03/09/2009
Fairway America is Lending!
A lot of you may be wondering, given the current economic situation , how business is here at Fairway America. Our answer?
We are busy. We are expanding and lending and just having a terrific time. Our market has actually improved on the new loan front because we have capital and we are lending and the guys who used to qualify for bank financing don’t and so we look pretty good to them now. That means we are getting borrowers who would have qualified for bank loans a year ago. Over all that leaves us lending to borrowers with higher quality property and better credit scores.
The down side is our default rate has increased, but we anticipate we will recover all of our money, plus costs, charges fees and late fees and default interest on almost all of the defaulted loans. Also, we have a strong commitment to partnering with our struggling borrowers to assist with finding the right realtor, correct pricing and other strategies to help them meet their obligation to Fairway.
It is very sad for the borrowers that times are so tight for them and we do feel the pain. On the flip side, every challenge contains within it an opportunity and we are working hard to stay abreast of the trends.