If the lender charges a low interest rate on mortgages to make them affordable to the
creditworthy applicant, it will lose money because the other applicant will also get the same mortgage and potentially default.
And the large merged banks are lending less even to
creditworthy borrowers, due to regulatory limitations on the loans that can be allocated to a single borrower.
The Peracchi decision now allows certain
creditworthy S corporation shareholders to get additional basis in their S stock simply by issuing an unsecured promissory note to the corporation.
Specifically, (1) the debtor (Peracchi) was
creditworthy and able to pay, (2) the note bore a market rate of interest, (3) the note had a fixed term, (4) the IRS did not argue that the note's value was less than its face amount, and (5) the note was fully transferable and enforceable by third parties, such as hostile creditors.
Privlo said it has expanded into Washington with non-QM mortgages to
creditworthy borrowers getting sidelined by traditional banks because of complex incomes.
8, Fannie Mae and Freddie Mac made it official--they were once again in the business of buying low-down-payment loans from
creditworthy borrowers.
THIS year will see
creditworthy homebuyers offered the best chance since the start of the credit crunch to buy a new home without a hefty deposit.
"This is a terrific opportunity to acquire a fabulously located retail condominium, fully leased to a
creditworthy tenant, with a singular cacht because of the neighborhood, "said Anton.
Bernanke cited a statement released by several federal agencies last November where it was emphasized that, "while rectifying past shortcomings in underwriting standards and other aspects of risk management, banks can and should continue to provide loans to
creditworthy customers."
The most recent change of the rate, which is charged on loans of one year or longer to the lender's most
creditworthy corporate borrowers, came on April 10 when it was lifted 0.05 percentage point to 2.25 percent.
