credit crunch...

The prime lenders are starting to hurt, from both lack of business and a credit crunch, according to WSJ Online.

"LoanCity, which employed 300 people, says its mortgage business shrank by nearly 40% last year. Ironically, the company attributes that decline to its decision to stay out of the risky subprime market. 'We felt the risks associated with the subprime market were too great and tried to battle it out on the higher-credit spectrum,” said Mr. Soukoulis. “But by doing that, we lost some market share.' "

Hmmm... I thought that staying away from subprime loans was a good way to stay in business. It's not a good sign that some lenders lost either way.