Sentences with phrase «guarantee against borrower default»
These include a federal guarantee against borrower default, special allowance payments and lender - paid origination fees.
http://www.finaid.org/ Not exact matches
The federal government guarantees FFELP loans against borrower default and ensures that the lenders receive a market rate of return on the loans despite the lower interest rates paid by borrowers of education loans.
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 difference.
VA: Department of Veterans Affairs: a federal agency which guarantees loans made to veterans; similar to mortgage insurance, a loan guarantee protects lenders against loss that may result from a borrower default.