KNX radio runs a business hour every weekday here in LA. Real estate is a regular feature. They feature analysts from the California Assoc of Realtors, the business schools at UCLA, USC, Chapman, people from the lending world, and so forth. I have repeatedly heard that the figure for POAs, interest only loans, 100% financing, and similar exotic products has been over 40% of all lending here for the last two years.
This probably isn't the case in most of the country. It has been driving prices here, and it's been great if you don't mind spending $440 a sq ft for a house with no yard.