After years of fat commission selling exotic loans to desperate homebuyers, mortgage brokers are now waking up to the post-bubble reality. The loan officer forum - an industry notice board - tells a sorry tale. Brokers are finding it hard to make a living as increasing sub prime defaults, falling housing demand and tightening credit standards have led to a collapse in mortgage applications.

The opening post says it all:

"As I sit here felling like I just watched a train wreck, I am trying to comprehend everything we just witnessed. This is my 12th year in real estate so I can tell you it will be fine in the end, but wow what a day. Email after Email from lenders telling us of their guide line changes, and the layoffs. This is a lot to take in. So won't you join me and raise your glass to the end of a great ride, and the beginning of a better one."

Yes, the "great ride" is definitely over. The great housing market collapse has only just begun. Subprime lenders are falling like flys, and it is only a matter of time before financal failure infects the entire market.