Sentences with phrase «higher loan losses»

Just like out - of - area lending results in higher loan losses, strategies that rely upon combining small banks across geographic areas don't work.

Not exact matches

By comparison, a stress test on America's largest banks in 2009 found that in a worst - case scenario, losses at the 19 banks would hit 9.1 % of their loan portfolio, although, admittedly, many believe in reality it was far higher.

«Increased losses are emanating from weaker collateral pools in the 2013 - 2015 transactions, which have weaker credit quality including lower FICO scores, higher amounts of extended term loans (over 60 months) and higher LTVs [loan to value ratios],» Fitch Ratings analysts wrote Thursday.

On average, high - yield bonds are trading at 86 cents on the dollar, meaning the market is predicting a 14 % loss on the loans.

Achievement of these goals was considered by the HRC as very challenging, even aggressive, given the expected modest economic growth for 2007 for the financial services industry, the impact and duration of the on - going flat / inverted yield curve (meaning short - term interest rates that are virtually equal to or exceed long - term interest rates, thus lowering profit margins for financial services companies that borrow cash at short - term rates and lend at long - term rates), potentially higher credit losses, fewer available high - quality, high - yielding loans and investment opportunities, and a consumer shift from non-interest to interest - bearing deposits.

That is exactly what happened, the lenders exhausted the pool of borrowers, the reflexive impact of rising demand pushing prices higher began to wane, and the virtuous cycle turned dramatically (as they always do eventually) into a vicious cycle that triggered the Global Financial Crisis and those same banks that made all the ill - advised loans were crushed by massive losses Then, yet again, what were the «Masses» doing at the peak?

Investing in higher - yielding, lower - rated, floating - rate loans and debt securities involves greater risk of default, which could result in loss of principal — a risk that may be heightened in a slowing economy.

Andrew Orr, Deloitte financial advisory partner, said the new accounting standard could encourage banks to sell parts of their underperforming loan portfolios because this will result in faster recognition of losses and could reduce high valuations.

Although credit quality outside of CWB's portfolio of oil and gas loans remained stable, higher provisions for credit losses resulted from losses recorded against oil and gas loans.

They understand the increase in taxes due to higher tax brackets and the loss of key deductions, such as the student loan interest deduction.»

The knock - on effect is that Synchrony boasts steep loan losses and, consequently, high charge - offs.

By our analysis, SNV is a high risk, low reward stock... Given the significant losses SNV will face across its loan portfolio and particularly in its construction and development portfolio.»

· High Density Headlights · Tinted Windows · Zero Accidents · Only 2 Owners · Miles: 110,550 · Within the Last 3 months had tune - up (Brand new wires and spark plugs) 0 Problem (s) Reported: 15 Title / Problems areas checked: No abandoned title record No damaged title or major damage incident record No fire damaged title record No grey market title record No hail damage title record No insurance loss title or probable total loss record No junk or scrapped title record No manufacturer buyback / lemon title record No odometer problem title record No rebuilt / rebuildable title record No salvage title or salvage auction record No water damaged title record No NHTSA crash test record No frame / unibody damage record No recycling facility record 0 Event (s) Reported: 6 Vehicle uses checked: No fleet, rental and / or lease use record No taxi use record No police use record No government use record No livery use record No driver education record 1 Event (s) Reported: 9 Vehicle events checked: No accident record reported through accident data sources No corrected title record No duplicate title record No emission / safety inspection record Loan / Lien record (s) No fire damage incident record No repossessed record No theft record No storm area registration / title record

Gupta talked about the enhanced reliability and higher capital standards for MI, and how deeper MI coverage on GSE loans would almost double the amount of loss protection for the GSEs and taxpayers

Be aware, however, there are few problems on consolidation — for instance, loss of the grace period or the high cost of extended repayment — that you should take into account when considering a government consolidation loan.

Riskier mortgages attract higher fees compared to bank loans because the lenders must cushion themselves from losses in the event you default on payments.

And then it makes more money per dollar of loans it makes because it receives a high yield for these loans while simultaneously charging off a lower than normal amount of each loan each year for its losses.

Loaning to LTV that is higher than 85 % is dangerous as it might lead to losses even after a power of sale.

