Take a look at this map I found on Fortune.com. It’s a state-by-state look at subprime mortgages. The redder the area, the greater number of subprime loans. Take a look at California:
The reason this is big news is that when real estate prices were hot, people who took out subprime loans could just refinance if their payments got too high. However, now housing prices are starting to fall and lenders are getting a lot more choosy on who they lend to. This is only going to make things worse before they get better.