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hopes that with this kind of guarantee the pre- approved borrowers may never need to draw on the loans.
But some of those approved borrowers might get bad news because it is unclear whether the certifications are valid.
A national sample of mortgage loans closed in August showed an average FICO score of 734 for approved borrowers, down from an average 748 last year.
If a condo or co-op has not yet been approved, borrowers can help their cause by gathering information about the building early in the process, mortgage experts say.
However, they can retrieve this cash and lend it to companies the Reserve Bank deems "productive", at a knock-down 50% interest rate: in other words, super-cheap money for approved borrowers.
Once they've been approved, borrowers are asked to send documents to be verified.
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For refinancings in August, the average approved borrower had a 769 FICO score, up six points from August 2011.
It was supposed to help farmers to increase rice production, but the government reserved the right to approve borrowers and required BRI to pay more for its deposits than it received for its loans.
And just because banks aren't approving borrowers easily doesn't mean you can't sell your house quickly - and for what it's worth.
But eventually they want to permission other entities to step in and approve borrowers – for example, an African TelCo has a lot of information on its users that Dharma doesn't have, that could be used when deciding to approve them for a loan.
The mortgage finance Ponzi scheme was further aggravated by widespread predatory mortgage lending practices, in which "low-doc" or "no-doc" loans were approved, and borrowers' income and ability to pay were not verified.
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CEO of Professional Science Editing for Scientists @ prosciediting.com