It would not supprise me that by next year you will not be able to get a mortgage unless you have a credit score of 720+ and put at least 10% down.
The government is going to step in and allow the Federal Housing Administration (FHA) to insure these outstanding mortgages up to a certain maximum balance...say $500K.
The mortgagee will refinance at a government set interest rate and presto....crisis averted.
It's not rocket science.
There's no way this won't happen...especially if the RATS control the Congress and the White House.
President Bush should initiate this right now.