Sentences with phrase «even if the borrower defaults»

Even if the borrower defaults, the vehicle has not been pledged as collateral and can not be repossessed.

This allows the banks to get closer to break even if the borrower defaults on the loan.

Additionally, government insurance programs like FHA ensure that lenders get paid, even if a borrower defaults on the loan down the road.

So for the loans which are underwritten to, say FNMA Guidelines, investors know there is a certain underlying credit quality for the MBS that they purchase and even if a borrower defaults on their mortgage, the investor will be fully repaid.

A CDS is a form of insurance in which the issuer (AIG) guarantees that a bond will be paid off even if the borrower defaults.

Forbes contributor Mark Greene explained if lenders follow this «ability - to - repay rule» and demonstrate they did everything they could to determine a borrower was reliable, they won't have to buy back the loan even if the borrower defaults.1 The more proof a lender has that he or she did everything possible to make sure the borrower was in good financial standing, the more protected that lender will be.

Keep in mind that they retain this payment even if the borrower defaults again.

With a VA loan, the federal government guarantees that a portion of the loan will be repaid even if the borrower defaults on its terms.

Additionally, government insurance programs like FHA ensure that lenders get paid, even if a borrower defaults on the loan down the road.

Not exact matches

The CFPB issued a consumer advisory in April 2014 warning borrowers of provisions that may lead to default even if the borrower is current on payments.

Unlike other loans, student loan defaults stay on a borrower's record for life, even if bankruptcy is filed.

Recent analyses of administrative data suggest that borrowers who leave college without earning a degree are at even greater risk of default than those who graduate, even if they graduate with more debt.

Accordingly, cosigners are treated by lenders and servicers the same as the primary borrower, and can even be sued if the borrower defaults on the loan.

Unlike other loans, student loan defaults stay on a borrower's record for life, even if bankruptcy is filed.

Non-recourse means if a borrower defaults on the loan, the issuer can seize the home asset, but can not seek any further compensation from the borrower — even if the collateral asset does not fully cover the full value of the loan.

For this reason, it's important that any potential cosigner is aware that if the borrower stops making payments, the default will go onto the cosigner's credit report and they can even be sued personally for the debt.

«Even if the borrower looks perfect on paper, there's still a 2 % chance they will default,» says Hogue.

Another CFPB report found that private student lenders and servicers placed borrowers in default when a co-signer died or filed for bankruptcy, even if the loan was in good standing.

Borrowers can obtain money, even if they have defaulted on past loans or have outstanding debt.

Lenders, aware that a high default rate could get their FHA approval yanked, even if they abide by FHA guidelines, choose almost universally to impose higher credit score requirements on borrowers they approve.

Even if you only invest in borrowers with good credit, some may still default.

Even if a student loan is in default (and with a debt collector), borrowers with federal student loans can rehabilitate the loan.

Even if a homebuyer defaulted on their loan, it was unlikely that multiple borrowers in a package would also default.

If they become delinquent or go into default, it's up to you to fulfill the debt and take over their payments, effectively making you, the cosigner, the primary borrower on a loan that wasn't even yours to begin with.