Exact(16)
Investors fear banks' losses on loans will continue to worsen, particularly if unemployment keeps rising.
Equally important, because the government is backing the companies, their buying and selling of loans will continue.
But environmentalists, among others, are hoping that the recent interest in such loans will continue, even if fuel prices drop.
While bankers have not suffered big losses on mortgages for single-family homes, they expect that losses on delinquent commercial real estate loans will continue to rise.
But growing competition and the costs of writing off bad loans will continue to depress job creation, wages and prices, limiting consumer spending and any chance for a full-blown recovery.
Most economists predict that the number of troubled loans will continue to rise this year as more mortgages are adjusted to higher interest rates and home prices decline further.
Similar(44)
The other risk for lenders remaining on their SVR is that if property prices keep falling, they will find it even harder to get a new mortgage (as the size of their loan will continue to increase relative to their property's value).
During a deferment, the government will cover the interest on your subsidized loans, but if you have unsubsidized loans (including PLUS loans), interest will continue to accumulate.
Tilson flatly predicts a "high level of losses in housing prices for two years to come and then a slow decline for another three years before returning to normal". Very precisely, the value investor defended his bearishness by displaying figures on the number of prime loans, alt-A mortgages and commercial real estate loans that will continue to deteriorate.
"There are real questions about whether loan providers will continue to participate in the federal loan program as a result of the cuts," Mr. McKeon said.
If you're hoping for student loan forgiveness, there's no guarantee that student loan forgiveness will continue in its current form, or at all.
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