Sentences with phrase «risky loans made»

There's another time bomb waiting to explode, experts say: risky loans made to people with good credit.

Not exact matches

Today, as global markets nervously watch to see how much it will cost to save European banks from their willingness to make risky loans, critics around the world are calling for Hammurabi - style reforms to make sure financial institutions, not taxpayers, pay for future bad bets.

This arrangement makes loans to startups and existing businesses with poor credit histories less risky for the financial institution.

Small businesses failed in droves during the recession, and since then, banks have been understandably warier about making what are generally risky loans.

«The only thing that makes these loans held in portfolio risky is the government's rule.»

That might not seem very fair, but jumbo loans usually seem less risky to lenders because the people who apply for them are considered more likely to make their mortgage payments on time each month.

The bureau's rules have made it less attractive — though not illegal — for mortgage lenders to make some types of risky loans that went bad and sparked last decade's financial crisis.

For lenders, this makes student loans a less risky form of debt.

He used the example of making the decision not to lure shaky buyers into risky loans, a decision of integrity that helped Clayton Homes to remain valuable through the housing crash of the early 2000s.

Lenders view loans made to startups as risky, so they typically require some form of collateral and personal guarantee to mitigate that risk.

What we're seeing here — make no mistake about it — is not a rational, justified, quantifiable response to lower interest rates, but rather a historic compression of risk premiums across every risky asset class, particularly equities, leveraged loans, and junk bonds.

Although «securing» a loan this way can make it easier to qualify, it's also riskier for you if you're unable to make payments.

On Saturday, after loaned - out Gunners forward Yaya Sanogo had scored his second goal of the day for Charlton Athletic, in a Championship game against Reading, Claude made a rather risky pledge on Twitter.

Your credit score reduces your entire financial history into one simple number that makes it easy for companies to determine how risky it is to offer you a loan (or a postpaid cell - phone plan).

This makes FHA loans a risky proposition.

While negative amortization does indeed allow for lower initial costs, the eventual spike in monthly payments makes them more financially risky than loans on fully amortizing schedule.

There is no collateral or physical investment they can take from you, which makes the loans riskier in the eyes of the government.

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

This is to protect the lenders against possible default thereby making the loan less risky for them.

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.

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.

There is still more leverage to come out of the system, and owning companies that have made too many risky loans, or companies that need a lot of lending in order to survive are not good bets here.

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.

This is again because lenders don't like making risky loans.

By insuring home loans, the FHA makes them less risky for the lender, who is able to offer lower down payments.

But a personal guarantee makes the investment less risky to the lender because it has the reassurance that the loan will be paid.

It makes it risky for the bank to lend you money, and as a result, lenders usually turn down loan applications when you have a tax lien on your credit report.

Lenders make you pay PMI because they consider a loan with less than a 20 % down payment somewhat risky.

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

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.

Because the government does not subsidize private student loans, the rates and terms are not regulated the way they are for federal loans, which makes private loans more risky and expensive.

These DTI requirements often mean that low - income buyers don't qualify for enough money to purchase a home, or that DTIs are higher than the recommended limits, making their loans riskier.

Recent late payments make your loan look a lot riskier.

If you have a credit card, high risk personal loans added to your debt can be a risky choice to make.

Also, regulation of this industry is far from robust, making it a very risky source for getting a personal loan.

By 2005, many lenders dropped the required FICO score to 620, making it much easier to qualify for prime loans and making subprime lending a riskier business.

That makes land loans a riskier transaction for a lender.

After all, if a mortgage was going to be securitized, sliced, diced and sold to investors even before the ink was dry, what difference would it make to the bank if any particular loan was under - investigated, undocumented, and overly risky?

If you make a bunch of risky loans and chase the highest interest rates possible then your loans can be defaulted.

You must make sure that the interest payable on your new consolidated debt is fixed at a rate that you can budget for, as it is too risky getting a variable interest rate loan where the rates could rise and leave you in a more difficult position than you would have been had you not consolidated.

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.

It makes sense to go through with the loan if you're borrowing money to upgrade your home, but it is very risky if you're using it to eliminate unsecured debt like credit cards or medical bills.

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.

Whether your loan can accrue negative amortization, which happens when your monthly payments don't cover all of the interest due; recent mortgage industry changes have made this risky feature increasingly rare

This fact makes policy loans just as risky as bank loans if you aren't 100 % sure about your repayment strategy.

I can't tell you whether or not it makes sense to invest in risky second - mortgage loans and I can't tell you whether, if you choose to do so, it definitely should be done inside an RRSP.

Lenders also like to see that you have six to 12 months of mortgage payments in reserves, which makes the loan less risky for them.

While this decision was applauded by industry lobbying groups for the housing industry, it made QM loans even riskier.

Navient is accused of making billions of dollars in risky, subprime student loans to borrowers who have little hope of repaying them.