Now that the oversight stopgaps have been lifted for two of the US’s biggest poor credit mortgage lenders, analysts believe that the market may be turning around. Although poor credit mortgages still account for the majority of foreclosures, these lenders should be able to offer more refinances to help homeowners keep from defaulting. This may mean growth for the poor credit mortgage lenders, even though they are struggling right now.”I suspect that in the long term, their share of the market will increase,” said Dean Christon, executive director of the New Hampshire Housing and Finance Authority. “That may actually have a positive effect in the access to capital, which translates into access to home loans for buyers, particularly those with credit issues or without sufficient funds for a down payment.”He continued, “We have a single-family mortgage program that is based on the sale of bonds to private investors. Fannie Mae was for a period of time a major purchaser of our bonds, but at least for now, it’s unlikely they will re-enter the market immediately.”"Service Credit Union may not be as affected as other financial institutions,” said Karen Benedetti, vice president of marketing for SCU.
Related reading: Poor Credit Mortgage
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