A debt security in where the issuer has the right to redeem the security
at a specified price on or after a specified date, but prior to its
stated final maturity date.
A set percentage amount by which an adjustable rate mortgage may adjust
each adjustment period. For adjustable loans, caps are usually quoted
as two numbers as in 2/6. The first number indicates how much a loan
may adjust at each adjustment period while the second number indicates
how much a loan may adjust over its lifetime.
like the 3/1 and 5/1 adjustable which have an initial fixed period
are quoted with 3 numbers as in 3/2/6 which would mean that the first
adjustment may be as much as 3%, subsequent adjustments are capped
at 2% each, and the lifetime cap is 6%.
loans are quoted with a single cap, which is the amount by which the
loan may adjust at its single adjustment date.
A loan in which a seller agrees to finance a buyer in order to complete
a property sale.
of Eligibility -
A veteran's evidence of entitlement for a VA-guaranteed loan.
of Reasonable Value (CRV) -
An appraisal that has been performed on a property that is being paid
for a VA loan. After the property has been appraised, the Veterans
Administration issues a CRV.
A title that is free of liens or any legal question as to the ownership
of the property.
Final arrangements to transfer title of property as well as allocate
charges and credits.
Closing costs are fees paid by the borrower when a property is purchased
or refinanced. Costs incurred include a loan origination fee, discount
points, appraisal fee, title search, title insurance, survey, taxes,
deed recording fee, and credit report charges. All closing costs are
separated into "non-recurring," and "pre-paid." Non-recurring charges
are any items that are paid only once because a loan was obtained
or a property bought, such as a loan origination fee. Pre-paid charges
are those that recur over time, like insurance and property taxes.
These are summarized in the Good Faith Estimate.
An outstanding claim or encumbrance, that, if valid, would affect
or impair the owner's property title.
Property, real or personal, pledged as a security to back up a promise.
In a home loan, the property is considered collateral that can be
revoked if loan is not repaid according to the terms of the mortgage
or deed of trust.
A written letter of agreement detailing the terms and conditions by
which the lender will lend and the borrower will borrow funds to finance
A mortgage loan for up to $300,700 in the continental United States
(Alaska and Hawaii limits are higher).
A short term loan for funding the cost of construction. The lender
advances funds to the builder as the work progresses.
The right of a borrower to convert an adjustable or balloon loan into
a fixed loan. The possible options are as follows...
May Not Convert This Loan.
May Convert But Must Requalify.
Conversion Fee Applies
May Convert And Is Automatically Qualified.
Conversion Fee Applies
Conventional Mortgage -
A mortgage loan that is obtained without any additional guarantees
for repayment, such as FHA insurance, VA guarantees, or private insurance.
This is usually given at an 80% loan-to-value ratio.
A credit loan is a mortgage that is issued on only the financial strength
of a borrower, without great regard for collateral.
The ratio of credit-related losses to the dollar amount of MBS outstanding
and total mortgages owned by the corporation.
Borrowers are rated by lenders according to the borrower's credit-worthiness
or risk profile. Credit ratings are expressed as letter grades such
as A-, B, or C+. These ratings are based on various factors such as
a borrower's payment history, foreclosures, bankruptcies and charge-offs.
There is no exact science to rating a borrower's credit, and different
lenders may assign different grades to the same borrower.
The sum of foreclosed property expenses plus the provision for losses.
The sum of foreclosed property expenses plus charge-offs.
A report to a prospective lender on the credit standing of a prospective
borrower. Used to help determine creditworthiness. Information regarding
late payments, defaults, or bankruptcies will appear here.