Who knows if subprime lending will return? Not us. But together we can take an educated guess.
The common sense answer to the question of whether or not subprime lending will return is "Of course it will". Housing (including home lending) is cyclical, and all things cyclical ebb and tide, fade out and return.
As with securities and other forms of investment, the waxing and waning popularity of various loan instruments is most heavily dependent upon demand. The money is there to lend. The only question is how to lend it.
A lender with no borrowers is no lender at all. To stay in business, a lender has to offer instruments that have lending criteria which borrowers can actually meet. Otherwise, with no qualified borrowers, it can't do what it's in business to do - make loans.
All this is to say that as long as there is a demand for subprime loans, subprime lending will eventually be made available.