Sentences with phrase «as high default rates»

These types of loans also carry other risks, such as demand provisions under which a bank can arbitrarily demand repayment, as well as high default rates, putting borrowers in a difficult spot.

But it might not be for any one reason, such as a higher default rate in state X or fewer natural disasters in state Y. Or more regulations in another state.

Not exact matches

Among those that Moody's rates, there were nine defaults in the first quarter, an «all - time high,» as Moody's put it, «reflecting the fallout of changing consumer behavior and advancing e-commerce for traditional brick - and - mortar retail.»

However, when house prices began to decline, lenders were unwilling to refinance, and as a consequence, borrowers were often unable to pay the higher interest rates, which prompted defaults.

Advice: Because bonds with longer maturity face greater risk of changing interest rates (and greater default risk, as well), they typically pay higher interest rates.

As you can see from this data, the penalty / default rates are at the minimum 7 - 8 % higher than the worst rates you would normally see on your credit cards.

In fact, you often end up earning way more $ $ $, at higher interest rates, as I did on 2 of my defaulted investments.

It has a very very high default rate (as mentioned in the con section) and the customer service is really poor.

Specifically, Defendants made false and / or misleading statements and / or failed to disclose that: (i) the Company was engaged in predatory lending practices that saddled subprime borrowers and / or those with poor or limited credit histories with high - interest rate debt that they could not repay; (ii) many of the Company's customers were using Qudian - provided loans to repay their existing loans, thereby inflating the Company's revenues and active borrower numbers and increasing the likelihood of defaults; (iii) the Company was providing online loans to college students despite a governmental ban on the practice; (iv) the Company was engaged overly aggressive and improper collection practices; (v) the Company had understated the number of its non-performing loans in the Registration Statement and Prospectus; (vi) because of the Company's improper lending, underwriting and collection practices it was subject to a heightened risk of adverse actions by Chinese regulators; (vii) the Company's largest sales platform and strategic partner, Alipay, and Ant Financial, could unilaterally cap the APR for loans provided by Qudian; (viii) the Company had failed to implement necessary safeguards to protect customer data; (ix) data for nearly one million Company customers had been leaked for sale to the black market, including names, addresses, phone numbers, loan information, accounts and, in some cases, passwords to CHIS, the state - backed higher - education qualification verification institution in China, subjecting the Company to undisclosed risks of penalties and financial and reputational harm; and (x) as a result of the foregoing, Qudian's public statements were materially false and misleading at all relevant times.

Properties purchased as vacation or second homes tend to have a higher default rate.

For roughly three decades, U.S. non-financial corporate debt as a percentage of U.S. nominal GDP and the high yield default rate moved in tandem.

In the recession before that, the default rate went as high as 7.79 %.

These bonds offer higher yields but are coupled with a higher risk of default, as signified by these companies» lower credit ratings.

For example, for the 2003 - 04 cohort, the default rate among borrowers was about twice as high at for - profits as at public two - year institutions (52 percent versus 26 percent).

It sounds as if the private teacher preparation system in Texas comes very close to the scandalous and very expensive (to students, parents, and the federal government - through very high default rates on guaranteed student loans) «private college» system which is currently being forced to clean up its act.

Lenders consider borrowers with damaged credit as risky and charge high interest rates to compensate for higher default rates.

For younger students, who do not have sufficient credit history, monthly payments on private student loans could be hardly bearable, as the interest rate set by lenders is typically very high to offset potential risk of default.

Defaulting on a loan will cause a substantial and lasting drop in the debtor's credit score, as well as extremely high interest rates on any future loan.

This is because lenders attempt to minimize their risks, as bad credit borrowers feature high rates of defaults.

Obviously someone within the FHA knows that you can not make a mortgage loan to low score borrowers while seeking low mortgage default rates as FHA has refused to lower the Upfront Mortgage Insurance Premium on each mortgage originated from the current 1.75 % as they know they will have higher mortgage default rates with the lower FICO score borrowers.

As you can see from this data, the penalty / default rates are at the minimum 7 - 8 % higher than the worst rates you would normally see on your credit cards.

Higher - investment grade corporate bonds, such as those with «AAA» credit ratings, tend to have very low default risk.

Because of multiple payments for different loans, there has historically been a high default rate, as juggling multiple loans gets tricky.

These bonds offer higher yields but are coupled with a higher risk of default, as signified by these companies» lower credit ratings.

However, the interest rate isn't necessarily the same thing as some bonds may have higher yields do to the potential for defaults like junk bonds for example.

