Sometimes conforming mortgage guidelines just do not fit into every deal.  This is where sub-prime lending comes into play.  Even in our tightening mortgage environment sometimes an alternative bank can place a difficult loan.  Today I called a sub-prime bank to find out if they can lend on a hard to place mortgage loan.  I talked with the account executive, and went over the client's entire loan situation.  After our discussion, she was not able to help me out.  Lately, it just seems that most sub-prime banks are not taking on any risk.  Her mortgage guidelines were so close to conforming guidelines that my thought was "why would I ever place a loan there and have my client end up paying more costs and  higher interest rates".  Sub-prime lending has just camouflaged themselves as conforming lending with a slight twist.  My thinking is that these sub-prime banks are just treading water until they feel comfortable with loosening up their guidelines again.  Now, I do not think they will ever get as loose as they were, but they will be back.