Sentences with phrase «risky mortgages»

The settlement is intended to resolve several investigations into the bank's packaging of risky mortgages into securities.

As delinquency and foreclosure rates rose, structured finance products backed by riskier mortgage loans performed particularly poorly.

Private mortgage lenders will charge more than banks because they mainly deal with riskier mortgages.

For riskier mortgages where the borrower needs a second mortgage or has no income, the mortgage fees will be higher than a regular bank loan.

The magic consisted of turning risky mortgages into investments that would be suitable for investors who would know nothing about the underlying loans.

To cut down on risky mortgages, all lenders will be required to document and verify income, assets and credit history, which can mean more paperwork and longer processing times.

Just ask anyone who recently invested in risky mortgage - backed securities.

They are considered riskier mortgages because if interest rates go up your monthly payment will go up and you could be at risk having payments that spiral out of control.

Without rules like the conforming loan limit, lenders might extend too many risky mortgages, leading to a collapse much like the financial crisis in 2008 - 2009.

It protects homeowners by requiring they understand risky mortgage loans.

Those who can not qualify at banks must work with private lenders who will charge more than banks since they approve riskier mortgages.

People with good credit are least risky mortgage clients but the rest have to pay some fees for setting up the mortgage.

Only instead of the very strict lending guidelines that the two government - backed firms employed, private investors accepted much riskier mortgages.

This toxic combination of risky borrowers holding risky mortgages was the driving force of the housing market's demise.

They avoided taking on bigger and riskier mortgages even though they could have.

For riskier mortgages, fees and interest rates charged are usually higher than those for bank mortgages.

Because Chinese banks only have a limited ability to sell off loans as securities, they don't offer risky mortgages like those that triggered the U.S. housing debacle.

Riskier mortgages attract higher fees compared to bank loans because the lenders must cushion themselves from losses in the event you default on payments.

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.

Many felt it was merely predatory lending, offering risky mortgage programs at unreasonable costs, often pushing under - qualified borrowers into poorly explained loan programs such as option - arms and interest - only home loans, leaving them with mountains of debt.

It is one of several local and international players discussing mutually beneficial deals with banks that have favoured the less risky mortgage sector for years, but are looking for growth in business lending.

(Granted, the regulators were unaware ex ante of how risky the mortgages and MBS were.)

He would buy boatloads of credit - default swaps — or investments that served as insurance on risky mortgage debt.

As part of the deal, the Federal Reserve took the extraordinary step of issuing JPMorgan Chase a $ 29 billion non-recourse loan for the purchase of Bear Stearns» riskiest mortgage assets.

That's a contrast to last decade's housing bubble, when lenders flooded working - class communities with extremely risky mortgages.

The hedge fund famously profited during the financial crisis by investing in risky mortgage securities known as collateralized debt obligations (CDOs) while also shorting them, a maneuver highlighted in Michael Lewis's book «The Big Short.»

Banks, hedge funds, and other financial players borrowed massively to accumulate subprime mortgage - backed securities, attempting to «leverage the spread» between the higher yielding and increasingly risky mortgage debt and the lower yield that they paid to depositors and other funding sources.

The state is trying to determine whether the bank and its subsidiary, Countrywide Financial, sold investments backed by risky mortgages to institutional and private investors in California under false pretenses.

Wells skillfully weathered the financial crisis by sticking to reliable branch banking and shunning risky mortgage securities.

The Chancellor George Osborne is to give the Bank of England extra powers to curb riskier mortgages but says there is no immediate cause for alarm.

Plans by the Bank of England to cap riskier mortgage lending have been hailed as an important «insurance policy» for the UK economy.

During the financial crisis, prior to the QM rule's existence, the GSEs took a combined $ 187 billion taxpayer bailout when riskier mortgage loans that the GSEs guaranteed devalued, creating catastrophic losses.

With mortgage lenders bearing little risk when FHA insured reverse mortgage loans go south, FHA has the incentive to shore up its loan requirements for these potentially risky mortgages.

CMHC has said it's keeping an eye on «riskier mortgage activity by non-federally-regulated financial institutions»

[54] During a period of tough competition between mortgage lenders for revenue and market share, and when the supply of creditworthy borrowers was limited, mortgage lenders relaxed underwriting standards and originated riskier mortgages to less creditworthy borrowers.

Homebuyers seeking a low down payment and affordable mortgage payments can avoid risky mortgage features with FHA mortgage loans.

Although risky mortgages were at the heart of the last financial meltdown, investors were willing to look the other way when it came to mREITs because these companies paid big dividends, often yielding more than 9 %.

The negatives were strong enough to include them in Investopedia's 5 Risky Mortgage Types to Avoid.

... Central bank demand for Agencies freed up private funds to invest in riskier assets rather than directly financing the most risky mortgages...

Because the bond funding of subprime mortgages collapsed, lenders stopped making subprime and other nonprime risky mortgages.

While that can be difficult to predict, there are some familiar factors at play: As home prices continue to heat up across the country, borrowers are increasingly pursuing riskier mortgages with too - small down payments.

Six weeks after the survey was conducted, we see in the headlines that Homebuyers rush to riskier mortgages as home prices heat up, and Millennials over-extending when it comes to home buying.

A team of 55 attorneys, agents and analysts will be assembled quickly to try to speed up existing probes and launch new ones into the highly risky mortgage - backed securities that fell apart, Justice Department officials said Thursday.

When global economic turmoil pushed investors to seek a safe haven, they avoided CMBS because of the perception that the originators had included riskier mortgage loans in them.

Federal investigators allege that Bear Stearns issued risky mortgage - backed securities in 2006 and 2007, which resulted in $ 22.5 billion in losses to investors.

He added that in a fully private market, financial institutions with FDIC - backed deposits would focus more on optimizing their profits in a noncompetitive banking industry, and potentially fostering new, risky mortgage products that place taxpayers at risk, rather than products that would be in the best interests of consumers and the nation's economy.

Source: «Wells Fargo to Pay $ 85 Million to Settle Charges That it Steered People Toward Risky Mortgages,» Associated Press (July 20, 2011)

S&P knowingly inflated its ratings of risky mortgage investments, the Justice Department said.