Sentences with phrase «loans during the housing bubble»

«Many subprime loans during the housing bubble were made by nonbank mortgage brokers.

Not exact matches

In the mad scramble for loan creation during the final phase of the Housing Bubble, the government created an environment of essentially free money by allowing the big agencies, Fannie Mae and Freddie Mac (or Phony and Fraudie, as I often affectionately refer to them), to securitize loans to the bottom of the barrel risks with crazy terms like no money down and incredibly low «teaser» interest rates.

In addition to the concern about lenders» strong incentives to offer predatory loans, they argue that such «teaser» payment loans have the risk of boosting housing bubbles as they are popular with both borrowers and lenders, who expect housing prices to continue to rise during bubbles.

FHA guidelines have always allowed lower down payments and looser credit qualifications than conventional financing; but during the freewheeling time before the housing bubble burst in 2003 - 2007, conventional loans were just as easy to obtain and many had zero - down - payment options so FHA loans were less popular.

But much like the country's private lenders during the first several years of the present century, Fannie Mae and Freddie Mac's drive to increase profits helped create the housing bubble (thanks to lowered underwriting standards, approvals for subprime borrowers and the bundling of loans into mortgage - backed securities).

However, during the housing bubble, many loans issued to subprime borrowers have since gone into default.

During the housing bubble people took loans against their equity and bought a boat.

The couple's interest - only, 100 percent - financed loan was a classic bubble product that became a formula for foreclosure during the housing crash.

The lender recognizes that the borrower «could» be taking home more money than the IRS taxes, however, during the housing bubble of the 2000s many brokers used «no doc» loans as a tool to qualify a borrower even though they knew the borrower did not meet income requirements (thus the name «liar's loan» came to be).

The underlying assumptions that support caveat emptor, the idea that sellers and consumers occupy equal bargaining positions and that they share access to the same information governing a loan product's quality or suitability, were simply untrue at the height of mortgage lending during the housing bubble.