Many of you probably don't know, but my 1st two years of college was a NYU.  So it really peaked my interest when I recieved this BrokerUniverse newsletter today.

By Alton Gary Simpson

NEW YORK -- Taking a stance contrary to the emerging conventional wisdom that subprime mortgages are the root of all evil in the mortgage market are Alexei Tchistyi of New York University's Leonard N. Stern School of Business and Tomasz Piskorski of Columbia Business School. The pair has authored the study, "Optimal Mortgage Design," to answer the question, "Assuming 'full rationality,' what is the best possible mortgage contract between a homebuyer and a financial institution?" They posited an optimal mortgage contract and then compared the features of existing mortgage contracts with those of the optimal contract. They concluded that alternative mortgage products such as subprime products -- such as, option ARMs or the combination of an interest only mortgage with a HELOC, are more efficient than traditional mortgages.

              Click here to read the full story.................

I for one do believe that subprime works because it help me get into my 1st home when other's wouldn't give me a chance.  The key I believe is to get a loan officer who is reputable to assit you so you donn't go over your means.