Boutique Lending Agencies Approving Riskier Mortgages
According to a report by Bloomberg News, although the big banks remain stingy with regard to who they give out mortgages to, many smaller lenders are beginning to take a risk in approving mortgages for people with a less-than-stellar financial history.
These gambles typically come with higher interest rates or require larger down payments.
“Some lenders became afraid of their own shadows,” said RPM Mortgage Inc. Chief Executive Officer Rob Hirt. “The market is beginning to realize that if you make smart and sound loans to people who don’t fit in the narrow box, it doesn’t make them a worse risk.”
Image via flickr/nikcname