Any increases in the payment could cause you to default,
labeling you as a credit risk.
Once a lender has
labeled you as a credit risk, it can be hard — if not impossible — to qualify for certain types of loans or credit card offers.
Not exact matches
That's why services like GoCleanCredit help you restore your
credit in order to face life's various purchases with a clean
credit score, thus
labeling you
as less of a
risk to
credit card issuers.
While government agency - backed RMBS were not immune to the negative
credit risk implications, especially
as the government agencies — Federal National Mortgage Association (FNMA or Fannie Me) and Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)-- were placed under conservatorship by the U.S. government in 2008, «private
label» RMBS without government backing were clearly the more volatile investments, and they suffered losses in the underlying assets,
as well
as severe swings in market value.
They will interpret your
credit score in slightly different ways,
as far
as labeling you
as a high
risk or a low one.
Experts
label such transactions
as anomalies and argue the deals mirror a strategy occurring in healthier markets: Investors pay high prices and accept lower yields in return for well - located buildings filled with low -
risk, long - term
credit tenants.