Credit
Understanding Credit Enhancement Programs
Understanding Credit Enhancement Programs A method whereby a company attempts to improve its debt or credit worthiness. Through credit enhancement, the lender is provided with reassurance that the borrower will honor the obligation through additional collateral, insurance, or a third party guarantee. Credit enhancement reduces credit/default risk of a debt, thereby increasing the overall credit…
Read MoreLoan to Value Ratio
A Loan to value ratio (LTV) tells you how much of a property you own – and how much you’re borrowing. The ratio is used for several types of loans, including home and auto loans (both purchases and refinances). The LTV ratio is calculated by dividing the amount of your loan into the total value…
Read MoreUnderstanding Deficiency Judgments
Deficiency judgment are court orders that make you personally liable for unpaid debt. They are often associated with foreclosures, when a home’s selling price is not enough to cover the loan balance. They can also be an issue with automobiles taken in repossession. Let’s take a closer look at what deficiency judgments are and if…
Read More6 C’s Of Commercial Credit
What You Need To Know Regarding Commercial Credit . Commercial lenders are in business to make money. Consequently, when a commercial loan lender lends money it wants to ensure that it will be paid back. The lender considers, the 6 “C’s” of Credit each time a loan is considered. 1. Capacity Capacity to repay is…
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