About Subprime Mortgage Leads [mortgagerates-tips.blogspot.com]
Follow us on TWITTER: twitter.com Like us on FACEBOOK: www.facebook.com The Global Financial Crisis (GFC) started three years ago, but China seems to be immune to it. Under the tightening monetary policy, many of enterprises are turning into shadow banks. With the due date of loan sharking approaching, the economic claps occur continuously. Foreign media warned that the Chinese version of the Subprime Mortgage Crash is approaching. After the start of the GFC in 2008, China began changing its monetary policy. For small and medium size firms its difficult to access the formal banking sector. Instead, they loan money from shadow lenders who are actually state companies. The official sector can obtain money from state-owned banks and issue loans to other borrowers with higher interest rates. In addition, non state-owned shadow banks are expanding, and more problems are being exposed. Economists are worried that China is st arting to follow the pattern of the US' Subprime Mortgage Crash. During the World Economic Forum held in Dalian last week, a former vice chairman of NPC, Cheng Siwei said: "China's Subprime Mortgage Crash is the lending of money to local governments which have no ability to repay them." It is estimated that 80% of the loans from the top four banks in China go to state-owned firms. But now China has different shadow banks, from state-owned to individuals' firm, most of them with officials' background. Local governments use state funds to invest in businesses ...
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Subprime mortgage leads are very important for mortgage brokers especially in current economic downturn. Due to recession, there are millions of people who are suffering from bad credit due to some reason or other. Since their credit history is no so good now, these people are not eligible for normal mortgage loans. Therefore, they are called as sub prime customers or non prime customers.
A prospect can be a sub prime customer due to various reasons. He could have been laid of from the employer or maybe he is a young adult who hasn't yet got a chance to make his credit history. Then there are people who have problems with bankruptcies, liens, judgments etc. Sometimes, all they need is a second chance to repair their credit history and a sub prime mortgage loan may be the best option available to them.
The sub prime lead or pre-foreclosure lead is usually a person which is desperate for a second chance to make up his credit.
Since there is huge number of people who fit in this category, sub prime mortgage brokers have a good chance of making money. And the good thing about sub prime lending is that brokers get a good amount as commission when the lead converts into a customer.Therefore, it is important for the sub prime mortgage lead broker to make sure that when he gets a good lead, he is able to convert him to a customer. There are a few things which he should be aware of while working with sub prime customers. Firstly, he should target the customers. Cold calling will probably not work well. Only go after verified and qualified customers. Time is too precious to chase unverified leads. Be visible in the market place using either a website or through physical appearances in trade shows, association gatherings etc.
Lastly, make sure that all actions are done within legal boundaries. You have to honor direct mail ethics, do not call registry, do not mail registry etc to avoid any unnecessary legal hassles. You don't want to be one of those sub prime mortgage fraud cases. Related About Subprime Mortgage Leads Articles
