Sentences with phrase «lender if the borrower defaults»

They are insured by the Federal Housing Administration, which will fully compensate a lender if a borrower defaults on his FHA mortgage.

These guarantees compensate the lender if the borrower defaults.

These guarantees compensate the lender if the borrower defaults.

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.

They are insured by the Federal Housing Administration, which will fully compensate a lender if a borrower defaults on his FHA mortgage.

FHA insurance provides an incentive for lenders to loan money to individuals without requiring additional cash for a bigger down payment or significant personal cash reserves because the agency's insurance will pay the lenders if the borrowers default.

Private Mortgage Insurance (PMI) is a part of the loan payment and protects the lender if a borrower defaults on a home loan.

While the borrower pays the premium — which can add thousands of dollars to the cost of buying a home — the insurance actually protects the lender if the borrower defaults on the loan.

That means the agency reimburses mortgage lenders if borrowers default on VA home loans.

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

Instead, the agency guarantees repayment to lenders if a borrower defaults, so that the lenders know they won't lose money on the deal, thus allowing them to offer competitive mortgage rates on loans that are easier to qualify for than conventional home loans.

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.

Not exact matches

Jeffrey Naimon, an attorney at BuckleySandler, said banks are punished enough if a loan defaults because the ability - to - repay rule allows borrowers to sue a lender for alleged underwriting mistakes.

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

Private mortgage insurance (PMI) is a special type of insurance policy that is paid by the borrower and protects lenders against loss if a borrower defaults.

Private Mortgage Insurance (PMI) is a special type of insurance policy, provided by private insurers, to protect a lender against loss if a borrower defaults.

You, the borrower, pay mortgage insurance premiums, which cover the lender's losses if you default on your mortgage.

If the borrower defaults or can't afford to repay a loan, a lender loses money.

Lenders offering HMS will have the security of a government guarantee for the deferred payments, if the borrower defaults.

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.

If the borrower defaults on the loan, the lender can seize and sell collateral in order to recover its money.

The depth of experience of a reputable mezzanine financing provider can be advantageous for senior lenders, especially if the borrower defaults.

In some cases, lenders require a «personal guarantee» from small business owners — a written promise that the borrower's personal assets can be seized if the company defaults on their debts.

This is beneficial to you as the borrower since it speeds up approval time and you don't have to put up an asset the lender can seize if you default.

If a borrower defaults on his or her car loan, then the lender will repossess the car to try to recover the money it lost on the car loan.

Under the Ontario Mortgage Act, the private lender will sell property in default to recoup if a borrower was unable to pay agreed mortgage fees.

If a borrower is considered in default on a loan, the lender may demand immediate, full repayment.

Unsecured loans are not secured by collateral, and lenders have a more difficult time recouping their losses for these loans if a borrower defaults.

Personal lines of credit are usually unsecured loans, which means that there's no collateral underlying the loan; the lender has no recourse if the borrower defaults.

Accordingly, if the car being financed is also used as collateral, lenders need to make sure that it will be worth enough to cover their losses if the borrower defaults.

The lender is protected if a borrower defaults on the loan, and the borrower is protected if the lender goes out of business or the loan balance exceeds the value of the home.

Lenders don't want to give risky borrowers good offers if they believe the borrower will end up defaulting on their debt at a later date.

Originating lenders can be held responsible for repayment of a mortgage, generally in two cases: First if the borrower quickly defaults, say within 120 days.

The implication of no collateral which can serve as security to the lenders is that, if the borrowers default in payment, the lenders stand the risk of losing his money.

«Lenders may make exceptions to this rule for borrowers in default on their mortgage at the time of the short sale if

While the VA guaranty inspires confidence, lenders are still on the hook for 75 percent of that loan if the borrower defaults.

Private mortgage insurance (PMI)-- Protects the lender against a loss if a borrower defaults on the loan.

In particular, if a borrower finds that they might default, a private lender may consider extending the repayment term in order to lower the monthly payments.

Although peer - to - peer loan sites help evaluate risk for the lender, it's important to keep in mind that these loans are unsecured, so if the borrower defaults, you lose your investment.

From the lenders perspective, a secured loan has a safety net to fall back on if the borrower defaults.

Lenders do risk a loan going to collections if the borrower defaults.

Lenders will send the borrower a notice of default when the loan is at least 15 days in default, if the default is not corrected the borrower will then receive a statement of claim outlining the terms required to bring the mortgage into good standing.

In case of default, the lender goes after the buyer who assumed the loan and — if that buyer can not pay off the debt — the lender then goes after the original borrower.

This means that if the borrower defaults on the loan the lender will have a claim on any assets but after secured creditors.

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

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.

If the borrower defaults on the loan, the insurer must pay the lender the lesser of the loss incurred or the insured amount.

If you default on such a loan, the lender can take the collateral so such loans can be risky for borrowers.

Doing so would be very risky because such borrowers already have a habit of defaulting and if they do, there might not be enough to compensate both lenders of a registered mortgage.

Since home loans are backed by a borrower's real property, a predatory lender can profit not only from loan terms stacked in his or her favor, but also from the sale of a foreclosed home, if a borrower defaults.