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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z — Other Terms

Abstract of Judgment

A summary of the essential provisions of a court judgment which, when recorded in the county recorder's office, creates a lien upon the property of the debtor in that county, both presently owned or after acquired.

Abstract of Title

A history of a property's title record used in some states to prepare the Preliminary or Title Commitment report. An Abstract of Title lists anyone who's ever had a claim to the property, past and present. Some states require mortgage lenders to obtain a complete Abstract of Title. However, most states condense the abstract into a document called either the Preliminary or Title Commitment which lists only current claims to the property.

Acceleration

The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor (borrower), or by using the right vested in the Due-on-Sale Clause.

Accepted Fee Appraiser Panel

Panel of authorized fee appraisers that complete property appraisals for Ameriquest Mortgage Company loans.

Access Checks

Checks issued that are written against a line of credit. The transaction is applied to the cash balance and a transaction fee may be applicable. Also known as cash advance checks or convenience checks.

Accrued Interest

Interest on a note, bond, etc., which has been earned but not yet paid.

ACH Payment

Automated Clearing House Payment. Payments made online will be reflected on your billing statement with this term.

Addendum

An attachment to a contract, deed, or other document that incorporates additional terms of information to the original.

Adjustable-Rate Mortgage (ARM)

A mortgage loan where the interest rate is not fixed for the entire term of the loan, and can change during the life of the loan in line with movements of an index rate. Also sometimes known as the renegotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.

Adjustable-Rate Rider

A rider is an addition to a security instrument. The adjustable-rate rider outlines terms and conditions specific to an adjustable-rate loan. It must be recorded along with the security instrument at the county recorder's office.

Adjusted balance

A balance computation method where all payments made during the billing cycle are subtracted from the outstanding balance at the beginning of the billing cycle, prior to the calculation and accrual of finance charges to the account.

Adjusted Basis

The cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken.

Adjustment Cap

The adjustment cap limits the degree of interest rate changes during a specific period, during the life of the loan.

Adjustment Date

The date that the interest rate changes on an adjustable-rate mortgage (ARM).

Adjustment Interval

On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment, typically one, three, or five years depending on the index.

Adjustment Period

The period elapsing between adjustment dates for an adjustable-rate mortgage (ARM).

Affinity card/Co-brand

A card offered by a lending institution in conjunction with another organization. Schools, non-profit groups, pro wrestlers, popular singers and airlines are among those featured on these types of cards. Frequently, use of this card entitles holders to special discounts or deals from the non-financial group.

Affordability Analysis

An analysis of a buyers ability to afford the purchase of a home. Reviews income, liabilities, and available funds, and considers the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that are likely.

After-tax return

An investment’s return after all income taxes have been deducted.

Alimony

Periodic payments made under a divorce decree or a written separation agreement toward the support of a former spouse. Alimony may be taken as a deduction from adjusted gross income by the person who pays it, while the person who receives it must claim it as a taxable income.

American Land Title Association (ALTA)

An organization composed of title insurance companies, which has adopted certain insurance policy forms to standardize title insurance coverage on a national basis.

Amortization

Payment of debt in regular, periodic installments of principal and interest, as opposed to interest only payments. Amortization is the process of reducing principal and interest in equal installment payments at specific intervals over a set term. For example, a fully amortized loan payment is a portion of which will be applied to pay the accruing interest on the loan with the remainder being applied to principal. Over time, the interest portion decreases as the loan balance decreases and the amount applied to principal increases so that the loan is paid off in the specified term.

Amortization Term

The length of time required to amortize the mortgage loan expressed as a number of months. For example, 360 months is the amortization term for a 30-year fixed-rate mortgage.

Annual fee

A fee charged (on a yearly basis) for the customer's continued participation in an open-end, credit plan.

Annual Percentage Rate (APR)

The Annual Percentage Rate (APR) is a measure of the full cost of credit, expressed as a yearly rate. The APR takes into account the amount financed, the finance charge, and the amounts and timing of the payments. Under the Truth in Lending Law, the APR must be disclosed and labeled. Because all lenders apply the same rules in calculating the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans.

Annual Percentage Rate (APR)(Home Loans)

The total yearly cost of the interest on a loan, expressed as a percentage rate. The Federal Truth in Lending Act mandates a standard calculation method to allow a consumer to make ""apples to apples"" comparisons of lending rates.

Annual Percentage Rate Imposed

Your annualized cost of borrowing money from us for this billing period. It is sometimes different than your APR because of one or more of the following reasons:

your finance charges are compounded daily;
you may have fees assessed on your account;
the rounding of the daily periodic rate to five decimal places
(For example: The daily periodic rate for 19.8 = 0.0542465 is rounded to 0.05424)
The "Annual Percentage Rate Imposed" includes transaction-based fees and all finance charges assessed on the account. While this figure is not used to determine your daily periodic rate, it is provided for your benefit and is within the federal regulation guidelines. This figure is NOT used to calculate the actual finance charges assessed on your account.

Annual report

The yearly audited record of a corporation or a mutual fund’s condition and performance that is distributed to shareholders.

Annuitant

The person during whose life an annuity is payable, usually the person to receive the annuity.

Annuity

Fixed payments an individual receives for a lifetime or specified number of years at consistent intervals. For example, a customer may receive an annuity from a pension plan or from an investment.

Annuity(Home Loans)

A long-term investment that provides tax-deferred growth and income at regular intervals for as long as you specify.

Appraisal

An estimate as to the monetary value of the property. For example, an appraisal of property provides an idea of how much money the property is worth in the housing market at a given time.

Appraised Value

An estimate of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.

Appreciation

An increase in value. Example: An increased value of property due to either a positive improvement of the area or the elimination of negative factors.

As Is Condition

Premises accepted by a buyer or tenant in the condition existing at the time of the sale or lease, including all physical defects.

Assessed Value

Value placed upon property for property-tax purposes by the tax assessor.

Assessment

A local tax levied against a property for a specific purpose, such as a sewer or street lights.

Asset allocation

The distribution of assets among various types of securities, including stocks, bonds and money market securities, according to your financial goals, time frame and risk tolerance.

Assets

Economic resources of an enterprise or person. A mutual fund’s assets include cash and securities.

Assets under management

The value of the assets that a company manages, but does not own.

Assignment

The transfer of a mortgage from one person to another.

Assumability

An assumable mortgage can be transferred from the seller to the new buyer. Generally requires a credit review of the new borrower and lenders may charge a fee for the assumption. If a mortgage contains a due-on-sale clause, it may not be assumed by a new buyer.

Assumption

The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where closing cost and new, probably higher, market-rate interest charges will apply.

Assumption Fee

The fee paid to a lender (usually by the purchaser of real property) when an assumption takes place.

Attachment

A legal process whereby the judgment creditor may obtain a lien against the debtor's property.

Attorney Closings

This practice is prevalent in states where attorneys' opinions are used in place of title reports. Closings by attorneys follow much the same procedures as escrow closings. The lender delivers to the attorney the settlement statement and the net loan proceeds, as well as instructions for their use.

Attorney In Fact

A person given the authority to act on behalf of another under a power of attorney.

Authorized user

A person who has been given authority by a primary cardholder to make charges to that primary cardholder's account, but who does not have legal responsibility for repaying the account.

Automated Valuation Model (AVM)

A software tool that uses computer analysis of real estate sales data to find an estimated value without an onsite inspection.

Average daily balance

A balance computation method for calculating finance charges. It is calculated by adding each day’s outstanding balance (in a billing cycle) and then dividing that total by the number of days in the billing cycle.

Balance transfer

The process of moving an unpaid credit card debt from one issuer to another. Card issuers sometimes offer teaser rates to encourage balance transfers and charge balance transfer fees to discourage transfers to other accounts.

Balance transfer fee

Fee which may be charged to customers for transferring an outstanding balance from one account to a different account.

Balanced fund

A mutual fund that invests in both stocks and bonds whose objective is both growth and income.

Balloon Mortgage

A loan which is amortized for a longer period than the term of the loan. Usually this refers to a thirty-year amortization and a five year term. At the end of the term of the loan, the remaining outstanding principal on the loan is due. This final payment is known as a balloon payment.

Balloon Payment

The final lump sum paid at the maturity date of a balloon mortgage equal to the remaining principal balance plus any interest and charges due.

Banking days

Banking days are Monday through Friday, with the exception of the following Federal Holidays:

New Years day
Martin Luther King, Jr. day
President's day
Memorial day
Independence day
Labor day
Columbus day
Veterans day
Thanksgiving day
Christmas day

Bankruptcy(Home Loans)

A legal mechanism, the purpose of which is to modify or eliminate a person's obligation to repay certain kinds of debt in order to permit the person to get a ""clean start” economically. There are generally two basic ways of filing for personal bankruptcy: Chapter 7 bankruptcy liquidates a debtor's assets, pays off the creditor and discharges most debts; Chapter 13 allows a borrower with a steady income to propose a plan designed to pay off bills over an extended period. Bankruptcy is a serious step for a borrower because it can severely limit access to credit for years to come.

Bankruptcy (BK)

Court proceedings to relieve the debts of an individual or business unable to pay its creditors.

Bear market

A prolonged period of declining stock prices.

Beneficiary

The entity or lender that funds the loan and to which the loan is owed.

Beneficiary(Home Loans)

The person named in a life insurance policy to receive the insurance proceeds upon the death of the insured.

Billing cycle

The period between billing statements.

Billing statement

The periodic statement sent by a credit card issuer to the customer that summarizes all transactions and other activity applicable to a credit card account, including balance, purchases, payments, credits and finance charges and may contain other notices or inserts.

