Mintel Comperemedia research tracks direct mail sent to households. Their data show mortgage solicitations in the mail fell 62 percent in the third quarter from the same period last year. Not surprisingly, ARMs (adjustable-rate mortgages) no longer predominate. The proportion of offers for for adjustable-rate mortgages fell from 56 percent to 22 percent.
Prominent mortgage brokers and mortgage banks have gone bust while major players have with drawn from the market.
DM News reports that the Treasury facilitated plan to selectively freeze the rates on some ARMs is causing direct marketing pros to adjust their offers.
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This article is another example of the subprime mortgage crisis causing the housing market and institutions involved to completely change the way they do business. The most interesting part of this article is the "trigger lead". While this practice must obviously upset the mortgage lenders who are discovering applicants with good credit, it seems like the practice gives the consumer the best rate.
This would be one of the many effects of the downfall of the housing market. advertising is decreased because market interest has decreased...maybe free home brochures should be sent out. Not sure what it would do for the market but it would be a kind gesture among the glum that is part of everyday life.
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