Debt-to-Worth Ratio
Ratio that measures the financial leverage of a company. This ratio is defined as total liabilities divided by net worth. Low debt-to-worth ratio spells minimal risk for both the lender and business owner.
|
THE MORTGAGE MELTDOWN; Fed imposes new rules on lenders; Crackdown on verifying borrowers' creditworthiness aims to avert another mortgage crisis.
The Federal Reserve clamped down hard on mortgage lenders Monday, issuing rules designed to curb the sorts of risky and deceptive lending practices that helped trigger the subprime mortgage crisis. The Fed's action, although criticized by some for not going far enough, was widely seen as a crucial step in reasserting control over a financial market that had been allowed to run wild. "There's lots more to come," said Thomas Lawler, a former Fed official who is now a housing market consultant. "Th...
7/15/2008 12:00:00 PM
News & Issues - Business/Financial News
|