Biweekly Payment Mortgage

A plan to reduce the debt every two weeks (instead of the standard monthly payment schedule). The 26 (or possibly 27) biweekly payments are each equal to one-half of the monthly payment required if the loan were a standard 30-year fixed-rate mortgage. The result for the borrower is a substantial savings in interest.

Blanket Mortgage

A mortgage covering at least two pieces of real estate as security for the same mortgage.

Bond

A security that represents a loan investors make to corporations and/or governments. A bond pays a stated return over a fixed period of time.

Bond fund

A mutual fund that invests exclusively in bonds.

Bond rating

A measure of quality assigned by independent rating agencies that address the probability of a bond issuer’s default. Bonds with the smallest default probability are rated AAA (or AAA) and usually offer the lowest interest rates.

Borrower

One who borrows money and is responsible for repaying it to the lender. Also known as obligor. If the loan is secured by a mortgage, the borrower is known as a mortgagor.

Borrower Savings

The monthly savings a customer will experience by consolidating/paying off debt with a debt consolidation loan. Monthly savings equals current monthly payments less new monthly payments.

Bottom-up approach

An investment strategy that focuses on individual stocks, rather than general market trends. It assumes strong companies can perform well independent of the market environment.

Bridge Loan

A second trust that is collateralized by the borrower's present home allowing the proceeds to be used to close on a new house before the present home is sold. Also known as ""swing loan.""

Broker

An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself. Brokers usually charge a fee or receive a commission for their services.

Broker(Home Loans)

A professional who sells financial and investment products.

Bull market

A prolonged period of rising stock prices.

Business For Self (BFS)

Customers who own their own business. Another word for self-employed.

Business License

A license that authorizes a business to operate and is typically required and issued by the city in which the business is located.

Buy-Down

When the lender and/or the home builder subsidized the mortgage by lowering the interest rate during the first few years of the loan. While the payments are initially low, they will increase when the subsidy expires.

Canceled Check: A check that has been cashed by the bank on which the check was drawn.
Capacity: A customer's financial ability to repay debt.
Capital: The amount of ""extra"" funds available after a company has allocated all of its obligations to its policyholders, employees, and creditors.
Capital gain: The difference between a security’s purchase price and it’s selling price, when the difference is positive.
Capital gains distribution: A payment to mutual fund shareholders of profits realized from the sale of stocks and/or bonds.
Capital loss: The amount by which the proceeds from the sale of a security are less than its purchase price.
Capitalization: The market value of a company’s securities, excluding its correct liabilities. Typically, companies with a capitalization under $250 million are called small-cap, companies between $250 million and $1 billion are mid-cap and companies over $1 billion are large-cap.
Capitalization ratio: An analysis of a company’s capital structure organized by asset type (e.g. common stock, preferred stock, other equity and debt).
Cardholder agreement: The written statement that sets forth all of the terms and conditions applicable to a credit card account. It generally outlines the cardholder's obligations with respect to their credit card account, such as repayment, default, billing disputes and other associated terms. Changes in the cardholder agreement may be made, with written advance notice if necessary, at any time by the issuer. Rules for imposing changes vary from state to state, but the rules that apply are those of the home state of the issuing bank, not the home state of the cardholder.
Cash advance fee: A charge for using a credit card to obtain cash (generally at an ATM or bank window). This fee can be stated in terms of a flat, per-transaction fee or a percentage of the amount of the cash advance. For example, the fee may be expressed as follows: ""2%/$10"". This means that the cash advance fee will be the greater of 2% of the cash advance amount or $10. Depending on the bank issuing the card, the cash advance fee may be deducted directly from the cash advance at the time the money is received or it may be posted to the bill on the day the advance was. Generally, cash advance fees do not have a grace period, which means that interest accrues from the moment the money is withdrawn.
Cash Available: Money you have available to apply towards the down payment and closing costs.
Cash Card: A card similar to a pre-paid phone card with a set amount of value, which can be read by a special cash card reader. Participating retailers will use the reader to debit the card in increments until the value is gone. The card is like cash — it has no built-in security, so it can be used by anyone if lost or stolen.
Cash Flow: The amount of cash derived over a certain period of time from an income-producing property. The cash flow should be large enough to pay the expenses of the income producing property (mortgage payment, maintenance, utilities, etc.).
Cash position: Percentage of a mutual fund’s portfolio held in cash and cash equivalents.
Cashier's Check: A check drawn by a bank on itself rather than on an account of a depositor. A cashier's check is generally acceptable to close a sale without waiting for the check to clear.
Cash-Out: A refinance transaction in which the borrower receives cash that may be used for any purpose.
Cash-Out Explanation Letter: A handwritten, signed and dated letter provided by customers who are receiving cash from the loan to explain how they intend to use that cash. Generally used to verify that borrowers aren't planning to use the cash to incur additional debt that will add to their monthly obligations and decrease disposable monthly income.
Ceiling: The highest interest rate that may be assessed or an adjustable-rate loan during the life of the loan based on the start rate and lifetime cap.
Central bank: The only institution that has the right to issue banknotes and that has authority over monetary and credit policies for a particular currency zone. The central bank also supplies the economy with money and credit, regulates domestic and foreign payment transactions, and maintains internal and external monetary stability.
Certificate of deposit (CD): A debt instrument issued by a bank that usually pays interest. The date of the maturity ranges from a few weeks to several years.
Certificate of Eligibility: The document given to qualified veterans which entitles them to VA guaranteed loans for homes, business, and mobile homes. Certificates of eligibility may be obtained by sending form DD-214 (Separation Paper) to the local VA office with VA form 1880 (request for Certificate of Eligibility)
Certificate Of Occupancy: A certificate issued by a local city government to the property owner stating the building is in proper condition to be occupied.
Certificate of Reasonable Value (CRV): An appraisal issued by the Veterans Administration showing the property's current market value.
Certificate of Veteran Status: The document given to veterans or reservists who have served 90 days of continuous active duty (including training time). It may be obtained by sending DD 214 to the local VA office with form 26-8261a (request for certificate of veteran status. This document enables veterans to obtain lower down payments on certain FHA insured loans).
Certified Copy: A copy attested to be true by the individual or entity holding the original.
Change Date: This is a date established in an adjustable rate loan contract when a new interest rate will be assessed. Also known as adjustment date.
Change Frequency: The frequency (in months) of payment and/or interest rate changes in an adjustable-rate mortgage (ARM).
Chapter 13 BK: Chapter 13 Bankruptcy is a debt reorganization plan where debts are repaid under a court-supervised repayment plan. Debtors submit part of their income for distribution among creditors. Also known as the wage-earner plan.
Chapter 7 BK: A Chapter 7 Bankruptcy is a straight liquidation bankruptcy where the debtor submits all of their non-exempt assets to the trustee for liquidation; proceeds are disbursed to creditors.
Charge card: A card that requires a full payment of the entire accrued balance by the due date. Unlike credit cards, which give borrowers a revolving line of credit and let them carry a balance at a predetermined interest rate, charge cards generally do not allow a cardholder to carry a balance and do not charge interest. American Express and Diner's Club are examples of charge cards.
Charge-Off: A delinquent credit account with a balance owed that was never fully satisfied and the creditor removed it from the books for accounting purposes even though the debtor still owes payment in full.
Check 21: Check 21 (the Check Clearing for the 21st Century Act), effective October 28, 2004, is a new federal law designed to enhance the speed and efficiency by which checks are processed through the banking system. This increase in speed is intended to create real benefits for individuals, businesses and banks when fully implemented.
Child Support: Periodic payments made under a divorce decree or a written separation agreement for the support of the children.
Classic card: The brand name for the standard card issued by VISA.
Closed-end fund: An investment company with a limited number of shares outstanding whose price trades like an individual security. Unlike open-end mutual funds, closed-end funds do not stand ready to issue and redeem shares on a continuous basis.
Closing: A meeting between a lender and borrower or a buyer, seller and lender or their agents when the loan documents are signed and the funds legally change hands. Also known as settlement.
Closing Agent: The party designated to conduct the loan closing, and to ensure the mortgage or deed is recorded and the funds disbursed on time.
Closing Costs: These are expenses - over and above the price of the property- that are incurred by buyers and sellers when transferring ownership of a property. Closing costs normally include an origination fee, property taxes, charges for title insurance and escrow costs, appraisal fees, etc. Closing costs will vary according to the area country and the lenders used.
Closing Costs(Home Loans): On the day you actually buy your new home, in addition to your down payment, the prepaid property tax, and homeowners insurance premiums, you'll need cash for various fees associated with the purchase. These expenses are known as closing costs and are paid by both buyers and sellers.
Closing Statement: A statement required by Federal law (the Real Estate Settlement Procedures Act) that itemizes all changes imposed on the borrower and seller (if any) in connection with a mortgage secured loan transaction. Also known as a settlement statement, HUD-1 or HUD-1A.
Co-Borrower: A 2nd borrower on a loan.
COFI: Adjustable-rate mortgage with rate that adjusts based on a cost-of-funds index, often the 11th District Cost of Funds.
Collar: An option contract that sets a maximum and minimum exchange rate parameters that will be adhered to even if the market rate lies outside this range.
Collateral (or Security): Personal property, such as a house, car, Capital One Savings account, stock, bond, or Time Account (CD), pledged as a guarantee that you will repay your loan.
Combined Loan To Value (CLTV): The total of all liens on the subject property divided by the appraised value of the property.
Combined Monthly Housing Expense: Monthly expenses for the customer's primary residence, which include rent or mortgage payments, other financing, hazard and flood insurance, mortgage insurance, real estate taxes, utilities and homeowner association dues.
Commercial Property: A property used for business purposes.
Community Property: Property owned equally by a husband and wife. This classification of property is only used in certain states.
Comparable (Comp): Properties used to determine the value of a specific property for comparative purposes in the preparation of an appraisal.
Compound interest: Interest computed on the principal plus the interest accumulated previously to the date of compounding.
Concession: Special or unusual terms offered by the seller that may warrant the buyer paying a higher price for the property.
Condominium (Condo): A residential property with 2 or more units where each unit owner holds title to a unit and an undivided interest in the common areas of the project.
Condominium Association: An association of owners of condominium units.
Construction loan: A short term interim loan to pay for the construction of buildings or homes. These are usually designed to provide periodic disbursements to the builder as he or she progresses.
Consumer Credit: Credit owed by the individual, not secured by real estate.
Consumer Reporting Agency (or Bureau): An organization that handles the preparation of reports used by lenders to determine a potential borrower's credit history. The agency gets data for these reports from a credit repository and from other sources.
Consumer reporting/credit agencies/credit bureaus: Organizations that collect individual consumer credit information and provide credit reports to potential lenders, employers, landlords, etc., for the purpose of aiding in their decision making process.
Contingent deferred sales charge (CDSC): A back-end sales charge imposed when shares are redeemed from a fund. This fee usually declines over time.
Contract sale or deed: A contract between purchaser and a seller of real estate to convey title after certain conditions have been met. It is a form of installment sale.
Conventional Loan: A mortgage not insured by FHA or guaranteed by the VA.
Conversion Clause: A provision in an ARM allowing the loan to be converted to a fixed-rate at some point during the term. Usually conversion is allowed at the end of the first adjustment period. The conversion feature may cost extra.
Conveyance: The written instrument by which title to real property is transferred from one party to another.
Corporation: An artificial person or legal entity created by or under the authority of the law of a state. May have limited liability, perpetual life, freely transferable shares and centralized management.
Co-signer (Joint Applicant): A person who signs a credit card application with the primary applicant. The co-signer agrees to be legally liable for any balance incurred on the credit card, regardless of who used the card.
Cosmetic Repair: Repairs that improve the appearance of the property.
Cost basis: The purchase price of an investment, used to calculate capital gains when the investment is sold.
Covenants, Conditions And Restrictions (C C & Rs): Limitations placed on the use and enjoyment of real property. Usually intended to maintain a certain look within a neighborhood and common in subdivisions, PUDS or condominium communities.
Credit Authorization Letter: A letter signed by the borrower that authorizes a lender, to conduct a credit investigation.
Credit Bureau: A company that collects and organizes information about an individual's credit and payment habits. The 3 national credit bureaus are Experian, TransUnion and Equifax.
Credit Bureau (credit reporting agency)(Home Loans): A company that collects and sells information regarding people and their credit history. The company issues credit reports that list a person’s creditors and their creditor’s history with an individual. The reports are made available to those individuals and to organizations who request the report for a permissible purpose. The three major national credit bureaus are Equifax, Experian (formerly TRW) and Trans Union.
Credit card: A plastic card with a coded magnetic stripe that provides access to a revolving line of credit. Credit cards began in the late 1940s when banks began issuing paper certificates that could be used like cash in local stores. The first real credit card was issued in 1951 by Franklin National Bank in New York.
Credit Denial Letter: A letter that is sent to a credit applicant advising him or her that the application has been denied and the reason for the denial.
Credit Depth: The number of years a borrower has established credit. This information shows up on the borrower's report.
Credit History: The history of whether the borrower has met financial obligations on time in the past.
Credit insurance: Insurance that pays or pays off credit card debt should the borrower be unable to pay the debt as a result of the loss of employment, death, or disability. Generally, this protection covers only the debt that existed as of the last billing cycle.
Credit Length: The length of time a customer has had established credit.
Credit limit: The maximum amount of available credit a cardholder may access. The Consumer Federation of America suggests people carry credit lines no greater than 20 percent of their gross household income. For example, people with a gross income of $50,000 would cap credit lines at $10,000.
Credit line: A credit line is the total amount of credit you have been given for purchases and cash advances. Some accounts may have additional credit lines for special purchases or special transfers.
Credit rating: An individual or company’s credit history and ability to pay debts.
Credit Report: A report documenting the credit history and current status of a borrower's credit standing.
Credit report: A compilation of information regarding a consumer’s credit. The credit report is often a critical factor in credit scoring systems that lenders use to issue credit cards, mortgages, or other loans. It is a good idea to check your credit report to know where you stand and correct any errors. If you have made mistakes in paying previous loans, bounced checks, made late payments, or had other problems, you may be able to correct them — or at least reduce the amount of damage they will do to your credit. If someone else has made a mistake that ended up on your credit report, you want to get it removed. To make certain your credit reports are accurate, it is a good idea to check with all three major national credit bureaus: Equifax, Experian (formerly TRW), and Trans Union.
Credit Score: A numerical assessment assigned to the customer by credit bureaus that represents a measurement of the customer's overall credit rating. The scores are weighted and range from approximately 365 to 840. Low scores reflect a ""high risk”, while higher scores reflect a ""lower risk”. Each credit bureau has its own credit score system. The most well known type of credit risk score is the Fair Isaac or FICO score. This form of credit scoring is a mathematical summary calculation that assigns numerical values to various pieces of information in the credit report. The overall credit risk score is very important in the credit underwriting process for a mortgage loan.
Creditor: An individual or entity to whom money is owed.
Cross-rate: An exchange rate between two non-US dollar currencies.
Currency basket: Various weightings of other currencies grouped together in relation to a basket currency, such as the ECU.
Current Libor Index: A interest rate indicator used in adjustable-rate mortgage loans. The LIBOR Index changes daily and is published in The Wall Street Journal.
Current Loan Balance: The total amount you currently owe on your mortgage.
Current Payment: Your monthly mortgage payment which includes principal, interest plus taxes and insurance if escrowed them.
Custodian: A bank that holds a mutual fund’s assets, settles all portfolio trades, and collects most of the valuation data required to calculate a fund’s net asset value (NAV).

