Credit Loss Ratio
Credit loss ratios are used by the financial institutions that sell mortgage-backed securities to determine how much risk they are taking on. It does this by looking at the losses a mortgage-backed security has seen in comparison to its par value.
In layman’s terms: how much is lost compared to its actual value. Like...is it worth it to lose thousands of dollars traveling across the country to buy that dope Jeep Wrangler?
But these are kind of irrelevant for normal people and investors, because the government backs most mortgage-backed securities. So to us they really don’t have any credit risk.
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Finance: What is the Equal Credit Opport...6 Views
Finance a la shmoop what is the Equal Credit Opportunity Act? alright people while the
federal government thinks everyone should have the equal opportunity to get [Men in Federal Government appear]
into debt isn't that sweet of them you know that Uncle Sam well he sure does
have a heart of gold this federal law makes it illegal to discriminate against
people who are applying for financing on pretty much anything legal based on
their age gender marital status religious affiliation ethnic or national
background or public assistance benefits your credit score however well that
still matters sorry just keeping it real
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