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The bottom line from the instability of the sub prime lending market is that sub-prime lenders, in their haste to show profit, were lending to people that had no business getting loans in the first place, because they were practically guaranteed to get a FHA loan bail out if the borrowers defaulted. Don't be surprised to hear many big name lenders go out of business when the government finally decides to discontinue these bail outs. What this means in the short term, is that the lending market will become much tighter, and the requirements and standards to be able to get loans will be much higher.

With higher requirements, that means that there will be more less customers (borrowers) to go around, making the importance of targeted direct mail and other direct marketing paramount to lenders. The lending market is sure to become a very, very competitive market, and lenders will have to place an increased emphasis on their marketing techniques, targeting specific demographics, in order to gain marketshare. Lenders will need to reply more heavily on bringing in borrowers that actually qualify for a loan, rather than picking up any stiff up off the street, brushing him off, and handing him a loan for a quarter million dollars.