Datedown Addendum

An update to the Preliminary Title Report/Title Commitment that reflects any changes to title since the original title report was prepared.

Debit card

A bank-issued plastic card that provides direct access to a cardholder's checking or savings account. Any withdrawal of funds is immediate with online debit cards and delayed a day or two with offline debit cards. Debit cards that carry the logo of either MasterCard or VISA can be used at any location that displays that network's logo.

Debt consolidation

Financial strategy in which you take out a low-rate loan to pay off one or more high-interest loans or credit cards.

Debt Consolidation Loan

A loan that combines debt obligations into one debt.

Debt Load

The total amount of debt a customer currently owes.

Debt to Income Ratio (DTI) (DR)

The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her gross monthly income. See housing expenses-to-income ratio.

Debtor

One who owes debt.

Deed

A written instrument by which a property owner, the ""grantor,” conveys and transfers to a ""grantee” an ownership interest in real property.

Deed In Lieu

A deed given by a mortgagor to a mortgagee to satisfy a debt and avoid foreclosure.

Deed Of ReConveyance

A document used to transfer legal title from the trustee back to the borrower after a debt secured by a deed of trust has been paid in full.

Deed Of Trust

A security instrument used in some states in place of a mortgage by which legal title is conveyed to one or more trustees to secure the repayment of a debt.

Default

Failure to meet legal obligations of a contract such as the failure to make the monthly mortgage payment or the failure to pay property taxes when due or maintain hazard insurance on the property.

Default(Home Loans)

The failure of a cardholder to perform all of the duties and obligations set forth in the cardholder agreement. Some card issuers may consider you in default — enabling them to penalize you via a higher interest rate — if you miss a payment with any creditor.

Deferred annuity

An annuity providing for income payments to begin at some future date.

Deferred compensation plan (401(k))

A plan under which the participant is permitted to defer a portion of gross income to a retirement plan. Such a deferral is tax exempt for federal income tax purposes until the proceeds are distributed.

Deferred Interest

When a mortgage is written with a monthly payment that is less than required to satisfy the note rate, the unpaid interest is deferred by adding it to the loan balance.

Deferred Maintenance

Repairs necessary to restore a property to good condition.

Deficiency Judgment

The imposition of personal liability on a borrower for the unpaid balance of a mortgage secured loan after foreclosure has failed to satisfy the full amount due to the lender.

Defined benefit plan

A pension plan that promises to pay a specified amount upon retirement. The plan states either: (1) the benefits to be received by employees after retirement, or (2) the method of determining such benefits.

Defined contribution plan

A plan under which the contribution rate is fixed and benefits to be received by employees after retirement depend to some extent upon the contributions and their earnings. Examples are 401(k) and 403(b) plans.

Delinquency

Failure to make payments on time. This can lead to foreclosure.

Demand

A letter from a lender showing the total amount due to pay off a mortgage or trust deed, inclusive of unpaid principal, interest, impound amounts, prepayment penalty, etc. Also, known as a Demand for Payoff Request or Beneficiaries Demand Letter.

Demand Feature

A feature that defines circumstances under which the remaining principal and interest amount of the loan is due and payable on demand.

Department of Veterans Affairs (VA)

An independent agency of the federal government which guarantees long-term, low-or no-down payment mortgages to eligible veterans.

Depreciation

A decrease in value to real property improvements caused by age, deterioration, or functional obsolescence.

