Sentences with phrase «marginal borrowers»

For marginal borrowers with little in savings $ 1,800 on top of the other closing costs may be an impossible burden.

Mortgage tightening effectively pushes marginal borrowers out of the market, reducing the size of the pool of first - time homebuyers.

Credit spreads fall when conditions are stable, until enough marginal borrowers take on debts that they can't afford, and the bust phase of the credit cycle kicks in.

That in itself [DM: pushing for more loans to marginal borrowers as a matter of policy] is an interesting development.

It has led to a large amount of foreclosures, by allowing marginal borrowers to gain financing.

It should also be said the this type of loan is only for folks with a wealth of assets and not for marginal borrowers.

The second point is that more marginal borrowers are now more likely to take on a principal - and - interest loan than in the past.

That said, while 40 per cent of high - ratio borrowers opted for a 30 - year amortization over the last year, the vast majority of these borrowers could have qualified using a 25 - year amortization anyway, so this change should only affect marginal borrowers who would have been the most vulnerable to rate rises in future.

By lowering the up - front insurance cost HUD has made the FHA home loan a lot more practical for many marginal borrowers.

7) From Calculated Risk, a tale of why lenders tend to forbear with marginal borrowers that are having difficulties with their current loans.

As prime brokers, their own risk control mechanisms cause them to liquidate marginal borrowers whose margin has gotten thin.

While this in itself isn't necessarily a problem, it is suspect because the flattening of the yield curve has likely caused a slowdown in the economy and put pressure on marginal borrowers.

Because of the increasing level of cash flows necessary to service the debt relative to the economic yield on the assets, it doesn't take much fluctuation to make the most marginal borrowers question whether they can hold onto the assets.

What matters when it comes to financial stability is not what the average borrowers are doing, but what the more marginal borrowers are doing.

CMHC, bless them, have come up with 40 - year amortization, zero down mortgages for marginal borrowers and a whole new host of goodies for first - time buyers.

Unable to respond to changes in their customers» ability to pay back loans by raising their cost, many lenders have cut back on issuing credit cards to marginal borrowers.

Owners of less - successful small businesses will find bank loans tough to get because they are the marginal borrowers who are often unable to get loans when credit is scarce.

Marginal borrowers will continue to find it hard to get a mortgage, even when the job and housing markets recover.

The marginal borrower can fail with astonishing speed when higher risk credit markets begin to unwind.

In every economy, very low interest rates and unending credit supply have loaded up the marginal borrower — corporate and individual — with unsustainable debt.

Recent revelations of funding deficiencies at FHA and spiking delinquency rates for many of the marginal borrowers in the program could spell trouble for FHA borrowers as additional efforts are undertaken to shore up FHA's finances.

Finally, the willingness to make loans to marginal borrowers is really a statement that lenders are willing to make an equity investment in someone they are lending to, or some property that they are lending against.

Who, really, is the marginal borrower — the user of marginal funding — that emerges at a 0 % rate who does not emerge at a fraction of 1 %?

Alternatively, if the idea of minimum credit scores is to keep out marginal borrowers — a savvy thought for any insurance program — then lenders in this case are doing the right thing.

The worry about the interest - rate spurt seen during the past few weeks is not that it represents a huge increase in costs but rather that marginal borrowers will be forced out of the market.

Though lending institutions bear some blame for sloppy underwriting, it amazes me that marginal borrowers that are less than responsible can think that they can own a home, or that people who have been less than provident in saving, think that they can rescue their retirement position by borrowing a lot of money to buy a number of properties in order to rent them out.

«Marginal borrowers will be squeezed again and some buyers will have to defer their home purchase into the future, so they can save up that extra 5 %,» explains McLister.

«Marginal borrowers will be squeezed again and some buyers will have to defer their home purchase into the future, so they can save up that extra 5 %,» says McLister.

Finally, the willingness to make loans to marginal borrowers is really a statement that lenders are willing to make an equity investment in someone they are lending to, or some property that they are lending against.

Regarding mortgages, Fitch notes that while it's too soon to determine the impact of new mortgage rules put in place last year, «We expect that it will result in fewer loans being made available to marginal borrowers, which could reduce loan growth.

Marginal borrowers can't get it when they need it most.

And marginal borrowers or borrowers with a limited or no track record are completely shut out of the market.