Mortgage brokers are doing less subprime business in favor of traditional loans, according to a new survey. The trend highlights the increased level of difficulty subprime borrowers face in finding home financing.
Subprime loans represented 11 percent of April business, according to a survey of 200 brokers announced by the National Association of Mortgage Brokers today. For all of 2006, the subprime share was 13 percent.
Subprime borrowers were defined as those with credit scores under 620, the report said.
Prime loans, on the other hand, accounted for 56 percent of April business, though the share was down from 61 percent in March, according to the survey.
"This data shows that brokers are anticipating and meeting the changing needs of their customers," NAMB President George Hanzimanolis said in the statement. "The shift in the market toward more traditional loan products is yet another reason we have cautioned Congress not to overreact to existing concerns and allow the market to adjust."