The Sun carries a story about one Southern California mortgage lending company who is actually experiencing success lately. Mike Douglass and Gary Martell, Jr. have been dealing in home loans together for years. Instead of making a money-grab selling subprime mortgages, they stuck to more conventional packages such as FHA loans. Says Martell, "In lending, you have to have a conscience to do this."
Although their more conservative lending strategy took more work, Martell and Douglass still have their money, and their competitors who sold subprime mortages are all gone. Furthermore, because housing prices have dropped, more people are looking into the capped FHA loans and business is good.
The lending with a conscience is literally paying off.
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