mortgage guarantee
[/ˈmɔːrɡɪdʒ ɡærənˈtiː/]
nounpl: mortgage guarantees
garantia hipotecária
1. A legal commitment by a third party to assume responsibility for a mortgage debt if the borrower defaults on payments
The bank required a mortgage guarantee from her parents before approving the loan.
O banco exigiu uma garantia hipotecária dos pais dela antes de aprovar o empréstimo.
2. Insurance or assurance that protects a lender against loss if the mortgaged property is foreclosed and sold for less than the outstanding loan balance
FHA mortgage guarantee programs help first-time homebuyers qualify for loans with lower down payments.
Programas de garantia hipotecária da FHA ajudam compradores de primeira vez a se qualificarem para empréstimos com pagamentos iniciais menores.
3. A government-backed or private insurance policy that guarantees repayment of a mortgage loan
The mortgage guarantee protected the lender from the risks associated with subprime lending.
A garantia hipotecária protegeu o credor dos riscos associados aos empréstimos de alto risco.
In Brazil, mortgage guarantees are increasingly important in the real estate market as banks seek to mitigate lending risks. Government programs similar to the FHA in the United States have emerged to promote homeownership. In the USA, mortgage guarantees became especially prominent after the 2008 financial crisis, with greater emphasis on PMI and government-backed loan programs. The concept directly impacts housing affordability and access to credit in both countries.
Related Idioms & Phrases
backed by a mortgage guarantee
mortgage guarantee requirement
to require a mortgage guarantee
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