Sentences with phrase «than a qualified default»

To combat these added fees, Mike Volo, senior partner at Cammack, suggests offering the managed account on a voluntary basis, rather than a qualified default investment alternative (QDIA) or another default option.

Not exact matches

Even worse, researchers found more than half of borrowers in default would qualify for an income - driven repayment plan that would significantly reduce their monthly payments.

• Unlike in the U.S., underwriting standards for qualifying mortgage borrowers in Canada have been maintained at prudent levels resulting in mortgage borrowers here being much more creditworthy; • Canadian mortgage lenders never offered low initial «teaser» rate mortgages that led to most of the difficulties for mortgage borrowers in the U.S.; • Most mortgages in Canada are held by their original lender, not packaged and sold to third parties as is typical in the U.S., and consequently, Canadian mortgage lenders have a vested interest in ensuring that their mortgage borrowers are creditworthy and not likely to default; • Only 0.3 % of Canadian mortgages are in arrears versus 4.5 % in the U.S. and what even before the start of the U.S. housing meltdown two years ago was 2 %; • Canadians tend to pay down their mortgage faster than in the U.S. where mortgage interest is deductible from taxes, which encourages U.S. homeowners to take equity out of their homes to finance other spending, a difference that is reflected in the fact that in Canada mortgage debt accounts for just over 30 % of the value of homes, compared with 55 % in the U.S.

Even worse, researchers found more than half of borrowers in default would qualify for an income - driven repayment plan that would significantly reduce their monthly payments.

8) Mortgage Default Insurance If you've qualified for a high - ratio mortgage, (this is normally the case for home buyers with less than a 20 % downpayment), chances are good that you'll require mortgage default insurance from your Default Insurance If you've qualified for a high - ratio mortgage, (this is normally the case for home buyers with less than a 20 % downpayment), chances are good that you'll require mortgage default insurance from your default insurance from your lender.

Financial research and analytics firm Cerulli Associates finds managed account programs are more resistant to fee compression than other commonly used qualified default investment alternatives.

The VA guarantees a portion of the loan amount to the lender in case of default to lessen the risk and enable them to offer veterans more favorable loan terms than they could otherwise qualify for.

Due to the greater risk of default in cases where the buyer has less than 20 per cent as a down payment, the availability of default insurance results in lenders being willing to provide larger mortgages to individuals who would not otherwise qualify for a mortgage at all.

Borrowers who defaulted on their mortgage during the recent recession may fare better at qualifying for a loan again than those who defaulted on multiple credit accounts and auto loans too, according to a study by TransUnion conducted in 2011.

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.