Sentences with phrase «so if the borrower defaults»

Maybe commissions should be paid out over the life of the mortgage, so if the borrowers default, the commisson evaporates as well.

Although peer - to - peer loan sites help evaluate risk for the lender, it's important to keep in mind that these loans are unsecured, so if the borrower defaults, you lose your investment.

Not exact matches

FHA loans are guaranteed by the government, so that the lender is paid back with federal funds if the borrower defaults.

So the real question is this: why is anybody willing to hold this low interest rate paper if the borrowers issuing it are so vulnerable to default risSo the real question is this: why is anybody willing to hold this low interest rate paper if the borrowers issuing it are so vulnerable to default risso vulnerable to default risk?

If you default on such a loan, the lender can take the collateral so such loans can be risky for borrowers.

Doing so would be very risky because such borrowers already have a habit of defaulting and if they do, there might not be enough to compensate both lenders of a registered mortgage.

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.

Created by the Federal Housing Administration, these loans are insured by this government agency, so that guarantees that lenders won't lose their money if borrowers default on their mortgage.

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.

Lenders that purchase bulk insurance do so because it means the government is behind them if a borrower defaults and the lender can't afford to cover the bill.

If you are required to contribute, the FHA program requires that borrowers are in default by the time the sale closes - so another way to think of the cash contribution is just giving back one or two of the mortgage payments that were missed.

At LoanMart, we consider it our duty to inform you about what takes place if a borrower defaults on a title loan along with all other aspects of the title loan process so that you feel equipped to make the best decision.

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.

Smith predicts that future loan documents will incorporate extendable due dates so that borrowers won't automatically be thrown into default if a loan comes due when credit markets are locked up.

Instead, the agency guarantees repayment to lenders if a borrower defaults, so that the lenders know they won't lose money on the deal, thus allowing them to offer competitive mortgage rates on loans that are easier to qualify for than conventional home loans.