Sentences with phrase «risky loan structures»
To assist homeowners with negative equity in refinancing at lower interest rates, over longer loan terms or with less risky loan structures, the government rolled out the Home Affordable Refinancing Program.
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Prices of the riskiest portions of collateralized loan obligations (CLOs) have fallen 50 % as of the end mid-December since mid-year, and are now trading at $ 0.25 for every dollar that investors have put in the structured bonds.
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).
The expectation is that mortgage refinancing a Fannie Mae loan will put responsible borrowers in a better position by reducing their monthly principal and interest payments or moving them from a more risky home loan structure (such as interest - only or short - term ARM) to a more stable product.
It may also affect the current structure of the mortgage market, in which banks mostly have focused on plain - vanilla and jumbo loans while nonbank lenders have targeted riskier borrowers, sometimes with more exotic...