Derog Letter

A letter written by the borrower that explains any derogatory information or reporting on the credit report.

Direct Banking

Direct Banking is Capital One's new approach to savings, offering great rates on money markets and certificates of deposit nationwide.

Direct deposit

Direct deposit is a safe, confidential, and convenient method of receiving a payment. Funds are electronically transferred from a company or organization into a consumer's checking or savings account. Customers will provide the following routing numbers to receive direct deposit:

LA 065000090
TX 111901194

Disbursements

Payments made on behalf of the borrower pursuant to the instructions on the HID Settlement Statement.

Discharge

Following a completed bankruptcy proceeding, discharged debts are no longer enforceable. The customer has successfully completed the process and debtors are either paid in full or eliminated based on the plan.

Discount

The difference between a security’s current market price and its estimated value.

Distribution

See capital gains distribution

Diversification

Blending a variety of investments to reduce investment risk.

Dividend

A company’s payment of profits to stockholder’s. A mutual fund’s payment of profits to its shareholder’s. A return of part of the premium on participating insurance to reflect the difference between the premium charged and the combination of actual mortality, expense, and investment experience.

Dividend addition

An amount of paid-up insurance purchased with a policy dividend and added to the face amount of the policy.

Divorce Decree

A document issued by the court that dissolves the marriage relation.

Docs

Abbreviation for mortgage loan documents.

Dollar-cost averaging

An investment strategy which involves regular investing over time into the same security or mutual fund. A dollar-cost averaging program does not guarantee a profit or protect against loss in a declining market.

Dow Jones Industrial Average (DJIA)

A popular index used to measure and report value changes in representative stock groupings. The Dow is a price weighted average of 30 actively traded blue chip stocks primarily of industrial companies.

Down Payment

Money paid to make up the difference between the purchase price and the mortgage amount.

Due on Sale Clause

A provision in a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home.

Duplex

Any building containing 2 separate dwelling units.

Duration

A measure, expressed in years, of a bond’s sensitivity to interest-rate changes. Typically the shorter the duration, the more stable the bond.

Earnest Money: Money given by the prospective buyer to a seller as part of the purchase price to bind a transaction or assure payment.
Effective Age: Age of a structure based upon its present condition rather than actual age. Takes into account rehabilitation and maintenance.
Effective Date: This is the date a new mortgage payment is effective—the month following the rate change date .
Electronic Funds Transfer System: Electronically based system that moves funds from one account to another.
Employee Stock Ownership Plan (ESOP): A defined contribution pension plan designed to invest primarily in employer securities.
Encroachment: Generally, an improvement, such as a wall, fence or building, that extends onto the property of another.
Encryption: The process by which a satellite signal is scrambled (encoded) to prevent signal theft.
Encumbrance: A claim, lien, charge or liability attached to and binding real property. Any right to, or interest in, land which may exist in one other than the owner, but which will not prevent the transfer of fee title subject to such encumbrances.
Endorse: The act of a payee or holder of a note, bill, check or other negotiable instrument, of assigning and transferring said instrument to another by signing the back of the instrument, with or without qualifications.
Endorsement: An addition to a title insurance policy that adds or subtracts coverage.
Endowment: Life insurance payable to the policyholder, if living, on the maturity date stated in the policy, or to a beneficiary if the insured dies prior to that date.
Entitlement: The VA home loan benefit is called an entitlement (i.e. entitlement for a VA guaranteed home loan). This is also known as eligibility.
Equal Credit Opportunity Act (ECOA): A federal law, passed in 1974, that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.
Equifax: One of the Credit bureaus used by Capital One to acquire and report credit information.
Equitable Interest: An ownership interest in a property that is demonstrated by actions such as the payment of the current mortgage, property taxes or property insurance rather than by legal ownership.
Equity: The difference between the fair market value and current indebtedness, also referred to as the owner's interest. The value an owner has in real estate over and above the obligation against the property.
Equity(Home Loans): The net worth of a business, consisting of capital stocks, capital surplus, earned surplus, and occasionally, certain net worth reserves.
Equity Fund: A mutual fund that invests primarily in stocks. Also known as a stock fund.
Equity Line Of Credit: A combination of a line of credit and equity loan secured by real property. A maximum loan amount is established based on credit and equity. A mortgage is recorded against the potential borrower's property for said maximum loan amount. The potential borrower has the right to borrow, as needed, up to the amount of the credit line.
Equity Security: Instrument, such as a stock, that represents an ownership interest in a corporation.
Escrow: An account held by the lender into which the home buyer pays money for tax or insurance payments. Also earnest deposits held pending loan closing.
Escrow Disbursements: The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.
Escrow Payment: The part of a mortgagor's monthly payment that is held by the servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due.
Estate (Real Property): Describes the extent and character of a person's rights and interest in real property. Two types of estates frequently financed by mortgage lenders are the fee simple and the leasehold estate.
Exceptions To Guidelines: The consideration of approving a loan having characteristics that don't fit into Ameriquest Mortgage Company guidelines when it makes sense to do so.
Exceptions To Title: Claims against the property as of the date of the title report.
Exchange privilege: The ability to transfer money from one mutual fund to another within the same fund family.
Ex-dividend date: The time period between a fund distribution’s record date and payable date. During this period, investors who purchase shares are not entitled to the distribution payment.
Experian (EXP): Credit bureau used by Capital One to acquire and report credit information. (Formerly TRW)
External Obsolescence: Any influence negatively affecting a property's value that falls outside of the specific property site. An example of this would be a property located under an airport flight pattern.

F (Fixed): If the letter ""F"" appears after the annual percentage rate (APR) the interest rate is fixed and not subject to adjustment.
Face Amount (Life Insurance): The amount the surviving party will receive in the event of death.
Face value: The total value of an investment or insurance policy, usually stated on the ""face"" of the document.
Fair Credit Billing Act (Part of Regulation Z): A federal law to help customers resolve billing disputes with card issuers. Disputes include everything from computational errors and incorrect, charges to the proper crediting of payments. To be protected under the law for billing errors, a customer must notify the issuer in writing within 60 days of the mailing date on the bill containing the error. The issuer is then required to investigate and either correct the mistake or explain why the bill is correct within two billing cycles. The issuer also must acknowledge a customer’s complaint in writing within 30 days of receipt of the notice. Generally, the Act requires issuers to credit payments to a customer’s account as of the date it was received. However, an issuer is allowed to set specific payment guidelines. If any of the guidelines are not met, the issuer can take as many as five days to credit the payment.
Fair Housing Act (FHA): A Federal act that prohibits discrimination in any aspect related to the sale, rental or financing of dwellings on the basis of race, color, religion, national origin, sex, handicap, or familial status.
Farmers Home Administration (FmHA): Provides financing to farmers and other qualified borrowers who are unable to obtain loans elsewhere.
Federal Home Loan Bank Board (FHLBB): The former name for the regulatory and supervisory agency for federally chartered savings institutions. Agency is now called the Office of Thrift Supervision.
Federal Home Loan Mortgage Corporation (Freddie Mac): A quasi-governmental agency that purchases conventional mortgage from insured depository institutions and HUD-approved mortgage bankers. Sometimes referred to as FHLMC.
Federal Housing Administration (FHA): A division of the Department of Housing and Urban Development. Its main activity is the insuring of residential mortgage loans made by private lenders. FHA also sets standards for underwriting mortgages.
Federal National Mortgage Association (Fannie Mae): A tax-paying corporation created by Congress in 1968 that purchases and sells conventional residential mortgages as well as those insured by FHA or guaranteed by VA. This institution, which provides funds for one in seven mortgages, makes mortgage money more available and more affordable. Sometimes referred to as FNMA.
Federal Reserve System: The ""Fed"" is a network of banks established to regulate the national money supply and whose Board sets prevailing national interest rates.
Federal Tax Lien: A lien attaching to a property for nonpayment of a Federal tax. A Federal tax lien differs from other liens in that it's not automatically eliminated by a senior lien holder foreclosing on a mortgage or trust deed recorded before the tax lien.
Fee Simple Estate: An estate under which the owner is entitled to unrestricted powers to dispose of the property, and under which the property can be left by will or inherited. Commonly, a synonym for ownership.
FHA Loan: A loan insured by the Federal Housing Administration open to all qualified home purchasers. While there are limits to the size of FHA loans ($155,250 as of 1/1/96), they are generous enough to handle moderately-priced homes almost anywhere in the country.
FICO: The name given to a numerical score assigned by credit bureaus to measure a borrower's credit characteristics.
Final Disposition: The ""end” of the loan application process, which may happen via denial, withdrawal, incompleteness or funding.
Finance Charge: This is the amount of interest, prepaid finance charges, loan fees and certain insurance premiums the customer will pay over the life of the loan.
Finance Charge(Home Loans): The charge for consumer credit, including interest and certain fees.
Financial quality: A measure of the financial soundness of an institution indicating its ability to honor financial obligations.
Firm Commitment: A promise by FHA to insure a mortgage loan for a specified property and borrower. A promise from a lender to make a mortgage loan.
First Mortgage: The primary lien against a property.
First Position Lien: A secured claim against a property that will be the first claim to be repaid should the property owner someday declare bankruptcy or default on the secured loan.
Fiscal Year: The accounting year used by corporations for tax purposes. A fiscal year runs 12 months, but does not necessarily begin in January.
Fiscal Year(Home Loans): A 365-day accounting period for which a company or mutual fund prepares financial statements.
Fixed Income: Income of a specified and consistent value that is received at specified and consistent intervals. Types of fixed income include social security benefits, VA benefits, pension income, permanent disability benefits, welfare/aid income, and child support/alimony.
Fixed Installment: The monthly payment due on a mortgage loan including payment of both principal and interest.
Fixed Rate: An interest rate that does not vary based on an index but is fixed at a previously disclosed level.
Fixed Rate Mortgage: The mortgage interest rate will remain the same on these mortgages throughout the term of the mortgage for the original borrower.
Fixed-income security: Instrument, such as a bond, that pays a fixed rate of return.
Flood Insurance: Insurance indemnifying against loss by flood damage. Required in federally designated special Flood Hazard Areas. The insurance is private but federally subsidized.
Floor: The lowest an adjustable-rate mortgage rate can ever be during the life of the loan.
Floor Rate: The start rate on an adjustable-rate program.
Foreclosure: A legal process by which the lender or the seller forces a sale of a mortgaged property because the borrower has not met the terms of the mortgage. Also known as a repossession of property.
Foreign currency surcharge: A charge to cover the cost of converting purchases made in a foreign currency to US currency.
Foster Care Agreement: A document that designates an individual as the foster parent of a child. These agreements usually state the income the individual will receive for being a foster parent.
Fraud Protection — 100%: This is our guarantee that when you use your Capital One credit card online or offline, you can rest assured that you will not be liable for any fraudulent or unauthorized charges. We make this promise to you for shopping anytime, anywhere.
Free And Clear: Real property against which there are no liens, especially voluntary liens.
Front-End Debt Ratio: This refers to the debt ratio calculation using only principal, interest, tax and insurance divided by gross monthly income. It's expressed as a percentage.
Full Disclosure: In real estate, revealing all the known facts that may affect the decision of a buyer or tenant.
Fully Amortized ARM: An adjustable-rate mortgage (ARM) with a monthly payment that is sufficient to amortize the remaining balance, at the interest accrual rate, over the amortization term.
Fully Indexed Rate: The fully indexed rate is equal to the rate index plus the loan's margin and is used with adjustable-rate mortgages. Example: If LIBOR is 6.50% and the margin on the loan is 4.00%, the fully indexed rate is 10.50%.
Functional Obsolescence: Anything about the design or construction of a property that negatively affects its value. An example of this would be a property with 5 bedrooms and only 1 bathroom.
Funding: The disbursement of loan funds, either by check or by wire transfer to the title company.

