[quote=Bob]
The reality is, banks ARE lending again. In fact, some lenders are going so far as to once again offer exotic loans such as interest only, etc..But in today’s world, banks will lend only to applicants that are qualified, and thats the way it should be.
[/quote]

On rate sheets I’ve seen 5/1 ARMs, 5/1 IO ARMs, 10/20 fixed IO … just about everything except option ARMs. To my great surprise I’ve even found myself debating their merits.