Divorce leads to an increased
demand for non-conforming mortgages
January is the busiest time of the year for relationship breakdowns according
Relate and mortgage lender GMAC-RFC is predicting that, as divorce rates
soar so will demand for non-conforming mortgages.
Non-conforming mortgages are sold to borrowers who may have poor credit
ratings. Research by NOP into the non-conforming sector found that divorce
or separation was a major influencer on becoming non-conforming. Therefore
there is a natural correlation between rising divorce rates and increased
demand for non-conforming mortgages according to GMAC-RFC.
the Director of Marketing at GMAC-RFC commented: "With divorce rates
increasing, we expect to see even more demand for non-conforming mortgages
in 2006, particularly in the near-prime market. There are still many misconceptions
about the profile of the non-conforming borrower. The reality is that
life changing events, in particular divorce or separation, are a major
driver in becoming a non-conforming borrower."
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