Garnishment: A legal proceeding under which a person's money is in control of another and is taken for payment of a debt. The amount that may be taken is set by statute and, in most states, a judgment is necessary before garnishment.
Gift Letter: A letter to the lender from the donor stating a gift of money has been made to the buyer in order to purchase specific property. The relationship of the donor and donee is stated, as well as the amount of the gift.
Government National Mortgage Association (GNMA): A government associate that provides sources of funds for residential mortgages, insured or guaranteed by FHA or VA. Sometimes referred to as GNMA.
Grace Period: A period of time past the due date for a payment during which a payment may be made and not considered delinquent and no late penalty will be charged.
Grace Period(Home Loans): The period of time you have without a finance charge on new purchases if the total new balance is paid in full each month by the payment due date noted on your periodic billing statement.
Graduated Payment Mortgage (GPM): A type of flexible-payment mortgage where the payments increase for a specified period of time and then level off. This type of mortgage has negative amortization built into it.
Grandfather Clause: The clause in a law permitting the continuation of a use, business etc., which, when established, was permissible but, because of a change in the law, is now not permissible.
Grant Deed: A written instrument used to transfer or convey real property. A grant deed contains warranties against prior conveyances or encumbrances.
Grantee: One who received property rights when a grant is made. Generally, the buyer or purchaser of real property.
Grantor: One who grants property or property rights to another.
Gross Income (Business): The total income earned, either actual or estimated, from a business or property.
Gross Monthly Income (Borrower): The total amount the borrower earns per month, before any expenses are deducted.
Gross Rental Income: The monthly rental income received before mortgage payments, taxes and insurance are deducted.
Group annuity: A pension plan providing annuities at retirement to a group of people under a master contract. It is usually issued to an employer for the benefit of employees.
Growing-Equity Mortgage (GEM): A fixed-rate mortgage that provides scheduled payment increases over an established period of time. The increased amount of the monthly payment is applied directly toward reducing the remaining balance of the mortgage.
Growth Fund: A mutual fund that invests in companies with the potential of accelerating earnings.
Guarantee Mortgage: A mortgage that is guaranteed by a third party.
Guaranteed interest contract: A vehicle for benefit plan sponsors to invest funds at a fixed interest rate for a fixed duration.
Guarantor: An individual who is financially liable for an account and does not have charging privileges.
Guaranty: A promise by one party to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract.

HA mortgage insurance: Requires a fee (up to 2.25 percent of the loan amount) paid at closing to insure the loan with FHA. In addition, FHA mortgage insurance requires an annual fee of up to 0.5 percent of the current loan amount, paid in monthly installments. The lower the down payment, the more years the fee must be paid.
Hazard Insurance: Insurance protecting real property against loss caused by fire, some natural causes, vandalism, etc., depending upon the terms of the policy.
High Yield Money Market: A money market account available through our Direct Banking business offering high rates, services such as online transfers, and a minimum opening deposit of $1. High Yield Money Market accounts are FDIC insured up to $100,000 per depositor.
Holdback: A portion of a mortgage loan held back by the lender from the customer until a contingency is met by the customer. An example of a contingency would be repairs needed for a property's roof. Upon completing the required repairs, the lender releases the held back funds to the borrower.
Home Mortgage Disclosure Act (HMDA): This act requires Ameriquest Mortgage Company to report selected information to the Federal government about each application received. HUD (U.S. Department of Housing and Urban Development) uses HMDA to detect discrimination and identify trends in lending patterns.
Homeowners' Association (HOA): An association of people who own homes in a given area, formed for the purpose of improving or maintaining the quality of the area. Unpaid HOA dues can become a lien against a property.
Homeowners' Association Dues: A monthly payment paid to the association for the maintenance and care of the common areas.
Homestead: Status provided to a homeowner's principal residence by some state statutes; protects a home against judgments up to specified amounts.
Household income: The total income of all members of a household. An important measure used by credit card issuers when evaluating applications for joint credit.
Housing Expenses-to-Income Ratio: The ratio, expressed as a percentage, which results when a borrower's housing expenses are divided by his/her gross monthly income.
HR 10 Plan (Keogh): A retirement plan for small businesses.
HUD-1 Statement (HUD-1a): A document that provides an itemized listing of the funds that are payable at closing. Items that appear on the statement include real estate commissions, loan fees, points, and initial escrow amounts. Each item on the statement is represented by a separate number within a standardized numbering system. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's last payment at closing.

Immediate annuity: A financial vehicle designed to help you manage your money by providing an income stream that begins immediately after (usually six months) you have purchased the annuity.
Impound: That portion of a borrower's monthly payments held by the lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also known as reserves.
Index: A published interest rate against which lenders measure the difference between the current interest rate on an adjustable-rate mortgage and that earned by other investments, which is then used to adjust the interest rate on an adjustable-rate mortgage. Examples include LIBOR, the Prime Rate and Treasury indices. The Wall Street Journal publishes index information.
Index(Home Loans): An objective, published figure (not controlled by the lender) used to establish a lending rate. Some common indices are the London Interbank Offered Rate (LIBOR) and the Prime Rate as listed in the Wall Street Journal.
Indexed rate: The sum of the published index plus the margin. For example if the index were 9% and the margin 2.75%, the indexed rate would be 11.75%. Often, lenders charge less than the indexed rate the first year of an adstable-rate mortgage.
Individual Retirement Account (IRA): A tax-deferred account to which an eligible individual can make annual contributions up to $2,000 ($4,000 for a single-income married couple filing a joint income tax return).
Inflation: A rise in the price of goods and services – often described as too much money chasing too few goods and often associated with a loss of purchasing power.
Initial Adjustment Cap: This is the 1st rate adjustment on an adjustable rate mortgage loan.
Initial Interest Rate: This refers to the original interest rate of the mortgage at the time of closing. This rate changes for an adjustable-rate mortgage (ARM). It's also known as ""start rate"" or ""teaser.
Inquiries: An indication of credit investigations made by companies that are considering granting credit to a person who appears on the credit report.
Installment: The regular periodic payment that a borrower agrees to make to a lender.
Instructions To Title: A form that instructs the title company how to record a lien against a property and issue a title insurance policy.
Insured Mortgage: A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage insurance (MI).
Interest: Money charged over time for the use of money.
Interest(Home Loans): Formal term for the amount you pay to use money. Interest is expressed as a percentage of the amount you borrow. It does not include extra charges such as fees. These are included in the annual percentage rate.
Interest Accrual Rate: The percentage rate at which interest accrues on the mortgage. In most cases, it is also the rate used to calculate the monthly payments.
Interest Bearing: A form of interest calculation in which the loan is charged at a daily or monthly rate on the current outstanding balance.
Interest Caps: Consumer safeguards which limit the amount the interest rate on an adjustable rate mortgage which may change per year and/or the life of the loan.
Interest Rate: Percentage paid for the use of money, usually expressed as an annual percentage.
Interest Rate(Home Loans): The factor used to calculate the finance charge applied to your account, often expressed as an annualized rate.
Interest Rate Buydown Plan: An arrangement that allows the property seller to deposit money to an account. That money is then released each month to reduce the mortgagor's monthly payments during the early years of a mortgage.
Interest Rate Ceiling: For an adjustable-rate mortgage (ARM), the maximum interest rate, as specified in the mortgage note.
Interest Rate Floor: For an adjustable-rate mortgage (ARM), the minimum interest rate, as specified in the mortgage note.
Interim Financing: A construction loan made during completion of a building or a project. A permanent loan usually replaces this loan after completion.
Introductory (or intro) rate: A rate charged by a lender for a short period of time (usually commencing when an account is established). After the introductory period is over, the rate charged increases to the stated post-introductory interest rate. Often called a teaser rate.
Investment grade: Bonds that are rated within one of the top four ratings categories.
Investment Income: Money earned from investments of money, such as stock dividends and annuity payments.
Investment Property: Property used for investment purposes.
Investor: A money source for a lender.
Involuntary Lien: A lien imposed against property by law or legal action without the consent of an owner. Examples include taxes, special assessments, federal income tax liens, judgment liens, mechanics liens and materials liens.
Issuing financial institution: The financial institution that issues a credit card and bills the customer for purchases made against the card account.

