Sentences with phrase «funds if the borrower defaults»

FHA loans are guaranteed by the government, so that the lender is paid back with federal funds if the borrower defaults.

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.

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.

HUD pays claims to lenders if homeowners default, using money from the FHA insurance fund, which is money pooled from borrower - paid mortgage insurance premiums and payments.

Private mortgage lenders actually fund FHA home loans, and the Federal Housing Administration (FHA) covers their losses if borrowers default.

The premiums fund the Mutual Mortgage Insurance Fund, which would bail out lenders if borrowers default on their mortgafund the Mutual Mortgage Insurance Fund, which would bail out lenders if borrowers default on their mortgaFund, which would bail out lenders if borrowers default on their mortgages.

Indeed, if you fund Kiva loans with a US Bank Flexperks Travel Rewards card, all you have to pay for your revenue tickets is the time value of your money and the risk of your Kiva loans defaulting (which can be substantially mitigated against by carefully choosing your loans and diversifying your loans across borrowers and countries).

Businesses readily accept life insurance as collateral due to the guarantee of funds if the borrower were to die or default.

Specified cash value on a permanent life insurance policy lets the lender access those funds as a loan repayment if the borrower defaults.

The report, which indicated FHA's Mutual Mortgage Insurance Fund (MMIF)-- responsible for paying lenders if a borrower defaults — is on steady ground, is another positive development for housing, says Bill Brown, NAR president.