Download Conference Presentations - Mortgage Lending Industry ...

MLI Emerging Markets and Diversity Conference
Current Issues
� Time-consuming, laborious to process for major lenders
• Historically had no real appeal to Mortgage Loan Officers, REALTORS, and
Builders, due to long approval process & high rate for declines
• Manual, time consuming process required the creation of a paper file prior
to an Underwriting review, where loan stipulations were uneven
� Limited non profit borrower support activity in this space
� Historically, Thin File Customers received higher cost loans via:
• Teaser rates, Option ARMs, Interest Only, prepayment penalties, etc.
• Can lead to resets, payment shocks, etc.
� No widely accepted industry standards for evaluating non
traditional creditworthiness and ability to repay
� Limited market liquidity for non traditional credit products
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