One very under serviced sector is crying out for your origination skills
Since the financial crisis that saw many homes foreclosed and house prices crash, one market sector has been almost ignored as we look for new business. That sector, the non-prime borrower is big, hungry for loans, and most are nothing like the borrowers that drove the huge housing asset bubble of the last decade.
Recent figures from Cooperation for Enterprise and Development (CFED) show that MOST Americans have less than prime credit – only 48.9% of potential borrowers score above 720 points.
With funding becoming more and more readily available, there are millions of borrowers looking for the opportunity to buy their homes - and pressure is mounting as they see house prices first stabilize and then start to climb.
“People don’t want to miss the boat” said John Macguire, Editor at Which Mortgage. “They’re getting over the fears that the bubble bursting created and soon they’ll be more scared that they’ll miss the opportunity to get a home at an affordable price”
And even as last year closed, figures showed that demand for non-QM loans was rising – are you doing enough to make you get your share of what could be a boom business?
How does your state stack up?
US states by % of population with prime credit rating
Recent figures from Cooperation for Enterprise and Development (CFED) show that MOST Americans have less than prime credit – only 48.9% of potential borrowers score above 720 points.
With funding becoming more and more readily available, there are millions of borrowers looking for the opportunity to buy their homes - and pressure is mounting as they see house prices first stabilize and then start to climb.
“People don’t want to miss the boat” said John Macguire, Editor at Which Mortgage. “They’re getting over the fears that the bubble bursting created and soon they’ll be more scared that they’ll miss the opportunity to get a home at an affordable price”
And even as last year closed, figures showed that demand for non-QM loans was rising – are you doing enough to make you get your share of what could be a boom business?
How does your state stack up?
US states by % of population with prime credit rating
| United States | 48.9% | Position |
| Vermont | 59.8% | 1 |
| Wisconsin | 59.7% | 2 |
| Minnesota | 59.4% | 3 |
| North Dakota | 59.3% | 4 |
| South Dakota | 59.1% | 5 |
| Nebraska | 57.3% | 6 |
| Iowa | 57.2% | 7 |
| Massachusetts | 57.2% | 7 |
| New Hampshire | 57.2% | 7 |
| Montana | 57.0% | 10 |
| Hawaii | 56.9% | 11 |
| Washington | 56.4% | 12 |
| Connecticut | 56.2% | 13 |
| Wyoming | 56.1% | 14 |
| Colorado | 55.8% | 15 |
| Utah | 55.6% | 16 |
| Pennsylvania | 55.2% | 17 |
| Maine | 55.0% | 18 |
| Oregon | 54.6% | 19 |
| Kansas | 53.8% | 20 |
| New Jersey | 53.8% | 20 |
| New York | 53.0% | 22 |
| Alaska | 52.5% | 23 |
| Idaho | 52.4% | 24 |
| Rhode Island | 52.2% | 25 |
| Virginia | 51.4% | 26 |
| Illinois | 51.2% | 27 |
| California | 50.1% | 28 |
| Ohio | 50.1% | 28 |
| Delaware | 49.5% | 30 |
| Maryland | 49.5% | 30 |
| Michigan | 49.5% | 30 |
| Missouri | 49.3% | 33 |
| Indiana | 49.2% | 34 |
| District of Columbia | 49.1% | 35 |
| Arizona | 45.7% | 36 |
| West Virginia | 45.7% | 36 |
| Kentucky | 45.4% | 38 |
| North Carolina | 44.8% | 39 |
| New Mexico | 43.9% | 40 |
| Tennessee | 43.6% | 41 |
| Arkansas | 43.2% | 42 |
| Florida | 43.0% | 43 |
| Oklahoma | 42.8% | 44 |
| Alabama | 40.7% | 45 |
| South Carolina | 40.4% | 46 |
| Texas | 40.1% | 47 |
| Nevada | 39.4% | 48 |
| Louisiana | 39.2% | 49 |
| Georgia | 38.1% | 50 |
| Mississippi | 35.0% | 51 |
