Sentences with phrase «repay if the borrower defaults»

Entitlement is basically the dollar amount the VA pledges to repay if the borrower defaults.

Veterans Administration: The government agency that offers benefits to Military Veterans and in the case of home loans, offers a guarantee that a portion of the loan will be repaid if the borrower defaults.

Not exact matches

If banks take deposits and hoard cash, the economy could contract, and if banks lend without regard for the borrower's ability to repay, high defaults could cause credit to seize uIf banks take deposits and hoard cash, the economy could contract, and if banks lend without regard for the borrower's ability to repay, high defaults could cause credit to seize uif banks lend without regard for the borrower's ability to repay, high defaults could cause credit to seize up.

Loans that have been in default can be consolidated after three consecutive monthly payments have been made or if the borrower agrees to repay the consolidation loans under an income - driven repayment plan (where the payments are based on the income of the borrower).

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.

If a loan is in default, the borrower can only consolidate the loan under two conditions: the borrower must agree to repay the loan under an income - driven repayment plan, or make payment arrangements with the current loan servicer.

The co-signer doesn't just sign on the loan, he or she is making a promise to repay the loan if the borrower defaults.

A loan is considered defaulted if the borrower fails to repay it on the terms that were agreed to in the loan contract.

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

If a loan is in default, the borrower can only consolidate the loan under two conditions: the borrower must agree to repay the loan under an income - driven repayment plan, or make payment arrangements with the current loan servicer.

Cosigner A cosigner on a loan is a coborrower and is obligated to repay the debt if the primary borrower defaults on the debt.

If the debt - to - income ratio is more than 2, the borrower will have significant difficult repaying the debt and may be at high risk of default.

This means that missed loan payments or defaults will appear on your credit report if the borrower doesn't repay.

When a parent or grandparent cosigns for a student loan, they are responsible for repaying it if the primary borrower defaults.

So for the loans which are underwritten to, say FNMA Guidelines, investors know there is a certain underlying credit quality for the MBS that they purchase and even if a borrower defaults on their mortgage, the investor will be fully repaid.

For FFEL and Direct Loans, default occurs if a borrower fails to make a payment for 270 days if the loan is repaid monthly.

Effective July 1, 2010, borrowers who are in default may consolidate into the Direct Loan program immediately (without any payments prior to consolidation) if they agree to repay the debt using income - contingent repayment or income - based repayment.

Advocates for programs that allow borrowers to repay loans based on income hope these programs will cut default rates because if you're not making money, you don't need to repay your loan.

These benefits are possible because the VA promises to repay at least a quarter of the loan amount if one of its borrowers defaults on the mortgage.

Including a cosigner on a loan decreases the risk for the lender because the lender has another person who is obligated to repay the loan if the borrower defaults.

If the borrower misses payments or defaults on the loan, the cosigner is required to take responsibility for making the payments and repaying the remaining balance.

Co-signer: A person who agrees to share credit responsibilities and repays the debt if the original borrower defaults.

Forbes contributor Mark Greene explained if lenders follow this «ability - to - repay rule» and demonstrate they did everything they could to determine a borrower was reliable, they won't have to buy back the loan even if the borrower defaults.1 The more proof a lender has that he or she did everything possible to make sure the borrower was in good financial standing, the more protected that lender will be.

They are protected from default if either the borrower or a future owner fails to repay the loan.

Most personal loans lack collateral — property that can be taken if the borrower defaults — so they rely on the integrity of the borrower to repay the loan's principal and interest.

The government's guarantee of the mortgage loans assured investors that if the borrower defaulted, they would be repaid in full.

The co-signer, who is typically a close friend or relative of the student, is legally obligated to repay the loan if the borrower defaults.

Loans that have been in default can be consolidated after three consecutive monthly payments have been made or if the borrower agrees to repay the consolidation loans under an income - driven repayment plan (where the payments are based on the income of the borrower).

Recourse — If the borrower defaults on a loan, the borrower pledges all of their other assets to repay the loan.

With a VA loan, the federal government guarantees that a portion of the loan will be repaid even if the borrower defaults on its terms.