iEmergent, a Des Moines, Iowa-based market research, forecasting and advisory services firm for the financial services, mortgage and real estate industries, has introduced its new line of demographic mortgage forecast reports that assess lending opportunities and show loan distribution patterns among various home buyer and loan type segments, including ethnicity, race and gender.
iEmergent says its demographics, analytics and segment comparison tools give financial institutions the opportunity to more effectively focus their marketing to help communities of home buyers that are traditionally underserved by the lending community. The reports identify, quantify and compare the size and dynamics of high-potential and profitable demographic segments anywhere in the U.S.
The company's recent analysis of Purchase Mortgage Conversion Rate (PMCR) levels indicated that even though the 2003 to 2006 period witnessed a record-breaking surge of home-buying activity and rising homeownership, Hispanic, African American and moderate- and low-income segments were drastically underserved. During that time, African American and Hispanic markets were also prime targets for exotic adjustable-rate mortgage (ARM) and subprime products, which inevitably led to the sudden explosion of foreclosures in many such communities, the company explains.
"Many lenders are now avoiding these so-called distressed markets when in actuality, the demand for traditional loan products remains strong and risk factors are acceptable," says Dennis Hedlund, founder and president of iEmergent. "Reaching out to these borrowers can add profitability for a lender and help reverse the downward cycle of foreclosures that threaten the stability of vibrant communities."