Subprime real estate loan party less hearty

Boom in loans to those with poor credit slows

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As the housing market slows, the booming subprime real estate loan market – loans for people with less-than-stellar credit – is also slowing, observers say, despite a long runup.

“In general, there’s been a subprime boom over the last two years,” said Jeffrey DerGurahian, senior vice president of capital markets at Metrocities Mortgage, “but Wall Street is getting concerned about the risks in these loans.

“Right now the execution selling loans to Wall Street is not as attractive as it used to be.