Rising interest rates can also lead to increased default rates, as holders of adjustable rate debt find themselves faced with higher payments.

Prior to the CARD Act When a cardholder bounced a monthly payment check, missed a payment, was late on a payment, or went over their credit limit, a higher APR known as a default or penalty rate was assigned to their credit card account.

High rates of default on FHA loans, as was seen among the Citibank loans, have been a drain on the agency's insurance reserves, which exist to compensate lenders who suffer defaults under the program.

As you might expect, the lower the quality, the higher the rate of interest investors demand to reward them for accepting the increased risk of default.

The fact is that there are major greater risks on non-owner occupied investment homes than owner - occupied 2nd homes as the default rate with investment properties is much higher.

Looking for college and school loans outside of the traditional methods can be very risky, as the rates are usually much higher, the terms are not as forgiving, and the penalties for default can be severe.

It is not surprising that many of the schools with the highest default rates are non-degree and for - profit as these schools generally have very low or nonexistent eligibility criteria.

Though this may seem surprising at first glance, there is a possible explanation: All community colleges are considered public schools, and community colleges have a higher default rates, on average, as compared to traditional 4 - year colleges.

This would imply that it would make sense to skew investments towards higher rated borrowers (A & B), as the total return will likely be higher after accounting for the expected higher defaults in C and lower borrowers.

And panic there is: even with the rebound of the past two days, the stock is down 44 % since the Deepwater Horizon accident, the credit - default swap spreads have widened to all - time highs, seven analysts have cut their rating this week alone, and well - known energy investment banker Matt Simmons said on Wednesday that «I don't think BP is going to last as a company for more than a matter of months.»

These borrowers are associated with a higher risk of defaulting on their loan payments or on the loan as a whole, and to offset that risk they will be charged much higher interest rates than traditional mortgages.

The rate of default is much higher for high - yield bonds, fittingly referred to as junk bonds.

Sorry I mean't to add one other thought, if the card holder is carrying a high balance and their interest rates increase like the banks have been raising in recent months, this could backfire on the banks themselves, I mean since the banks give a 45 notification of the increase and the consumer is already maxed out and can barely make the payments as it is, the increased interest rates because of how the congress requires at least all the monthly interest and some of the principle to be paid on the cards, done so that consumers could reduce the amount of time to illiminate their debts, this may spawn many card holders whoms payments will increase much like those adjustable rate mortgages that people walked away from to go wild with their remaining balances on the card and then default, the whole irony is that the consumer may very well use the card thats damaging them to pay for bankruptcy proceedings lol!

Issuers with higher credit ratings generally pay less interest than issuers with lower credit ratings as they have a lower risk of defaulting on their loans.

Lenders can still use the cross default (also known as universal default) to raise the interest or change terms based on your payment record with unrelated accounts but can only charge the higher rate on new purchases.

This is a good solution if you have a lot of unsecured debt, such as credit card debt for which the interests rates are high or which have defaulted to high penalty rates.

Possibly part of the reason that the default rate has declined is that the overall enrollment in proprietary schools slightly decreased and sanctioning institutions with excessively high default rates from accepting federal loans as payment.

Being late with even one payment will result in your interest automatically rising to the default rate, which could be as high as 25 percent or more.

However, as you can imagine, riskier notes tend to have a higher default rate than less risky notes.

While many politicians will try to make the point that high student loan debt leads to a higher rate of default, data from the Consumer Credit Panel shows that the default rate actually drops as the amount of borrowing increases.

But despite the similar interest rates, FHA loans often end up costing borrowers more in the end because they require a smaller down payment and have high insurance premiums, which borrowers must pay as part of the FHA process to protect the lender from a loss in the event of borrower default.

For roughly three decades, U.S. non-financial corporate debt as a percentage of U.S. nominal GDP and the high yield default rate moved in tandem.

As for distressed, if we look at high - yield bonds as a proxy, 5 % yields now leave little room for error... and let's not even mention Euro high - yield, where the spread actually fell below the most recent default rateAs for distressed, if we look at high - yield bonds as a proxy, 5 % yields now leave little room for error... and let's not even mention Euro high - yield, where the spread actually fell below the most recent default rateas a proxy, 5 % yields now leave little room for error... and let's not even mention Euro high - yield, where the spread actually fell below the most recent default rate!?

With a credit card you should also check the interest rate charged for late repayments (called default interest) as it is often higher than the normal interest rate.

The insurance fund tripled in size last year and has taken on more risk as private industry sources for lenders to finance and insure home loans dried up and mortgage default rates rose to record highs.