Joint credit: Credit issued to two people based on an evaluation of each party's respective assets, incomes, and credit history. Both parties are fully responsible for repaying the debt.
Joint Ownership: Legal title shared by 2 or more persons or entities. Such as joint tenancy, tenancy in common and community property.
Joint Tenancy: A form of holding title in which the property is owned by 2 or more persons who may have rights of survivorship.
Judgment: The decision of a court of law; debts resulting from a court order for payment. Money judgments, when recorded, become a lien against the defendant's property.
Judicial Foreclosure: A court supervised foreclosure process used in states using a mortgage or security deed.
Jumbo Loan: A loan which is larger (more than $240,000 as of 1/1/99) than the limits set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.
Junk bond: A low-rated bond, offering higher interest rates and higher risk, that is most appropriate for aggressive bond investors.
Jurat: A certificate attached to a document stating where, when, before whom and by whom the document was signed.

Keogh (HR 10) Plan: A retirement plan for small businesses.
Kilobyte: A unit of computer memory equal to 1,024 bytes.

Land: Undeveloped land.
Land Burden: An agreement granting limited permission to use the property.
Land Contract: An installment contract for sale with the buyer receiving equitable title and the seller retaining legal title .
Late Charge: The penalty a borrower must pay when a payment is made a stated number of days (usually 15) after the due date.
Late payment fee: A charge to a customer whose monthly payment has not been received as of the due date for payment as shown on the billing statement.
Lease Option To Purchase: A lease containing a clause that allows the tenant the right to purchase the property under specified conditions.
Leasehold: A tenant's right to occupy real estate during the term of the lease. This is a personal property interest.
Leasehold Estate: A kind of real estate ownership through which the property owner doesn't hold title to the property, but instead has use of the property subject to the terms of the lease.
Lease-Purchase Mortgage Loan: An alternative financing option that allows low- and moderate-income home buyers to lease a home with an option to buy. Each month's rent payment consists of principal, interest, taxes and insurance (PITI) payments on the first mortgage plus an extra amount that accumulates in a savings account for a down payment.
Legal Description: A method of geographically identifying a parcel of land that is acceptable in a court of law.
Legal Title: The manner in which property ownership is recorded with the county in which the property is located.
Liabilities: The debts of a person or business.
Liabilities(Home Loans): Amounts set aside to pay future obligations or guarantees, for example, life insurance claims.
Libor: An acronym for London Interbank Offered Rate, one of several published indices. It's the average rate of interest that major London banks charge as they lend to one another.
Lien: A claim upon a piece of property for the payment or satisfaction of a debt or obligation.
Lien Position: The order in which liens will be repaid when the property is transferred to a new owner.
Life annuity: A contract that provides an income for life.
Life expectancy: The average number of years of life remaining for a group of persons of a given age according to a particular mortality table.
Lifetime Cap: This is the cap that limits how high an interest rate can increase over the life of an adjustable-rate mortgage loan. Example: Start rate + 6% = lifetime Cap.
Lifetime Payment Cap: For an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease over the life of the mortgage.
Lifetime Rate Cap: For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the loan. See cap.
Lines Of Credit: A type of mortgage loan from which borrowers can write a check or draw funds. Some lines of credit are also balloon loans. Usually the borrower is given 5 to 10 years to use the line of credit. After this period, many lines of credit require the borrower to pay the loan in full. Others may require the loan to be paid in full over the next 10 to 15 years.
Liquid Assets: Cash or assets, such as checking/savings accounts, stocks/bonds, that are immediately convertible to cash.
Liquidity: A measure of the ease in which an asset may be sold at a reasonable price on short notice.
Lis Pendens: A notice filed or recorded for the purpose of warning all persons that the title or right to the possession of certain real property is in litigation; literally ""suit pending""; usually recorded so as to give constructive notice of pending litigation.
Loads: Sales charges on mutual funds.
Loan: A sum of borrowed money (principal) that is generally repaid with interest.
Loan Amount: The amount of money originally lent to a borrower.
Loan Application (1003): The form potential customers must complete to apply for a home loan. This application is commonly referred to as ""the 1003” and is produced by the Federal government.
Loan Risk: The risk category assigned to a loan, which estimates the probable risk of delinquency and loss in the future.
Loan Term: The loan term is the period of time over which the loan will be paid. First mortgage loans typically have terms of 30, 20 or 15 years.
Loan To Value Ratio (LTV): The loan amount in relationship to the appraised value or selling price expressed as a percentage.
Lock: Lender's guarantee that the mortgage rate quoted will be good for a specific number of days from day of application.
Long-term capital gain (or loss): The profit (or loss) realized from the sale of securities held for more than a year. Net long-term capital gains are currently taxed at a maximum rate of 28%.
Loss Payable Clause: A clause in an insurance policy listing the priority of claims in the event of destruction of the property insured. Generally, a mortgage or beneficiary under a deed of trust is the party appearing in the clause, being paid up to the amount owing under the mortgage or deed of trust before the owner is paid.
Lump sum distribution: A simple payment to a beneficiary and/or investor of an account’s entire current value.

Margin: A constant number, set in the terms of the note, added to an rate index to compute the interest rate on an adjustable-rate mortgage. This fixed number is added to an index to determine the new interest rate when a new change period begins.
Market timing: A risky investment strategy that calls for buying and selling securities in anticipation of market conditions.
Market Value: The highest price a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time.
Market Value(Home Loans): The price at which a security or mutual fund is trading and could presumably be purchased or sold.
Marketability: The probability of selling property at a specific time, price, and terms.
Maturity: The date on which the principal balance of a loan becomes due and payable.
Maturity date: Date on which the principal amount of a note, bond, certificate of deposit, or other debt security becomes due and payable.
Mechanics Lien: A lien created by state law for debts owed to a carpenter, contractor, plumber or other entity hired by the property's titleholder for services performed or materials provided to repair or improve the property.
Merged Credit Profile (MPR): A report combining credit information from as many as 3 different credit bureaus.
Minimum payment: The minimum amount a cardholder can pay to keep the account from going into default. Some card issuers will set a high minimum if they are uncertain of the cardholder’s ability to pay. Most card issuers require a minimum payment of at least 2 percent of the outstanding balance.
MIP (Mortgage Insurance Premium): It is insurance from FHA to the lender against incurring a loss on account of the borrower's default.
Mixed-Use Property: A property in which a portion is used for commercial or retail purposes and the other portion is used for residential purposes. A property can also be considered mixed use if different combinations of uses are present such as commercial/industrial or residential/industrial. For example, a multi-unit dwelling with the front unit used as a commercial store and the back unit used as a dwelling.
Modification Agreement: In the mortgage lending industry, a written directive to the title company to correct a typographical error on instructions to title.
Money market fund: A mutual fund seeking principal stability and income.
Monthly Debt: Your combined monthly debt payment including credit cards, auto loans/leases, and student loans.
Monthly Fixed Installment: That portion of the total monthly payment that is applied toward principal and interest. When a mortgage negatively amortizes, the monthly fixed installment does not include any amount for principal reduction and doesn't cover all of the interest. The loan balance therefore increases instead of decreasing.
Monthly periodic rate: The interest rate factor used to calculate interest charges on a monthly basis. The factor equals the yearly rate divided by 12. See periodic rate.
Mortgage: A legal document that pledges a property to the lender as security for payment of a debt.
Mortgage Banker: A company that originates mortgages exclusively for resale in the secondary mortgage market.
Mortgage Broker: An individual or company that charges a service fee to bring borrowers and lenders together for the purpose of loan origination.
Mortgage Insurance: Money paid to insure the mortgage when the down payment is less than 20 percent.
Mortgage Late: More than 1 payment due at the same time the most recent payment is due.
Mortgage Life Insurance: A type of term life insurance In the event that the borrower dies while the policy is in force, the debt is automatically paid by insurance proceeds.
Mortgagee: The lender.
Mortgagor: The borrower or homeowner.
Mutual fund: A portfolio of several stocks, bonds, and/or money market securities that is owned by many investors and managed by a professional investment company.

