Skip to main content

MORTECH 2000 provides technology prospectus and retrospective

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].
About the author
Published
Apr 12, 2005
STRATMOR, Teraverde Deal A 'Merger Of Equals'

The recent merger of mortgage advisory firms came without the need to lay people off or make any major staffing changes.

May 23, 2024
NEXA Pays Loan Officers 100% Of Commission Splits

LOs won't pay per-file fees or other hidden fees with NEXA100, says NEXA Founder and CEO Mike Kortas.

May 22, 2024
The Right Prescription

‘Doctor Loans’ making healthy strides in Florida

May 21, 2024
123 Newrez Employees Laid Off In Florida and Colorado

WARN Notices were filed the day after Computershare Mortgage Services, SLS acquisition closed.

May 07, 2024
Ishbia Predicts A Rate Cut By Election Day

CEO of United Wholesale Mortgage shares 'personal perspective' in new YouTube video

May 03, 2024
Yield Curve, Schmield Curve?

The yield curve is a harbinger, not the be-all, end-all for lenders.

May 02, 2024