Non-bank lenders seek comeback

April 01, 2011 01:37PM

Non-bank mortgage lenders are looking to stage a comeback nationwide, according to the New York Times, despite the bad rap they got during the housing crisis. High-profile lenders like the now-closed Countrywide Financial and Ameriquest Mortgage became associated with predatory sub-prime lending during the economic turmoil, which experts say later dissuaded other potential borrowers from pursuing mortgages from non-bank lenders. But other non-bank lenders say this stigma is unfair. “Most consumers say, ‘Who are these people?'” said Glen Corso, the managing director of the Community Mortgage Banking project, a trade group that represents dozens of non-bank lenders across the country. “The fact is that these are mainstream loans with good pricing.” [NYT]


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