Sentences with phrase «poor quality of the loans»
By reading the complicated prospectuses of many of the MBSs on the market, he realized the poor quality of the loans that were packaged in these securities.
http://www.financialcanadian.com/ Not exact matches
That came after the company had jumped into mortgage - backed securities, a complex package of debts that often meant higher margins for banks, yet often included poor quality loans.
That structure enabled some of these securities to gain high credit ratings even when the average quality of the underlying loans was poor.
By the end of January, the Italian government managed to strike a deal with the European Commission (EC), which allowed the country's lenders to offload their poor - quality debt to private investors, along with a government guarantee to protect buyers of bad loans — but which would cover only the safest portions of the loans.
Consolidation of federal loans can also get rid of some poor qualities of student loans.
In 2010 between 22 % to 30 % of its loans were considered to be of poor quality, but only 50 loans with deficiencies were self - reported to HUD, Justice said.
Moreover, something that gets lost in the arguments about credit quality is that the second - best predictor of mortgage default was how much skin in the game these buyers had, and even if Canada is not as risky as the US on lending to people with poor credit scores, we are awash in high loan - to - value lending (with its explicit government backing).
They came up with $ 4.5 billion in additional funds to support the swaps and convince the counterparties (a number of European banks), whose poor quality loans were «insured» by the swaps, to hold off on taking further action.
And even more dangerous during the bubble was the excessive use of leverage (all those poor - quality loans).
«Investigations since then have revealed that many banks were aware of the risks associated with the housing bubble but continued to package poor quality home loans and sell them, collecting hefty fees along the way,» CNNMoney reports.
The typical warning signs — excessive debt levels, poor quality loans, exponentially increasing home prices, rising vacancy rates and / or poor affordability compared to the past, and a high number of internet searches on house flipping — are not present.»