Because these borrowers had filed Chapter 13 bankruptcies to try to keep their homes, the erroneous amounts supplied by Countrywide were also filed with the courts.
If the borrower has an honest appearance, the success rate is higher; on the other hand, these borrowers have a high credit rating and a low default rate, which is believable.
First, because the borrowers had little chance of ever actually paying off their debts (because their underlying businesses were so weak), it kept Japan's economy from making the adjustments necessary to start growing again.
That's because many borrowers have a credit score below what is considered "prime," according to Experian, one of the major credit-reporting agencies.
From the outset, jumbo loans may simply experience fewer defaults than conforming mortgages, partly because their borrowers have higher credit scores.
The Borrowers Facing Ruin Under a Pile of Fees First Alliance says it charges high fees because its borrowers have less-than-perfect credit records and are more likely to default on their loans.
So-called no-doc loans — often used by seasonal or self-employed workers who have a harder time proving their income — have also been called "liar loans," because some borrowers have been known to exaggerate their earnings.
Some mortgage executives have complained that these loans are more complicated than others, because borrowers have to complete an energy audit of their homes and use an appraiser with expertise in evaluating energy-efficient properties, among other things.
Such loans are considered riskier because borrowers have no equity to lose if they stop payments.
Such loans are considered more risky, because borrowers have no equity to lose if they stop making payments.
