What Banks Offer home Equity LoansWhy banks offer equity loans at home
: Market oracle ::
Whilst Kevin's " " from previous times discussed the effects of lower real estate property rates on Fannie Mae (FNM) and Freddie Mac (FRE), for me an equally big, if not bigger problem is the effect of these lower rates on real estate loans portfolio. Most of the loans currently granted to owner-occupiers in 2003-2007 are now effective uncollateralised, with the overwhelming bulk of these loans being secured.
Not only are these lending Portfolios poorly priced for exposure, they are also likely to have unparalleled losses well above their present level. LTV charts below are taken from a March issue of Fitch's March 2007 LTV Review, reflecting December 31, 2007. Others factors Publishers with a higher first pledge exposure are likely to have better key lending ratios as they have a senior right to the realisation value of the real estate.
It is not only in the stratosphere that an LTV's first pledge position of many of the banks that offer these loans is unusually weaker. "Most of these loans are now effective unsecured". And if so, at what cost? The banks felt the response was far too belated.
With its improved debt collection service, the CGI supports banks in the management of losses and foreclosure auctions of mortgages and owner-occupied homes.
GIB.A (TSX: GIB.A; NYSE: GIB), a leader in information technologies and commercial processeservices, today announced the release of the latest release of its end-to-end collection and data retrieval solution CACSÂ Enterprise, now with improved mortgages and home equity collection assistance that includes reduced losses and isolation pricing and handling. The CACS has added a number of new functionality and capabilities, among them assistance with loan handling for damage reduction and training programs assessment, barrier sheets for real estate appraisal and stock analytics, and advanced client layer handling capabilities.
Additionally, the new version of CACS provides live scripts that lead collector through the survey cycle, resulting in a more unified approach to customers, and provides utilities to facilitate the transformation of legacy charge-off accounting into CACS enterprise and disaster recovery accounting. CGIâ??s latest version is built on the hugely popular CACS Enterprise offering, which provides advanced workflow capabilities necessary to maximise the efficacy of a companyâ??s harvest and restore-handled operations, optimise the use of harvesters, effective third-party management and accelerate the collection of vulnerable Accounts.
Tight integration of debt collection and remediation processes, whether administered internally or through external parties, helps companies mitigate loan loss and minimise costs. Since more than 30 years now, CGI provides IT and operational processing solutions to banks around the globe, among them 21 of the 25 leading US banks and 45 of the 50 leading banks in America and Europe.
Our solution offerings for banks focus on corporate and financial services, offering end-to-end asset and liability planning, retail financing, enterprise intelligence/data warehouse and client relationships. The CACS has been deployed at more than 100 companies around the world, among them seven of the top 10 U.S. banks and six of the top 10 banks in the world, as well as countless telecom, utility and retail companies and state and municipal government agencies.