Morningstar cited a large number of loans that are current but may default in coming months since they may not be able to secure adequate take-out financing at balloon maturity
The delinquency rate is expected to rise in coming months, however, as the 2007 vintage loans that were originated under the weakest underwriting standards start to reach their five-year balloon maturity
Specifically, we refinanced our existing 2005 credit facility under favorable terms and ahead of the $600 million balloon maturity
in October 2012.
2 million 2010 non-housing TAB BANs structured with a balloon maturity
in fiscal 2017.
We also cannot rule out additional store consolidation, closings and potential bankruptcies along with growing balloon maturity
default risk as retail collateral continues to suffer from the experienced decline.
Concerns include the limited seasoning of the mortgages, the fact that 100% of the mortgages have a balloon payment coupled with the extension advisor concept and the balloon maturity
concentration, with 91.
The BAN was structured with a balloon maturity
in fiscal 2017.
Also considered in analyzing these classes were: California's recessionary economy (60% principal concentration) shows signs of stabilization; 15% of expected losses are due to earthquake damage not likely to reoccur in the near term; and 94% of the loans have fixed rates or rates with low caps, so the current rise in interest rates should not, of itself, trigger loan defaults prior to balloon maturity
Unlike ARMs - another low-cost alternative to fixed-rate mortgages (FRMs) - a borrower's monthly payments are known with certainly, out until the balloon maturity
date, from the moment the loan is originated.
Society previously agreed to a five year extension on an $8,000,000 Segment "B" Note at a fixed interest rate of 8 1/2 percent, with a fifteen year amortization schedule and a balloon maturity
Assuming a $17 million planned borrowing, MADS (excluding a $9 million balloon maturity
on a bank note due in 2014) as percent of revenues amounts to 3.
The notes have a balloon maturity
due on March 1, 2014 with semiannual interest payments due on each March 1 and Sept.