Subprime loans are loans made by institutions to individuals who do not meet the industry standards for a desirable loan client.
Lenders such as banks and mortgage companies are able to shift much of the risk of loans they make by selling the debt off to investors and investment banks in the form of collateralized mortgage obligations and other forms of securitized debt.
This paves the way for lenders to adopt more liberal guidelines around who can receive a loan for their home purchase and so forth. A thorough banker who is preserving the financial stability of his employing institution will perform due diligence to prove that a client can meet the repayment schedule for the loan by showing adequate cash flow and credit history.
A lender who is less concerned with the impact on their employing institution, and more concerned with the fact that several other lenders in town have policies even more lax than their own, is going to be more likely to help infuse the economy with debt that is a riskier asset than it may appear.
The contracts written with CMOs, for example, with impressive yields tied to a concrete, everyday asset like home mortgages, are quite enticing for individuals and institutional investors alike. This overweighting in assets which were riskier than their ratings let on was a big factor that caused the crash of 2007-2008.
Keoghs can hold a wide range of investments, and it will mostly depend on your plan trustee
A Hybrid REIT blends the two major classes of REITs (Equity REITs and Mortgage REITs) to give the investor increased...
The High-Low Index is an observation of the number of stocks which hit 52-week highs or lows in the current day
Freddie Mac is a government-sponsored company which purchases mortgages from banks and securitizes them for sale
Adjusted EBITDA is a non-GAAP method of making earnings valuations a little more standardized between companies
Refinancing a mortgage means to get a new mortgage agreement with a different interest rate
Americans working abroad often enjoy a few tax advantages. One of which is the Foreign Earned Income Exclusion
The Commodity Channel Index can be used for ETFs, stocks, and so on. It basically displays the relative daily difference
The 1045 is meant to be the quickest way to get a carry-back refund
The most common way to buy Bitcoin is through online services such as Coinbase, Bitpanda, Bitquick, Localbitcoins, and Spectrocoin