Definition of 'Hard-To-Borrow List'
There are a number of factors that can cause a loan to be placed on the HTB List. These factors include:
* The loan-to-value ratio (LTV). The LTV is the ratio of the loan amount to the value of the property. Loans with a high LTV are more likely to be on the HTB List.
* The borrower's credit score. Borrowers with a low credit score are more likely to have their loans placed on the HTB List.
* The borrower's debt-to-income ratio (DTI). The DTI is the ratio of the borrower's monthly debt payments to their monthly income. Borrowers with a high DTI are more likely to have their loans placed on the HTB List.
* The property type. Loans for investment properties and properties in high-crime areas are more likely to be on the HTB List.
If a loan is placed on the HTB List, the lender will have to charge a higher interest rate in order to compensate for the increased risk. This can make it more difficult for borrowers to qualify for a loan, and it can also increase the cost of their monthly payments.
The HTB List is designed to protect the government-sponsored enterprises from taking on too much risk. However, it can also have a negative impact on borrowers who are trying to get a mortgage. If you are considering a loan, it is important to be aware of the HTB List and how it can affect your ability to qualify for a loan.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.