The Academy of Financial Services 35th Annual Meeting

Small-dollar, Non-traditional, Mortgages, Financing, Interest

The research seeks to better understand the subtleties of small-dollar mortgages as an opportunity to serve borrowers with less traditional financing needs. In fact, the adage ‘less is more’ exemplifies a growing disparity that exists in current mortgage pricing. Small-dollar borrowers are more vulnerable to higher institutional premiums than their larger-dollar peers. Since the cost structures of borrowing are unlikely to change, having an awareness of this population and offering best practices is a value-added service for any financial professional. Staying informed about loan type, benefits of shopping, and collateral can contribute to a more affordable solution and an improved customer experience for these borrowers.