A Quick Look at the Rise of Direct Lending and the Collapse of Sub-Prime

In 2017, consumers looking to own a home have an array of options at their disposal. The direct lending marketplace has opened up a reservoir that would have left millions of Americans uninitiated with new home ownership otherwise. Leaders, like Dustin Dimisa, have helmed consumer programs to bring people towards ownership.

Sub-Prime Lending and Exploding

It all began with the near-collapse of the sub-prime system. The sub-prime system is backed by major banks. It basically scales mortgage lending based on a number of variables, such as borrowing history, bankruptcy, credit score, etc. The mortgages are built based on all these factors that get compiled into the sub-prime algorithm.

The problem is extensive and hard to decipher, but it basically came down to banks offering too many loans to people who do not fit the criteria- or the criteria was bad. Regardless, sub-prime lending has tightened up tremendously. This reality would have left millions of Americans totally lost if it was not for the rise of direct lending.

The Virtues of Direct Mortgage Lending

Direct lending cuts the sub-prime standards out of the picture by offering fair terms to consumers directly. Consumers receive a mortgage through the direct lending source. They are connected directly to where they need to be and are assessed at a more individual level. The lenders, being independent and not confined by red tape, can subsequently offer more personalized terms for owning a home.

Consumers have a way to connect with the best resources for direct lending in the city. Alternatives to traditional bank models have never been stronger. Consumer Connect is a platform to get Americans who can’t fit the sub-prime model a home that they can call their own. Dustin Dimisa is spearheading this project. The approach is to bring individuals towards home ownership by connecting them to a direct lender who can fairly supply them a loan. The system also offers resources and options towards this goal. To learn more about Dustin Dimisa, follow his official Twitter page. It covers how Consumer Connect works and what Dimisa is doing to bring people to ownership quicker and smarter than ever before.