Carrington Mortgage is one of our lenders. They allow for credit scores down to 500, for VA/Conv/FHA. They allow for bank statement loans, which is easier for self-employed folks. They allow for loans for people that have had credit dings in the past (BK/Foreclosure). These are 'kind of' like the subprime loans we had in the past. The difference is that each of these loans will be manually underwritten, and with a more risky file, they will need to put more down, and/or pay a higher rate. It is an option for folks to buy.
I worked at a subprime lender in the past, and these are a little bit different. I do think this is just the beginning of more risky loans, but time will tell.
PS- if you want to explore these options, get in touch.