Tag Archives: Mortgages
CMO vs CDO
CMO vs CDO
There are several product categories within the Investment Bank and one of them is the Structured Finance Category. It is a...
Amortization
Amortization
Usually, a borrower makes a monthly payment to the lender when he/she takes out a mortgage, an auto loan, or a personal lo...
Liar Loan
Liar Loan
During the 2001-06 housing boom in the United States, they became extremely popular. The mortgages which were issued to borro...
FICO Score
FICO Score
Credit scores are decision-making mechanisms used by lenders to assist them in assessing how likely the borrowers are to rep...
Securitization Process
Securitization Process
The securitization process is mainly used by banks and other financial institutions to grant more loans to the p...
Fixed-Rate Mortgage
Fixed-Rate Mortgage
Fixed mortgage rates refer to a home loan that has a fixed interest rate throughout the term of the loan. This mea...
Mortgage-Backed Security
Mortgage-Backed Security
When a bank provides loans to its customers, the bank also demands collateral from its customer. Mortgages bac...
Prepayment Risk
Prepayment Risk
Prepayment is the early payment of a loan by a borrower either in part or full. This happens when there is a decline in...
Ninja Loan: A Brief Overview
Ninja Loan: A Brief Overview
“NO INCOME, NO JOB, AND NO ASSET” is a very popular saying that always goes with the term NINJA LOAN (also...