Not exact matches
My current
loans are all consolidated with
fed loan servicing so I asked why cant I just sign up with them for this same program and the response was that they prob wouldn't offer it to me bc it makes them loose to much money which doesn't seem like they would have a choice to not offer a federal program for federal
loans they
hold.
Well, if the
Fed tries to do something similar to «operation twist» it would require banks to
hold more capital against their positions, because the safe interest rate falls, it causes the risky portion of each
loan to rise.
Other borrowers who should see immediate benefits from the
Fed cut are those
holding loans tied to U.S. banks» prime rate.
But it begs the question: How long will they
hold it at that range, and what will happen with personal
loan rates when the
Fed does finally change its monetary policy?
Originally, the
Fed wanted to require banks to
hold more capital in reserve for most of the residential mortgages they make, which would have made these
loans far less attractive to banks than other types of products.