savings and loan

(redirected from savings and loans)
Also found in: Dictionary, Thesaurus, Financial.

savings and loan

n. a banking and lending institution, chartered either by a state or the Federal government. Savings and loans only make loans secured by real property from deposits, upon which they pay interest slightly higher than that paid by most banks. In the early 1980s savings and loans were "de-regulated," allowing them to make loans for speculative land development, removing high reserve funds requirements, and in allowing savings and loans' funds to participate in competition with banks. The result was use of many savings and loans for speculative and dishonest investments, lack of controls, and tremendous losses to thousands of depositors. However, a properly-managed, conservative savings and loan which concentrates on real estate loans guaranteed by the FHA (Federal Housing Administration) and/or sold in the secondary mortgage market can be safe, profitable, and provide a valuable channel for savings into the home finance market.

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
At First Allied Savings and Loans at Asafo, enthusiastic customers were seen around the precinct of the institution, which was under lock and key.
On the other hand, under RA 8367, otherwise known as the 'Revised Non-Stock Savings and Loan Association Act of 1997,' a savings and loan association is a 'nonstock, nonprofit corporation engaged in the business of accumulating the savings of its members and using such accumulations for loans to members to service the needs of households by providing long- term financing for home building and development and for personal
Desperate to stop the sale but lacking the necessary powers, Commissioner William Crawford of the California Department of Savings and Loans sent his own small examination team to Lincoln, to see if his people could somehow put a spoke in Keating's wheel.
They play a vital role in our Nation's banking system by providing credit and holding deposits and reserves for commercial banks, savings and loans, and credit unions.
Capital requirements are increasing, partly because of the increments in tangible and risk-based capital called for under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA, or the Bush Plan), and partly because of the new core capital requirements under which most savings and loans will have to show a core capital ratio of between 4 and 5 percent of assets (as against the former 3 percent).
Keating personifies the rank thievery that characterized the savings and loan crisis, the largest financial disaster since the Depression.
Savings and loans, on the other hand, were charging 8.56%, 8.98% and 6.39%, respectively.
For the first time ever, the nation's 49 black banks, 40 savings and loans and 39 insurance companies' combined assets top $2 billion.
After a fair amount of confusion over which vague entity ("deregulation," "campaign finance") deserved the blame for the $500 billion savings and loan crisis, congressional leaders and the press are helpfully trying to focus the nation's resentment on one of two villains: Neil Bush or Texas.
The result: hundreds of savings and loans failed, threatening the entire U.S.
The securities were the latest in a series of RTC Residential Mortgage Securities bonds issued in conjunction with the savings and loan bailout.
In addition to the 322 savings and loans that have failed or floundered since 1983 because of faulty appraisals, federal regulators are discovering that many ostensibly healthy lending institutions hold loans based on bloated property values.
Full browser ?