If you want to build or buy a house, you will visit your bank before you put the first stone, because the financing should be on a firm footing. Nothing is more annoying and more expensive than a calculation that wobbles. This could happen if the cost of living and ongoing obligations are not properly determined, and the monthly available money is considered too high. Unemployment, disability, and divorce are other factors that could make the new home suddenly seek a buyer. But if a solid financing has been created, nobody needs to fear such things. See http://simplicol-kraski.com
In fact? For there are already headlines that offer another possibility for a disaster.
Once the financing is solid and the house is built, the customer is in good hands and says that as long as he pays his installments on time, he has peace and quiet until the end of his life. But then the surprise should be great, when suddenly a friendly man from the states on the door rings and asks for additional securities. Often it is so that these securities do not exist, because what is there, was indeed assigned to the house bank. If so promptly calls for an immediate repayment, remains only a disbelieving look.
Such a US financial investor is said to have been spotted thousands of times in Germany. As a reason, it has become clear that German banks and savings banks have impaired distressed or only supposedly bad loans to hedge funds and private equity companies. Since real estate loans are said to have given rise to buoyant trade, many consumers are now unsure, because on their backs the whole thing is carried out. They know nothing about the sale of their credit, so they can hardly defend against it and are suddenly exposed without their knowledge or even a conscience greedy business partner, who has the dollar signs in the eyes. The call for a basic decision in the cabinet is now sounding loudly to stop the bad habit. What exactly is going on?
Every bank secures itself against risks, because bankruptcy is the worst thing a bank can imagine.
A chicken-dog from all sides would be sure. It is not just about real estate loans, but also loans for SMEs and even ship investments. German banks are currently using the classic Pfandbrief for refinancing in the real estate business. But now everything is about to change, because since 2001 the Hamburg real estate is being sought for the securitization of real estate loans, and this is a booming business, as other countries, eg the USA or England, show.
The so-called asset-backed securities (ABS) form the principle behind securitisations. One may think of securities when the risks of many individual loans from housing or commercial real estate are bundled, sorted by default risks and summarized. On the international capital markets, these securities can then be bought by several investors, even if there is no direct stock exchange for these securities. Rather, the investment banks cover the world’s great demand. Banks and insurance companies, for example, turn out to be interested parties. Private individuals are the exception. The shoppers share the risk and loss when the bars should really break. But at the box office, much of the interest and risk premiums are ringing.
We wonder why banks are selling their loans at all, when it’s such a good deal that others seem to be licking their fingers. And the answer is that the securitization bank retains a small bit of the risk premia, even though it’s only a per-thousand-pills deposit, but that seems to be going on. After all, it no longer carries any risk of default and definitely deserves, no matter how the game ends. What’s the name of it? The bank always earns. Another reason is that banks are selling new real estate loans, which they would not be able to do. The risks of well-performing loans can also be placed on the market by the banks. Then the loan stays in their books and the customer does not notice the deal. This sale of default risk is called “synthetic” securitization in professional circles. At the same time, the business relationship remains in place for the customer.
Property buyers who have taken up this article with growing displeasure, but can now also make a good report about it, because according to demands of associations and politicians, banks should indicate before signing the contract whether the credit will be sold can. For this, salable loans are to be offered at a more favorable interest rate. After that, everyone can choose whether to prefer a favorable credit with a sales option over the slightly more expensive, uncertain credit. Well, who has the choice, has the agony.