Subprime: Lend Responsibly

Okay, here we go….

Back in 2007, “subprime” became a dirty word.  In the years leading up to the recession, lenders became increasingly aggressive in their lending guidelines in the pursuit of a greater market share of a very profitable business.  Looking back it is obvious that subprime lending had gotten out of control like an alcoholic at an open bar.  In hindsight, there was no chance that it would end well.

But should subprime be forever banned from the housing finance market?  Of course not.  Even the alcoholic can be fun to have at a party as long as we don’t let him drink anything stronger than ginger ale.  There is a need for sober subprime lending in the housing market.  In fact, some responsible subprime lending has already returned.  Wisely, no one actually refers to it as “subprime,” since to many people that is still a dirty word.

Examples of such products are what we call a Clean Slate and Next Step Programs.  As more private capital becomes confident in the mortgage market, we will see an expansion of responsible subprime lending. We will keep you informed of these new products as they become available in our marketplace.

*GOD Speed*




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