iEmergent announces release of demographic segment lending forecastsMortgagePress.comethnicity, race and gender, underserved community, adjustable-rate mortgages (ARMs) and sub-prime products
iEmergent introduced its
new line of demographic mortgage forecast reports that assess
lending opportunities and show loan distribution patterns among
various homebuyer and loan type segments including ethnicity, race
and gender.
iEmergent's demographics, analytics and segment comparison tools
give financial institutions the opportunity to focus their
marketing to help communities of homebuyers that are traditionally
underserved by the lending community. The reports identify,
quantify and compare the size and dynamics of high-potential and
profitable demographic segments anywhere in the United States.
iEmergent's recent analysis of Purchase Mortgage Conversion Rate
(PMCR) levels indicated that even though the 2003 to 2006 period
witnessed a record-breaking surge of home buying activity and
rising homeownership, Hispanic, African American, and moderate- and
low-income segments were drastically underserved. During that time,
African American and Hispanic markets were also prime targets for
exotic adjustable-rate mortgages (ARMs) and sub-prime products,
which inevitably led to the sudden explosion of foreclosures in
many such communities. As a result, a large share of the borrowers
in those demographic segments who would have qualified for fully
documented Federal Housing
Administration (FHA) loans were sold expensive ARM and
sub-prime loan products that were fast and easy for lenders to
make, but which have put borrowers at increased foreclosure
risk.
"Many lenders are now avoiding these so-called 'distressed'
markets, when in actuality the demand for traditional loan products
remains strong and risk factors are acceptable. Reaching out to
these borrowers can add profitability for a lender and help reverse
the downward cycle of foreclosures that threaten the stability of
vibrant communities," said Dennis Hedlund, founder and president of
iEmergent.
For more information, visit www.iemergent.com.
