There are plenty of regional/local banks and credit unions that made mortgage loans to creditworthy buyers with down payments, and held the loans themselves. By and large they are doing ok.
It's the international investment banks that bought big bowls of mortgage souffles that are in trouble.
Or rather, it's us taxpayers who in trouble, since it's the big banks who have the Bush/Paulson/Obama/Geithner blackmail photos stashed away.