National Association of Securities Dealers: The NASD is a self-regulatory body which oversees its members, including the distribution branch of most mutual fund companies.
National Notary Association: An association that sends out necessary application materials and supplies to initiate one's notary commission.
Negative Amortization: Occurs when your monthly payments are not large enough to pay all the interest due on the loan. This unpaid interest is added to the unpaid balance of the loan. The danger of negative amortization is that the home buyer ends up owing more than the original amount of the loan.
Net asset value (NAV): The price of a share of a mutual fund, net of sales charges. Price may vary daily.
Net Disposable Income: Money left after subtracting the principal, interest, taxes and insurance and all other obligations from the monthly net income. The surplus amount the borrower has available for living expenses after housing expenses are subtracted.
Net Effective Income: The borrower's gross income minus federal income tax.
Net Income: The difference between adjusted gross income and operating expenses. May or may not include depreciation.
Net Rental Income: The monthly gross rental income minus the monthly mortgage payments, insurance, maintenance, taxes and other miscellaneous payments.
Net Worth: The difference between total assets and total liabilities of an individual, corporation, etc.
New balance: Outstanding amount calculated as of the statement closing date, also known as total new balance. The new balance may include purchases, cash advances, and special transfers.
Non Assumption Clause: A statement in a mortgage contract forbidding the assumption of the mortgage without the prior approval of the lender. Note: The signed obligation to pay a debt, as a mortgage note.
Non-Conforming Use: A property that doesn't conform to the present zoning of the area it's in.
Non-Owner Occupied: A property used as a residence by a renter/tenant instead of the owner of the property.
Non-Recurring Closing Costs: Fees and costs associated with the closing of a loan, such as title, appraisal, notary fees, etc., that occur only once in the transaction and don't recur.
Notary Public: One who is authorized by the state or Federal government to administer oaths and to attest to the authenticity of signatures.
Note: A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.
Notice Of Default (NOD): A notice filed with a county records office to show that the borrower under a mortgage or deed of trust is in default .
Notice Of Recision: Borrowers' signed acknowledgement that they wish to cancel their loan.
Notice Of Right To Cancel: Under Regulation Z, customers must be notified they are entering into a transaction that will result in a lien against their primary residence. This document explains they have the right to cancel the transaction, at no cost, within 3 business days from the date of signing the closing documents on a loan.
Notification Of Incompleteness Letter: A letter sent to the customer requesting additional information to continue with the loan application process.

Obligations: Any debt or recurring payment the borrower is obligated to pay, except for mortgage payments.
Obsolescence: Condition or process of falling into disuse.
Office of Thrift Supervision (OTS): The regulatory and supervisory agency for federally chartered savings institutions. Formally known as Federal Home Loan Bank Board.
Offline debit card: A card that shares traits of both ATM and credit cards. Offline debit cards have the VISA or MasterCard logo on them and can be issued by a bank, instead of, or in addition to, an ATM card. These cards can be used at any establishment that displays the VISA or MasterCard logo, but using them does not access a line of credit — it debits a customer's checking account. It is ""offline"" because the account is not directly accessed — there's a delay of 24 to 72 hours before the debit is made in the account. If you sign a slip of paper to conclude the transaction, it was offline. In the U.S., no Personal Identification Number (PIN) is required to use an offline debit card.
One-year adjustable: Mortgage whose annual rate changes yearly. The rate is usually based on movements of a published index plus a specified margin, chosen by the lender.
Online account management: A service provided to Capital One cardholders that allows you to view your statements, pay your Capital One credit card bills, and view recent transactions posted to your account.
Online Banking: An Internet site providing the ability to conduct various banking activities such as viewing account balances and history, transferring money to and from accounts, paying bills, reordering checks, and much more. Online Banking is available for Direct Banking, Capital One Auto Finance, and Branch Banking customers living in LA and TX.
Online debit card: An online debit card that deducts funds from the bank account immediately, as soon as the card is used. It may have the VISA or MasterCard logo, or only the issuing bank's logo, like an ATM card. There is no delay for processing the transaction — the money is immediately deducted from your account. In the U.S., if you entered a Personal Identification Number (PIN) during the transaction, it was online.
Origination Fee: The fee charged by a lender to prepare loan documents, make credit checks, inspect and sometimes appraise a property; usually computed as a percentage of the face value of the loan.
Overdraft protection: An overdraft occurs when the balance of your checking account is negative, resulting from writing a check or checks for an amount totaling more than the balance in your account. With overdraft protection, funds are automatically transferred in increments from your linked line of credit to your checking account, to cover the negative balance.
Overimprovement: An improvement, excessive in cost or size, in relation to land value or value of surrounding improvements.
Over-the-limit fee: A fee charged for exceeding the credit limit on the card.
Owner Financing: A property purchase transaction in which the party selling the property provides all or part of the financing.
Owner Occupied: Designation given to property used as the owner's residence.

Par: The principal amount of a mortgage with no premium or discount.
Partnership: An agreement between 2 or more individuals or entities to go into business or invest together. Either partner may bind the other, within the scope of the partnership. Each partner is liable for all the partnership's debts.
Pay Stub: The portion of the paycheck the employee retains for his/her records. The pay stub verifies pay-period and year-to-date gross and net earnings.
Payable date: The date on which a fund’s distribution is paid to shareholder’s.
Pay-down program: The steps for paying down a credit card balance. First, stop charging on the card and make the normal monthly minimum payment by the due date. Then, two weeks later, send half the amount again, and two weeks later, half again. Repeat the half payments on the two-week schedule until the balance is paid.
Payment Caps: Consumer safeguards which limit the amount monthly payments on an adjustable rate mortgage may change.
Payment Change Date: The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment mortgage (GPM). Generally, the payment change date occurs in the month immediately after the adjustment date.
Payment Schedule: This schedule outlines the number of payments due, the amount of each payment and the date payments are due.
Penalty rate: An increase in a card’s annual percentage rate, which may go into effect in the event an account holder defaults on a payment or other obligation. On some cards, a single late payment triggers a penalty rate.
Pension Award Letter: Documentation specifying the frequency and amount of pension payments an individual is eligible to receive.
Pension plan: An employee benefit plan that provides retirement income to participants by means of advance funding or deferral of income.
Periodic Adjustment Cap: This cap limits how much the interest rate can change in the future on an adjustable-rate mortgage.
Periodic Payment Cap: A limit on the amount that payments can increase or decrease during any one adjustment period.
Periodic rate: The APR divided by a unit of time (e.g. monthly periodic rate or daily periodic rate).
Periodic Rate Cap: A limit on the amount that the interest rate can increase or decrease during any one adjustment period, regardless of how high or low the index might be.
Permanent Loan: A long term mortgage, usually ten years or more. Also called an ""end loan.
Personal Identification Number (PIN): A number required to be punched into a keypad before a transaction can be completed. The number can usually be changed by the cardholder and is used as a security measure.
Plaintiff: An individual or entity who files a legal action against another.
Planned Unit Development (PUD): A single-family residence located in a community with association dues and other required monthly payments.
Plat Map: A map dividing a parcel of land into lots, as in a subdivision. For example, a Title/Commitment report and an appraisal report will provide a plat map of the subject property, which shows the location of the property within the subdivision .
Pledged account Mortgage (PAM): Money is placed in a pledged savings account and this fund plus earned interest is gradually used to reduce mortgage payments.
Point Of Reference: A starting point used to put a customer's canceled checks or mortgage statements in chronological order by establishing either the date and amount of the last mortgage payment made or the date and amount of the next mortgage payment due.
Point of sale (POS): The location where the transaction takes place is the point of sale.
Points: A type of fee that lenders charge (the full term to describe this fee is ""discount points""). Simply put, a point is a unit of measure that means 1% of the loan payment. So, if you take out a $100,000 loan, one point equals $1,000. Discount points represent additional money you can pay at closing to the lender to get a lower interest rate on your loan. Usually, for each point on a 30-year loan, your interest rate is reduced by about 1/8th (or .125) of a percentage point.
Points (Loan Discount Points): Prepaid interest assessed at closing by the lender. Each point is equal to 1 percent of the loan amount (e.g., two points on a $100,000 mortgage would cost $2,000).
Posting date: The date that a credit or charge is recorded on your account. This date may differ from the transaction date.
Power Of Attorney: A legal document authorizing one person to act on behalf of another. A power of attorney can be limited to specific areas or be general.
Pre-Approval: The process of determining how much money you will be eligible to borrow before you apply for a loan.
Pre-approved: A credit card with a ""pre-approved"" offer means that a potential customer has passed a preliminary credit screening.
Preliminary Title Report (Prelim): A report showing all current claims against a property before a sale or loan transaction and identifying those items that must be removed to obtain a 1st lien position. After completion of the transaction, a title insurance policy is issued.
Prepaid Expenses: Necessary to create an escrow account or to adjust the seller's existing escrow account. Can include taxes, hazard insurance, private mortgage insurance and special assessments.
Prepaid Finance Charge: The finance charges charged at closing exclusive of interest. Examples include points, processing and application fees, tax certification, etc.
Prepaid Interest Charge: The portion of interest, added on at loan closing, which covers the time period between funding and the beginning of the first 30-day period covered by the first payment. For example, if the loan closed on 2/15, the first payment due on 4/1 retroactively pays interest from 3/1 to 4/1. The prepaid interest would cover the period from 2/15 to 2/28.
Prepayment: A privilege in a mortgage permitting the borrower to make payments in advance of their due date.
Prepayment Penalty: A charge which is assessed when the loan is paid before it's due to compensate the investor for the loss of anticipated interest income. Prepayment penalties are allowed in some form (but not necessarily imposed) in many states.
Prepayment Penalty(Home Loans): A fee charged to a borrower who pays off a loan before it is due. There is no prepayment penalty for a Capital One Personal Loan. You can pay your loan back early if you choose, without fees or fines.
Previous balance: The outstanding balance on the account at the end of the previous billing cycle.
Price to earnings ratio (P/E ratio): A stock’s price divided by its earnings per share, which indicates how much investors are paying for a company’s earning power.
Pricing: The process of determining premium rates, dividend scales, interest crediting rates, and miscellaneous fees, charges, and credits on a company’s products.
Primary cardholder: A person listed on an account who shares financial responsibility with the secondary cardholder.
Primary Customer: The primary borrower on the loan.
Primary Mortgage Market: Lenders, such as savings and loan associations, commercial banks, and mortgage companies, who make mortgage loans directly to borrowers. These lenders sometimes sell their mortgages to the secondary mortgage markets such as to FNMA or GNMA, etc.
Primary Residence: The property in which the customer resides the majority of the time.
Prime rate: An index used to calculate the applicable APR for a variable rate account. One frequently used index is a composite of the average prime rates of the largest commercial banks as published in The Wall Street Journal.
Prime Rate Index: A rate index which is the prevailing rate that banks charge to lend money to corporations.
Principal: The amount of debt on a mortgage, not including interest. The face value of a note, mortgage, etc.
Principal And Interest (P & I): This refers to the principal and interest portions of a monthly mortgage payment.
Principal Balance: The outstanding balance of principal on a mortgage not including interest or any other charges.
Principal, Interest, Taxes, and Insurance (PITI): The total of the monthly mortgage payment due, which includes all principal, interest, taxes and insurance. Principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing money. Taxes and Insurance refer to the monthly cost of property taxes and homeowners insurance, whether these amounts that are paid into an escrow account each month or not.
Private label cards: A card issued by a retail outlet, such as a department store or gasoline company, that contains the logo of the private company. It is generally accepted only by the retailer who issued it. Retailers partner with a bank or a card-issuing management company to back the cards.
Private Mortgage Insurance (PMI): In the event that you do not have a 20 percent down payment, lenders will allow a smaller down payment - as low as 3 percent in some cases. With the smaller down payment loans, however, borrowers are usually required to carry private mortgage insurance. Private mortgage insurance will usually require an initial premium payment and may require an additional monthly fee depending on your loan's structure.
Private Mortgage Insurance (PMI)(Home Loans): If you put less than 20% down on most loans, you'll be asked to protect the lender by carrying Private Mortgage Insurance (PMI). Carrying PMI ensures that the debt is repaid if you default on the loan. This charge adds approximately an extra half a percent onto the loan. FHA mortgages, in return for their low-down-payment requirements, also charge for mortgage insurance premiums (MIP).
Pro Rate: To divide in proportionate shares, such as taxes, insurance, rent or other items that buyer and seller share as of the time of closing, or other agreed upon time.
Profit And Loss Statement (P & L): A statement documenting business revenues and expenses for a specified time period to establish whether a business gained a profit or suffered a loss.
Promissory Note: A written promise by the borrower to pay a debt owed, within a specified time, to the holder of the note under conditions mutually agreed upon.
Property Taxes: Generally, a tax levied on both real and personal property. The amount of the tax is dependent on the value of the property.
Property Value: Appraised value of your home, i.e., what it will sell for.
Prospectus: A legal document detailing a fund’s investment objective, financial highlights, and fees.
Proxy: A shareholder vote on matters that require shareholders’ approval.
Public offering price (POP): A mutual fund share’s purchase price, including sales charges.
Purchase Agreement: The agreement made between the buyer and seller of a property, containing the purchase price and contingencies of the sale.
Purchase Price: Amount paid when purchasing a home.

