by Calculated Risk on 4/17/2007 10:56:00 PM

From the WSJ: Regional Banks Report Profit Declines

Earnings reports at some regional banks suggested subprime credit problems may be spreading to certain types of prime home loans.
...
John McDonald, an analyst with Banc of America Securities LLC, says prime home-equity loans may become the next problem-loan category given rapid growth and "looser" underwriting.

These appear to be minor problems right now, but as housing prices fall, more problems will most likely emerge.