Payday loan

A payday loan (also called a payday advance) is a small, short-term unsecured loan “regardless of whether repayment of loans is linked to a borrower’s payday”. The loans are also sometimes referred to as “cash advances”, though that term can also refer to cash provided against a prearranged line of credit such as a credit card. Payday advance loans rely on the consumer having previous payroll and employment records. Legislation regarding payday loans varies widely between different countries and, within the USA, between different states. To learn more about payday load please visit site.

To prevent usury (unreasonable and excessive rates of interest), some jurisdictions limit the annual percentage rate (APR) that any lender, including payday lenders, can charge. Some jurisdictions outlaw payday lending entirely, and some have very few restrictions on payday lenders. Due to the extremely short-term nature of payday loans, the difference between nominal APR and effective APR (EAR) can be substantial, because EAR takes compounding into account. For a $15 charge on a $100 2-week payday loan, the annual percentage rate is 26 × 15% = 390%; the usefulness of an annual rate (such as an APR) has been debated because APRs are designed to enable consumers to compare the cost of long-term credit and may not be meaningful in cases where the loan will be outstanding for only a few weeks. Likewise, an “effective” rate may have even more limited value because payday loans do not permit interest compounding; the principal amount remains the same, regardless of how long the loan is outstanding. Nevertheless, careful scrutiny of the particular measure of loan cost quoted is necessary to make meaningful comparisons.

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We all are acquainted with payday loans as they use to save our financial stability when we are in difficult situations. Our company provides no employment verification payday loans from direct lender on really attractive conditions. To know more about it please visit site.

Our customers can count on the following advantages:

You can get up to $1,500 directly on your bank account
Fast and easy process of getting payday loans from direct lender
Low interests
No credit check, no employment verification payday loans
Loans without faxing and teletrack
Transparent conditions – no hidden payments
Payday loans from direct lenders only
Easy repayment process
Professional and user-friendly service.

With us you can get payday loans easily and enjoy profitable conditions. For start you should fill our online application with some personal information like name, age, place of residence. The whole process won’t take you more than five minutes. After you send the application and our specialists check the information, you’ll get an approval for no employment verification payday loans online and within a few hours the money will be transferred to your saving account.

Actually, almost every USA citizen of at least 18 years old with stable income can get our payday loans from direct lender. You don’t have to visit bank, use fax or teletrack – the process is simple as ABC! You can apply for our payday loans from the comfort of your house or office and get money on your account within a few hours. The repayment process is even simpler – at appointed date you have to transfer the needed amount from your account – fast and safe.

You can count on our payday loans from direct lender even in case your credit reputation is not clear or you don’t have an official place of employment. Many people nowadays use to have several sources of income, and certainly every person has a right for mistake. Thus, we are glad to provide no employment verification payday loans for bad credit of people with bad credit histories or without stable work.

Having reach experience and good reputation in providing payday loans from direct lender we know how to lend you money on the most attractive conditions. With us you’ll get the lowest interest rates, absolutely honest service without any pitfalls, really easy and absolutely safe process of getting no employment verification payday loans from direct lender.

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Loan Securitization

Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations and selling said consolidated debt as bonds, pass-through securities, or Collateralized mortgage obligation (CMOs), to various investors. The principal and interest on the debt, underlying the security, is paid back to the various investors regularly. Securities backed by mortgage receivables are called mortgage-backed securities (MBS), while those backed by other types of receivables are asset-backed securities (ABS). To learn more about it please visit site.

Critics have suggested that the complexity inherent in securitization can limit investors’ ability to monitor risk, and that competitive securitization markets with multiple securitizers may be particularly prone to sharp declines in underwriting standards. Private, competitive mortgage securitization is believed to have played an important role in the U.S. subprime mortgage crisis.

In addition, off-balance sheet treatment for securitizations coupled with guarantees from the issuer can hide the extent of leverage of the securitizing firm, thereby facilitating risky capital structures and leading to an under-pricing of credit risk. Off-balance sheet securitizations are believed to have played a large role in the high leverage level of U.S. financial institutions before the financial crisis, and the need for bailouts.

The granularity of pools of securitized assets is a mitigant to the credit risk of individual borrowers. Unlike general corporate debt, the credit quality of securitised debt is non-stationary due to changes in volatility that are time- and structure-dependent. If the transaction is properly structured and the pool performs as expected, the credit risk of all tranches of structured debt improves; if improperly structured, the affected tranches may experience dramatic credit deterioration and loss.

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Variations on payday lending

A minority of mainstream banks and TxtLoan companies lending short-term credit over mobile phone text messaging offer virtual credit advances for customers whose paychecks or other funds are deposited electronically into their accounts. The terms are similar to those of a payday loan; a customer receives a predetermined cash credit available for immediate withdrawal. The amount is deducted, along with a fee, usually about 10 percent of the amount borrowed, when the next direct deposit is posted to the customer’s account. After the programs attracted regulatory attention,Wells Fargo called its fee “voluntary” and offered to waive it for any reason. It later scaled back the program in several states. Wells Fargo currently offers its version of a payday loan, called “Direct Deposit Advance,” which charges 120% APR. Similarly, the BBC reported in 2010 that controversial TxtLoan charges 10% for 7-days advance which is available for approved customers instantly over a text message. To know more about it please visit site.

Income tax refund anticipation loans are not technically payday loans (because they are repayable upon receipt of the borrower’s income tax refund, not at his next payday), but they have similar credit and cost characteristics. A car title loan is secured by the borrower’s car, but are available only to borrowers who hold clear title (i.e., no other loans) to a vehicle. The maximum amount of the loan is some fraction of the resale value of the car. A similar credit facility seen in the UK is a logbook loan secured against a car’s logbook, which the lender retains. These loans may be available on slightly better terms than an unsecured payday loan, since they are less risky to the lender. If the borrower defaults, then the lender can attempt to recover costs by repossessing and reselling the car.

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