Last year my Los Angeles real estate prediction was that we would return to common sense lending. Common Sense Lending:

• Home buyers with excellent credit and verifiable income should be able to qualify with lower down payments.  

• On the other hand, buyers who can’t verify adequate income but have a healthy 30% down payment and excellent credit should still have a loan option (with higher pricing to offset the risk).  

• Buyers with poor credit should be required to make larger down payments – perhaps even as much as 50%.  

Bankers don't have to be Einstein to figure this out; I am going to make the same prediction for 2011; sooner or later I have to be right!