The total collateral balance (inclusive of cash) is $350.5 million, compared to the note balance of $350.0 million, indicating that the transaction is
overcollateralized by $449,270.
The change reflects Fitch's observation that class B certificates typically remain well
overcollateralized even in moderate stress scenarios, thus giving reasonable assurance that certificate-holders should receive significant recovery based on collateral values alone, despite their subordinate position to the senior certificates in an EETC transaction.
Unlike residential mortgage lending, which usually permits higher LTV ratios, (205) commercial mortgage lending generally requires lower LTV ratios, which frequently causes the loan to be
overcollateralized (206) by the CRE that secures the loan.
substitutes are typically
overcollateralized. As Holmstrom states this
loan is
overcollateralized. The terms of unsecured credit, however, will
loans that are not initially
overcollateralized are inherently risky,
(19) If housing prices are certain to increase, even subprime mortgage loans will become
overcollateralized over time.
Because of the guarantee that FICC provides, GCF Repo trades are not
overcollateralized (unlike most repos).
An increase in stock prices, and thus a consequent increase in the value of the collateral, would then cause the loans to become
overcollateralized. (60) In October 1929, however, the collapse in stock prices caused massive failure as many of those risky borrowers defaulted on the now-undercollateralized margin loans.
Home Loan Servicing Solutions is an internally managed owner of high quality mortgage servicing assets, predominantly mortgage servicing advances and non-agency mortgage servicing rights, which are highly
overcollateralized with historically stable net asset values.
because: (a)
overcollateralized loans are unproblematically the norm in
She fought an uphill battle to convince her carrier that the car rental company's risk was
overcollateralized.
