The creative writing department at my college only wanted "literary fiction," whatever that meant to them. I think what the professors wanted was akin to modern realism, but I didn't stick around past the introduction course to find out. It really annoyed me that people in class would be taken to task for writing stories with werewolves, or setting a story in the Old West. I always figured that an introduction course should let us test out several different genres as well as types of creative writing (poetry v. prose).