Sentences with phrase «loans risky borrowers»

Deutsche Bank did not directly give loans to borrowers here in the U.S. Instead, it bought MortgageIT who made reckless loans risky borrowers.

Not exact matches

Borrowers who don't meet those requirements would have access to alternatives including a principal payoff option on a small, short - term loan or less - risky longer - term loans.

A lien is one piece of data that separates a strong borrower from a riskier borrower, so lenders want to have this information before they approve a loan.

For the average borrower, it's risky to take out a balloon loan with the assumption that your future income will grow.

The point is that they are much riskier than a traditional fixed - rate mortgage loan, where the borrower chips away at the principal from day one.

Margins tend to be higher for riskier loans, less creditworthy borrowers, and shorter term loans.

These loans can be risky for some borrowers, as payments spike after a certain period.

While interest rates on government loans are one - size - fits - all, private lenders will loan money at lower rates to borrowers they consider less risky.

Lenders claim that because repayment is contingent on the borrower winning the case, the product they offer is especially risky and shouldn't be classified as a loan.

Approved loan applicants are assigned a credit rating, which determines the interest rate charged on any loan they receive, and provides clues to investors about how risky a borrower that person is.

Margins tend to be higher for riskier loans, less creditworthy borrowers, and shorter term loans.

The point is that they are much riskier than a traditional fixed - rate mortgage loan, where the borrower chips away at the principal from day one.

Loan - level pricing adjustments are the government's way of raising prices for «riskier» borrowers without putting a penalty to «safer» ones.

For the average borrower, it's risky to take out a balloon loan with the assumption that your future income will grow.

The FHA has said its «blueprint» for evaluating underwriting defects should reduce lenders» fears of having to indemnify the agency for losses on loans to riskier borrowers.

HELOCs generally have variable interest rates which are generally riskier to the borrower than fixed rate loans.

These loans can be risky for some borrowers, as payments spike after a certain period.

Lenders consider mortgages to be riskier if the borrower's down payment is smaller, with conventional loans requiring at least 20 % down to avoid the added monthly expense of private mortgage insurance.

Riskier investments like second mortgages, or where a borrower has no income, the fees will be higher than for a bank loan.

The FHA loan program, as an example, caters to the «riskier» borrowers, and offers flexibility on credit qualification and down payment requirements.

Loans with higher LTVs are riskier because the borrower has put down less of their own money towards the purchase and theoretically has a higher chance of defaulting.

I have a hard time imagining many lenders will want to place a second behind one of these loans, for a risky borrower.

But because this is a risky loan for lenders to make, many lenders will ask that the borrower apply with a creditworthy cosigner.

«Those who have criticized low - down payment lending as excessively risky should know that if the past is a guide, only a narrow group of borrowers will receive these loans, and the overall impact on default rates is likely to be negligible.

Finally, debt consolidation loans will not address risky behavior, and they may actually exacerbate debt problems by providing the borrower with excess capacity to borrow.

Riskier mortgages like second mortgages or where the borrower has no income tend to attract higher fees compared with traditional bank loans.

When you apply for a credit, whether it's an auto loan, a credit card, a mortgage or a personal loan, lenders want to know how worthy or risky you are as a borrower.

Borrowers who sign up with LendingClub can borrow as little as $ 1,000 or as much as $ 40,000 in an unsecured loan, and the APR varies wildly based upon how risky LendingClub considers the borrower.

If most borrowers who file for bankruptcy don't have the money to repay their debts, a more restrictive bankruptcy policy isn't going to make the loans less risky.

It is certainly true that private student loans, made without government guarantees, can be risky for both creditors and borrowers.

Loan preapproval isn't a guarantee no matter the loan type, but VA borrowers as a group aren't a risky propositLoan preapproval isn't a guarantee no matter the loan type, but VA borrowers as a group aren't a risky propositloan type, but VA borrowers as a group aren't a risky proposition.

This is what makes the loans to be less risky to lenders and this encourages them to be willing to grant the loans to borrowers under less stringent conditions.

The program functions by (1) putting a cap on the upward rate price adjustments that can be made for «riskier» loans (borrowers offering a low down payment and middling credit) and (2) reducing the mortgage insurance requirement.

A qualified mortgage is one that is free from terms that can prove risky to borrowers, like loans that span more than 30 years or payment structures that allow the borrower to pay less interest than is actually owed (which causes the loan to be more expensive over the long run).

It shot up to 775 in 2009, as lenders avoided riskier loans, backing away from all but the most qualified borrowers.

At a time when so many other types of mortgages seemed to have failed, fixed rate FHA home loans have grown in popularity as borrowers shy away from more risky alternatives.

A down payment represents «skin in the game» for the borrower, and removal of that initial buy - in makes the loan riskier.

Lenders that had no problem saying «yes» to risky loans now have no problem saying «no» when these borrowers need help.

The traditional home equity line of credit — an initially cheap but financially risky loan that allows borrowers to make interest - only payments for years — is all but dead at the nation's leading mortgage lender.

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

For the riskiest borrowers, even LendUp offers rates that can reach 300 % on an annualized basis — but LendUp gives these borrowers a way to reduce the rates to as low as 29 %, and improve themselves at the same time, by taking online classes, repaying loans in a timely manner, and referring others.

Today, large balance borrowers are increasingly likely to be parents and independent undergraduate borrowers — the government places lower limits on the loans that undergraduate borrowers who are dependents can take — whose economic outlook tends to be riskier and whose rising debts consume a larger share of their income.

As an Alt - A lender, IndyMac's business model was to offer loan products to fit the borrower's needs, using an extensive array of risky option - adjustable - rate - mortgages (option ARMs), subprime loans, 80/20 loans, and other nontraditional products.

A loan to a borrower with high credit may be less riskier but, a loan to a borrower with low credit brings in highest return.

Unlike conventional home loans, FHA loans are government - backed, which protects lenders against defaults, making it possible to for them to offer prospective borrowers more competitive interest rates on traditionally more risky loans.

Making a so - called «qualified mortgage» (QM), which can't have riskier features like interest - only payments or balloon payments, protects a mortgage lender from liability if it sells the loan to investors and then the borrower defaults.

The uncertain financial climate of today is a risky place for those who are looking to borrow money, but the unsecured loan lessens the risk for many borrowers...

«We ascribe the higher levels of delinquencies in the 2006 vintage to the increasingly riskier credit profile of borrowers, characterized by an increasing proportion of highly leveraged homeowners who obtained their loans through limited verification of income sources and with little equity in their homes,» the rating agency said.

These grades are much like credit scores as they determine borrowers» interest rates and tell investors how risky loans are.

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.