Slump In Business For Sincere Lenders
Birmingham based Shore Mortgage watched with caution the stirring up of the mud in the sub-prime real estate market. But the young lender at the helm is ever ready to jump in and take a chance again. Brian May an office bearer of the company spoke about having helped a Romanian engineer. The latter had no credit roots in USA, which would enable him to take a loan. May justified their action by underlying the human aspect to the problem.
The company comprises of human beings and not just robotic computers. This is the guiding force motivating the action of the company. May went on to add that his company is mainly concerned with government loans to people who can keep up the mortgage commitment but whose credit ratings may not meet the usual loan standards. Shore Mortgage has always been particular about not entering either the sub-prime or Alt-A loan areas if they are not satisfied with the proof of the income of the lenders. They take into consideration people who can show employment records of about two years and are able to make a down payment of 5% in ready cash. Then they overlook the aspect of the credit history being good or bad. If the clients lack traditional credit cards and previous history of repaying loans Shore takes into account their records relating to payment of bills and rent. That is why till date they have not had any problems about foreclosures.
Shore Mortgage advances about 4,000 loans annually and has been in this business since 1984. However the real estate fiasco has meant a slow down in the business of Shore Mortgage. It has under its umbrella 200 employees in six offices across Michigan. Ohio and Alabama too feature under its zone of operation.
Michigan had the distinction of ranking third in the mortgage delinquency rates, new and old foreclosures during the first quarter of this year according to figures released by Mortgage Bankers Association. The President of Michigan Mortgage Brokers Association Paya Leyrer opines that although sub-prime has been mainly blamed for the foreclosure there are other economic factors like unemployment. In Michigan a good number of people have lost their jobs. A lot of effort is being made to make the borrower aware about what taking a loan involves and how to avoid failure and register success.
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