Because of the risk of default, lenders may also want to charge higher for the loans in order to offset any losses they encounter.

Don't assume that minor credit problems or difficulties stemming from unique circumstances, such as illness or temporary loss of income, will limit your loan choices to only high - cost lenders.

«Servicers are getting a huge chunk of money from force - placed insurance, and investors pay for it by higher loss severity at the liquidation of the loan.»

Unfortunately, these types of loans have significantly higher interest rates and risk the loss of personal property.

Urban notes in its study, «[p] rivate mortgage insurers have played a crucial role over the past six decades enabling first - time homebuyers to gain access to high -[loan - to - value] conventional financing while reducing losses for the GSEs.»

You'll have more options (and get better terms) for a house with a high appraised value and a low mortgage balanceits a low - risk loan for a bank to recoup its loss in the event you default on the loan.

I think the real challenge is that the economics in this market are challenging, small dollar loans with consumer that are generally higher risk, default rates are higher, loan losses are going to be higher.

When the prime rate of interest is higher on short term loans than on mortgage loans, the mortgage firm has an economic loss which is offset by charging a warehouse fee.

The loss of this income will last for the foreseeable future, will make his living expenses higher than his income, will barely allow him to maintain a subsistence living, and will make it impossible for him to repay the student loans.

Whether you use a store credit card, finance through a company's preferred lender, or take your loan directly from the company you are buying a product from, the interest rates need to be higher to offset the losses incurred from lending to riskier borrowers.

Higher interest rates generate enough revenue to offset the losses caused by loan defaults.

However, U.S. retail banking (15 %) saw its profits fall 10.6 % due to higher loan - loss provisions for commercial loans.

As the risk factor is high in such investments is high, this can further lead to losses and repayment of the loan amount can be delayed.

If you are talking about high yield loans to fund LBOs, very bad, and my won't some the investment banks take some losses there (but they won't get killed).

When the mortgage market started melting down in late 2007, despite their loans being high - quality, Thornburg started taking serious losses.

Loan loss provisions were generally higher than expected, and future outlook was also negative.

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.

'' [W] hen loan default rates are low — there would be limited or no reinsured losses; and in other years — when loan default rates are high — there would be significant reinsured losses and, correspondingly, significant reserves,» he wrote.

Substantially higher loan and lease losses would decrease its loan and lease reserve account to the point where this bank would have to increase the future provision for loan losses on the income statement.

The increase in the provision for loan losses was 1.8 %, while actual loan losses were significantly higher.

Investors with capital in senior loan funds can extend capital further down the yield curve for higher returns without the concern of loss stemming from bond convexity should rates push higher.

Nonetheless, these higher fico mortgages are expected to result in lower losses, so FHA should make money on mortgage loans issued this year and over the next few years, according to an independent audit designed to gauge the agency's health.

If there are losses on any of the loans, the losses are absorbed and the investor still has a very high likelihood of getting their 10 % return.

Lacking a sophisticated system for determining your ability to repay the loan, payday loan operators set high fees and interest rates to cover their losses.

It wasn't just a high - interest - rate, high - payment subprime loan that might have caused a foreclosure; it was a bad loan and then a job loss.

I doubt poor drought - stricken farmers in India (& now in Australia), who have a high rate of suicide due to inability to pay loans, would be able to participate & hedge their future losses.

Key Highlights: • Proficiently managed and maintained high quality loan portfolio of investment grade and non-investment grade accounts through accurate and timely qualitative and quantitative risk analysis to minimize loan losses.

«Often the most troublesome loans in an economic downturn are those made to higher - income borrowers who suffer job losses, because of the comparative scarcity of replacement jobs at that salary level,» says Widener.

To offset potential losses from failed construction loans, regulated institutions are now required to set aside increased capital for High Volatility Commercial Real Estate (HVCRE) loans — those made to finance the acquisition, development or construction of real estate.

On average, CMBS holders incur higher losses on loans from retail foreclosures than from other sectors, according to Trepp.

«Loss severities on mall loans have been meaningfully higher than other areas,» said Michael Yannell, the head of research at Gapstow Capital Partners, which invests in hedge funds that specialize in structured credit.

Because the potential loss on this type of capital is far higher than a traditional loan, the interest rates will also be higher as a result.