And in this case, it financed guarantees of credit for credit guarantors.
The Mortgage Bankers Association, for example, recommends the creation of "mortgage-credit guarantor entities" with federal charters and overseen by a federal regulator.
Hence the sudden guarantee for any struggling bank.A big con, nonethelessHowever, this offer is only as good as the credit of the guarantor.
With sufficient warning the amount could be made up before the guarantor's credit record is tarnished.
And it stands to lose much: support in the Middle East for its actions in Afghanistan after the Sept. 11 attacks and credit as a responsible guarantor of the global order.
In January, Mr. Dinallo asked leading banks to inject more capital or provide lines of credit to the bond guarantors that would allow them to keep their top ratings.
Landlords are demanding extra cash up front, solid credit records and local guarantors who earn around twice the income threshold and are willing to bare their finances to both strangers and kin.
He led the session on Wednesday and suggested that the group move in as little as 48 hours to get a deal done ahead of any downgrading of the bond guarantors by credit ratings firms.
Most issues are guaranteed by banks, although nonguaranteed bonds are becoming more popular because the better borrowers may be at least as good credit risks as the guarantors.
This time, it was a scathing analysis questioning the sterling credit rating of MBIA Inc., a guarantor of bonds and other financial instruments.
But this does not mean they can ask your relatives to repay any debts, unless they are joint borrowers on the loan agreement or they have acted as a guarantor for the credit.
