Review Mortgage Lenders

Flex Mortgage

Flexible mortgages help debt problems

Britons are feeling particularly positive about flexible mortgages at present, as they see them as a good way to ward off debt problems. This is ...

Are 40-Year Mortgages Really a Thing?

Wondering how to squeeze your monthly mortgage payment as low as it possibly can go — and then squeeze it some more? A 40-year mortgage is one way to do that.

In theory, there’s a lot to like about a 40-year mortgage. Structuring the loan over 40 years — rather than the more typical 30 years — may help borrowers qualify for a slightly larger loan amount or shrink monthly payments. Both prospects have particular appeal where real estate prices are high and borrowers want to qualify for as much as possible.

The disadvantages are costly for home buyers, however. For one thing, you’re making interest payments for 10 more years.

For another, when a mortgage is stretched over 40 years, it takes longer to build equity in a home. That increases the odds that real-estate prices could drop, leaving you owing more on the mortgage than the home is worth. To cover that risk, 40-year lenders charge a slightly higher interest rate, says Keith Gumbinger, vice president of HSH.com, a mortgage information company.

Direct Issuance is Here - A New Paradigm for Single Asset Single Borrower (SASB) Securitization

A standalone securitization of a portfolio of properties closed in June. To our knowledge, this was the first transaction in recent memory done in a direct issuance format. In this case, direct issuance means that the sponsor organized the lender and the depositor as well as a borrower and crafted the loan between the lender and borrower, which was simultaneously closed and funded by the bond proceeds from the securitization at closing. An additional unique feature in this transaction was that the sponsor met its obligations under the risk retention rules with a horizontal cash deposit equal to 5% of the fair value of the certificates. More on this later.

In this annoying new world of risk retention, the direct issuance model embodied in this transaction can be a paradigm for transactions in the SASB space.

The positives and negatives of this transaction are:

On the plus side:

The borrower has materially increased control over the structure of its loan.

Who should get a flex pay mortgage loan?

So my husband and I have found a home that we really love but its out of our price range at the current moment. I have a job in September on hold when I graduate from college and we will be able to afford the house then, but it will probably be gone.


Those loans are generally gone. They are certainly gone if you also don't have a down payment.

The reason they are gone is that they were too high risk for the average person to correctly handle.