Moreover, for some originators, fees tied to loan volume made loan sales a higher priority than loan quality.
The reassessment and resulting increase in the attention to loan quality should help prevent a recurrence of the recent subprime problems.
In these deals Countrywide made representations and warranties about things like loan quality and committed to repurchase the loans if those representations turned out to be bogus.
In this way, loan quality improves even if the economy doesn't.
They soon focused on a much smaller bank, also well-run and having similar financial characteristics in such areas as return on equity, interest margin, loan quality, etc.
And Pandit has to brace Citi for the looming deterioration in loan quality, which is spreading from mortgages into credit cards and other types of consumer loans.
This is a form of heightened scrutiny, though informal and less severe than some other options, and looks at a bank's capital and risk management, loan quality and liquidity.
Some of the soured assets Beal purchased at fire-sale prices were residential mortgage-backed securities that were sold in deals in which banks made representations and warranties about loan quality and promised to repurchase those loans if the representations were no good.
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Yet despite the widespread expectation of impending loan-quality problems, the big banks reduced impairment charges in Q3.
Continual growth has papered over these loan-quality issues.
In America and Germany, where many subprime loans have ended up on banks' balance sheets, the liquidity crisis has been managed smoothly, whereas in Britain, with low arrears, a bank with a high-quality loan book nonetheless found itself in a situation where its retail depositors temporarily felt threatened.
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The financial sector is working its way back to health, and the second quarter should show distinct signs of improvement, but investors need to keep a sharp eye out for the usual suspects that have marred results for the past few years: loan losses and credit quality.
That is one reason why the credit quality of their loan books has been deteriorating sharply.
Also helping banks is improved credit quality as burdensome loan portfolios have been offloaded since early 2009.
With the world economy looking shaky, signs are growing that the quality of their loan books is falling.
We were repeatedly advised that liquidity in wholesale markets depended on lending quality: good loan books would continue to attract funding when bad loan books began to default.
Alex Pollock of the American Enterprise Institute thinks that securitisers should be required to guarantee the quality of their loan pools, as are America's government-sponsored mortgage giants, Fannie Mae and Freddie Mac.
The quality of the loan approval is wholly dependent on the integrity of the information provided by the borrowers, filtered by the loan officer and used to construct the original electronic loan approval.
Strikingly, the Fed's loan-officer survey showed that 70% of respondents expect the quality of their credit-card and other consumer-loan portfolios to get worse.
The SDLP's Declan O'Loan said it was a high quality and important report, with important benefits for the small business and social economy sectors.
In the financial sector, despite weak trading volume in Q2, results are likely to top consensus expectations on improving credit quality and large releases from loan loss reserves.
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The program removed steps in the loan process that were responsible for ensuring their quality, the complaint says.
Private equity groups seeking deals have targeted 20% to 60% discounts on the loan sales, buying collections of low-quality, performing and non-performing loans, according to DTZ.
However, Darlington did not have to wait long for their second goal, Hodgson again involved with a high-quality pass converted by on-loan Newcastle striker Richard Offiong.
Better credit quality is also allowing banks lower their loan loss provisions.
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For higher credit quality issuers rated BB or higher, loan yields were effectively unchanged while single B rated borrowers paid roughly 50 bps more than they did in October.
The repercussions of a fall in credit quality would be felt far beyond the leveraged-loan market.
The addition, on a season's loan, of Andy Webster will give United a combination of quality, strength and poise at the back.
As a result of this deterioration in loan performance, investors have increased their scrutiny of the credit quality of securitized mortgages, and lenders in turn are evidently tightening the terms and standards applied in the subprime mortgage market.
Not only are banks watchful of credit quality, but bank examiners are very cautious worried about loan losses.
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