iEmergent analytics solution enables lenders to identify and reach out to underserved markets based on race, gender, income, loan type or mortgage deman.

 
iEmergent Announces Release of Demographic Segment Lending Forecasts for Mortgage Industry

Des Moines, Iowa, June 26, 2008—iEmergent, a Des Moines, Iowa-based market research, forecasting and advisory services firm for the financial services, mortgage and real estate industries, 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’s 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 United States.

iEmergent’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, moderate and low-income segments were drastically underserved. During that time, African American and Hispanic markets were also prime targets for exotic ARM and subprime products, which inevitably led to the sudden explosion of foreclosures in many such communities. As a result, a large share of the borrowers in those demographic segments who would have qualified for fully documented FHA loans were sold expensive ARM and subprime loan products that were fast and easy for lenders to make, but which have put borrowers at increased foreclosure risk. 

“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.  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,” said Dennis Hedlund, founder and president of iEmergent.

iEmergent’s products are derived from unique market metrics that calculate where and what types of lending opportunities exist, enabling lenders and brokers to anticipate and forecast their mortgage opportunity. The reporting tools available through iEmergent are based on various criteria, including national, state, county or local geographic locations and all types of loan products and borrower segments, such as loan sizes, race, income ranges and gender.

 

About iEmergent
Founded in 2000 by Dennis Hedlund, Des Moines, Iowa-based iEmergent provides marketing analytics and lending forecasts targeted to the mortgage lending, housing and real estate industries. The company offers an extensive variety of products as part of their Market Manager product suite, which includes tables and tools that are designed to help lenders improve their front-end efficiencies by matching their lending models and products to the right markets. For more information, visit www.iemergent.com.

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