Sentences with phrase «enough if a loan defaults»

Jeffrey Naimon, an attorney at BuckleySandler, said banks are punished enough if a loan defaults because the ability - to - repay rule allows borrowers to sue a lender for alleged underwriting mistakes.

Not exact matches

As if dealing with the death of a loved one isn't hard enough, having your loans go straight to default is salt on the wound.

If the borrower defaults on their loan and there isn't enough equity in the home to cover what is owed on the mortgage, private MI is there to offset the loss.

The bubble was a combination of (a) teaser rates on option ARMs which were like financial time bombs, (b) liar loans in which the rules of good mortgage underwriting (20 % down, 28/36 ratios) went out the window, (C) people at rating agencies who decided that if one pools enough junk loans into one bond, it's magically AAA, and (D) Credit default swaps which encouraged these bad loans, and when they collapsed a number of people walked away with billions of dollars.

Normally it is easier to get a secured loan than an unsecured loan, if you have a bad credit history or CCJ's (County Court Judgments) as the lender considers your home as enough security in case you default on your payments.

Columnist Kathleen Pender wrote recently in the San Francisco Chronicle that approving FHA mortgage loans for borrowers who have outstanding debts in collection could increase taxpayer risk if these loans default and FHA doesn't have enough in its reserve fund for reimbursing lenders» losses.

It's bad enough to default on a peer loan but you risk alienating your friends and family if you default on a loan they funded.

If a private lender makes enough high - interest - rate loans, even with a higher number of defaults, it should still be able to make money.

The other possible reason for not taking the matching funds are if the required contributions would put you in a significant bind — if you're barely scraping by, and you can't squeeze enough savings out of your budget that you'd risk default on a loan (eg, car or house) or might take penalties for late fees on your utilities, it might be preferable to save up for a bit before starting the contributions — especially if you've maxed your available credit so you can't just push stuff to credit cards as a last resort.

If you make repayment arrangements soon enough after your loan has gone into default, you may be able to resolve the default quickly.