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.
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