Sentences with phrase «agency if the borrower defaulted»

The holder may be the bank that issued the loan, a secondary market that purchased the loan from the bank or a guarantee agency if the borrower defaulted on the loan.

Not exact matches

Congress mandates that the insurance premiums the agency collects must be kept in a reserve fund that the FHA uses to pay lenders if a borrower defaults on an FHA - insured loan.

FHA insurance provides an incentive for lenders to loan money to individuals without requiring additional cash for a bigger down payment or significant personal cash reserves because the agency's insurance will pay the lenders if the borrowers default.

If the borrower defaults, you do not have any recourse but the lending websites do send the debt to a collection agency to recoup as much as possible.

Created by the Federal Housing Administration, these loans are insured by this government agency, so that guarantees that lenders won't lose their money if borrowers default on their mortgage.

In July 2015, the Department clarified that guaranty agencies are not allowed to charge these fees if the borrower enters into a rehabilitation repayment agreement within 60 days after notice of default.

Annaly and American Capital Agency, for instance, invest in agency mortgage - backed securities, which come with an implicit guarantee against default — meaning if the borrowers stop paying, they are reimbursed for the diffeAgency, for instance, invest in agency mortgage - backed securities, which come with an implicit guarantee against default — meaning if the borrowers stop paying, they are reimbursed for the diffeagency mortgage - backed securities, which come with an implicit guarantee against default — meaning if the borrowers stop paying, they are reimbursed for the difference.

Extended on credit, unsecured debt presents a higher risk to a lender since - in the United States - there are no debtor's prisons and if a borrower defaults on a loan, there is little that a lender can do about it except seek costly legal action and report to the credit reporting agencies.

Veterans Administration: The government agency that offers benefits to Military Veterans and in the case of home loans, offers a guarantee that a portion of the loan will be repaid if the borrower defaults.

If the borrower of a loan made under this part who has defaulted on the loan makes 12 on time, consecutive, monthly payments of amounts owed on the loan, as determined by the institution, or by the Secretary in the case of a loan held by the Secretary, the loan shall be considered rehabilitated, and the institution that made that loan (or the Secretary, in the case of a loan held by the Secretary) shall request that any credit bureau organization or credit reporting agency to which the default was reported remove the default from the borrower's credit history.

That means the agency reimburses mortgage lenders if borrowers default on VA home loans.

The difference is that while Fannie Mae or Freddie Mac stand behind the agency debt they issue, non-agency paper doesn't give an REIT as many remedies if the borrower defaults.

Defaulted borrowers may obtain a subsequent consolidation loan if the loan has been submitted to a guarantee agency for default aversion or if the loan is already in default.

Instead, the agency guarantees repayment to lenders if a borrower defaults, so that the lenders know they won't lose money on the deal, thus allowing them to offer competitive mortgage rates on loans that are easier to qualify for than conventional home loans.