MORTECH 2000 provides technology prospectus and retrospective – NMP Skip to main content

MORTECH 2000 provides technology prospectus and retrospective

National Mortgage Professional
Apr 12, 2005

What's in a name?Sandye Glazersub-prime loans, non-conforming loans, terminology If Webster's Dictionary defines "prime rate" as "designating the most favorable rate of interest available on loans from banks," then does "sub-prime rate" mean designating the most unfavorable rate of interest available on loans from banks?" Conventional wisdom, state legislatures and consumer advocates certainly seem to think so. In 2002, it has become politically correct to bash sub-prime mortgage lenders, likening them to used car salesmen and purveyors of snake oil. The term "non-conforming lender" has a nicer ring to it, doesn't it? If "conforming" means, "the same or similar," then "non-conforming" must mean, "standing on one's own and thinking outside the box." Dare I say it, but that nearly sounds commendable! So, I say, let us go back to making non-conforming mortgage loans available to those borrowers who do not run with the pack. Why not forget about sub-prime entirely? After all, a rose by any other name smells just as sweet, since, qualifying for a non-conforming mortgage loan means the exact same thing as qualifying for a sub-prime mortgage loan. "Sub-anything" just sounds worse. In articles on predatory lending, the villainous, mustached loan officers are never referred to as non-conforming mortgage lenders. They are sub-prime mortgage scalawags, prying on poor, lonely and weak borrowers. However, if they were written as non-conforming lenders instead, they would likely be seen as counselors, offering opportunity and advice for the innocent, young and needy. It all boils down to the old "I say, 'tom-ay-to,' and you say, 'tom-ah-to'" routine. I say, "non-conforming," and you say, "sub-prime." I say, "filling a need," and you say, "taking advantage of a group." I say, "opening up the housing market to credit-challenged consumers," and you say, "shamelessly exploiting unsuspecting borrowers." So, let's forget "sub-prime" all together and return to the "non-conforming" label. Or maybe "credit-challenged lending." How about "obstacle-heightened lending?" Or even "anti-traditional lending," or "can't-cut-the-mustard lending," or.... Sandye Glazer is an underwriter and administration vice president at Allison Mortgage Loan Servicing Corporation in Atlanta. She may be reached by phone at (404) 303-8777, ext. 104, fax (404) 303-0894 or e-mail [email protected]
Published
Apr 12, 2005
Lenders Complain FGMC Is 'Radio Silent' On Loans

Company said it would stop purchasing new loans in the wake of its mass layoff last week; seeking court-approved financing.

Industry News
Jun 30, 2022
AnnieMac Home Mortgage Acquires OVM Financial

Wants to expand its outreach into the Mid-Atlantic region.

Industry News
Jun 30, 2022
Ready Life Launches Black-Owned Fintech To Help Underserved Borrowers

Ready Life, led by two Black entrepreneurs, is taking aim at the racial wealth gap by starting a mortgage fintech.

Industry News
Jun 30, 2022
FGMC Files For Chapter 11 Bankruptcy Protection

FGMC notified laid-off 471 employees late Tuesday night that it would pay severance.

Industry News
Jun 30, 2022
FGMC Paying Severance To Ex-Employees

Late-night email tells laid-off workers they'll receive one week of pay for each year of service.

Industry News
Jun 29, 2022
Texas, N.Y. Law Firms File Class-Action Suit vs. FGMC Over Layoffs

Both firms represent a former employee suing over lack of 60-day notice before mass layoff on June 24.

Industry News
Jun 29, 2022