As it is now, a large portion of the FHLBs may no longer deserve their AAA ratings because of the losses they may take from
risky mortgage assets.
Not exact matches
This failure of systematic thinking is why they've responded to the devastating consequences of a yield - seeking
mortgage bubble by encouraging yet another yield - seeking bubble, but this time in virtually every class of
risky assets.
FGIC and other bond insurance companies have been hobbled by their expansion into guaranteeing
risky collateralized debt obligations (CDOs) and
asset backed bonds, markets that have been hammered by rising
mortgage losses.
The defendants managed the IBF and IPBF in the same way and invested them both in
risky, highly leveraged
assets, including, among other things,
mortgage - related
assets.
Money - market funds, which are big buyers of commercial paper, are spooked by possible contagion from subprime
mortgages, or
risky home loans granted to low - credit home buyers, and are shunning commercial paper backed by
assets.
But other
mortgage experts pushed back on the idea that a digital
mortgage that uses automated verification of a borrower's
assets and income is more
risky than a home loan originated by a smaller institution that may rely on intangible factors.
First
mortgages are generally less
risky because they are the first to get repaid and the first to claim any property provided as collateralCollateral Property or
assets that you pledge as a borrower as a guarantee that you will repay the loan.
... Central bank demand for Agencies freed up private funds to invest in
riskier assets rather than directly financing the most
risky mortgages...
Any skill set related to the puzzle of how to revalue complex
assets based on consolidation of sub-prime
mortgages and other
risky but popular investment vehicles is a valuable line on your resume, recruiters told Ladders.
I find it interesting that people that are risk adverse always want to pay off their
mortgages when in reality, paying off
assets that are not liquid is much more
risky.
The
mortgage underwriting process determines from your credit score, income,
assets, etc. how
risky it would be to lend you money.