Qualified plan: A plan which the Internal Revenue Service approves as meeting the requirements of Section 401(a) of the 1954 Internal Revenue Code. Such plans receive tax advantages.
Qualifying Ratios: Calculations used to determine if a borrower can qualify for a mortgage. They consist of two separate calculations: a housing expense as a percent of income ratio and total debt obligations as a percent of income ratio.
Quitclaim Deed: A deed operating as a release; intended to pass any title, interest or claim that the grantor may have in the property, but not containing any warranty that such title is valid, nor containing any warranty or covenants for title.

Rate Change Date: On an adjustable rate loan, this is the date a new interest rate will be put into effect. This change can occur every 6 months, 24 months, or 36 months depending on the terms of the note.
Rate Lock: A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate and lender costs for a specified period of time.
Rating agency: A firm which thoroughly evaluates all aspects of a company’s operations in order to determine its financial quality and issues debt and claims-paying-ability ratings (e.g. Moody’s Investors Service and Standard & Poor’s Corporation).
Real Estate Agent: A person licensed to negotiate and transact the sale of real estate on behalf of the property owner.
Real Estate Settlement Procedures Act (RESPA): A Federal law that requires lenders to disclose, in advance, an estimate of the costs associated with a loan and prohibits ""kickbacks” for referring business to 3rd parties associated with a loan. The law requires lenders to furnish the information after application only.
Real Property: Land and all attachments to the land, such as buildings, crops or mineral rights. Ownership of real property can be divided into various types of interests and rights.
Realtor: A real estate broker or an associate holding active membership in a local real estate board affiliated with the National Association of Realtors.
Rebuild Letter: A letter provided by the appropriate municipality, stating a structure on a specific property can be rebuilt as originally constructed in the case of damage or destruction.
Recent Activity: Transactions posted to your account for the current billing cycle. Recent activity will reflect all activity that has posted on your account since the last statement. If you have not made any transactions since your last statement, this section will not have any entries. If you have made a transaction and it does not appear, that transaction may not have posted to your account yet.
Recision: The cancellation of a contract. With respect to mortgage refinancing, the law that gives the homeowner three days to cancel a contract in some cases once it is signed if the transaction uses equity in the home as security.
Reconveyance (Recon): An instrument used to transfer title from a trustee to the property owner when title is held as security for a debt. Most commonly used upon payment in full of a mortgage or trust deed.
Record date: The date on which a shareholder must officially hold fund shares in order to be entitled to a distribution payment.
Recording: The act of recording a document such as a deed or mortgage in a public registry thereby giving notice to future purchasers, creditors or other interested parties. Recording is controlled by statute and usually requires the witnessing and notarizing of an instrument to be recorded.
Recording Confirmation: Notification from the title company verifying the lien has recorded as instructed.
Recording Fees: Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.
Redemption: Sale of mutual fund shares by a shareholder.
Refinance: Obtaining a new mortgage loan on a property already owned. Often to replace existing loans on the property.
Regulation Z (Reg Z): Federal Reserve regulation issued under the Truth-in-Lending Law, which requires a credit purchaser be advised in writing of all costs connected with the credit portion of the purchase.
Release Of Lien: When a lien against the property is satisfied, the note holder records a document that reflects the discharge of the obligation and releases the lien recorded against the property.
Release Of Mortgage: A recordable instrument that transfers title from a mortgagee to the mortgagor when title is held as collateral security for a debt. Most commonly used upon payment in full of a mortgage.
Renegotiable Rate Mortgage: A loan in which the interest rate is adjusted periodically.
Rental Agreement: A contract used by property owners who rent their property to another individual. Rental agreements should state the amount of rent the customer will collect from the renter.
Request For Full Reconveyance: Written instructions provided by the beneficiary to the trustee to issue a deed of reconveyance when the conditions of obligation have been fulfilled.
Requirements To Be Met: Exceptions to be cleared and other actions that must be taken for a title company to issue a final title policy per the lender's instructions.
Re-Recording: The recording of a deed for a second time to correct an error contained in the deed originally recorded.
Rescind: To void or cancel in such a way as to treat the contract, or other object of the rescission, as if it never existed.
Reverse Annuity Mortgage (RAM): A form of mortgage in which the lender makes periodic payments to the borrower using the borrower's equity in the home as collateral for and repayment of the loan.
Revolver: A term credit card issuers use for cardholders who roll over part of the account balance to the next month, instead of paying off the balance in full each month.
Revolving Liability: A credit arrangement, such as a credit card, that allows a customer to borrow against a preapproved line of credit when purchasing goods and services.
Revolving line of credit: An agreement to lend a specific amount to a borrower and to allow that amount to be borrowed again once it has been repaid. Most credit cards are considered to have a revolving line of credit.
Rider: A rider is an addition to the security instrument.
Right Of Survivorship: If one property owner dies, all ownership rights automatically belong to the surviving owner.
Room Rents: Income a homeowner receives from renting rooms in the same property in which they live.
Rural: A term used to describe a property's location. For example, rural properties are in remote locations, on non-paved access roads or streets with support services more than 10 miles away. Rural is also a term used to describe the country as opposed to the city .

Satisfaction: Discharge of an obligation by payment of the amount due, as on a mortgage, trust deed or contract or payment of a debt awarded, such as a satisfaction of a judgment.
Satisfaction of Mortgage: The document issued by the mortgagee when the mortgage loan is paid in full. Also called a release of mortgage.
Schedule A: A section of the Preliminary Title Report/Title Commitment that lists the name of the proposed insured, amount of title insurance, estate, or interest in the land, how legal title is vested and the legal description of the property.
Schedule B: A section of the Preliminary Title Report/Title Commitment that lists exceptions to title if any.
Second Mortgage: A 2nd loan, on the same property, that is in a junior lien or subordinate position.
Secondary Financing: A loan secured by a 2nd mortgage or trust deed of real property.
Secondary Mortgage Market: The place where primary mortgage lenders sell the mortgages to investors in order to obtain more funds to originate more new loans. It provides liquidity for the lenders.
Secondary Residence: A property used by a person as a second residence, not as an investment.
Secondary user: A person who has jointly applied for a credit card and has financial responsibility for the repayment of the account balance.
Section 32: A section of the Federal Truth-in-Lending Act pertaining to high fee loans and the restrictions and compliance issues with which this type of loan transaction must comply.
Sector fund: A mutual fund that focuses on investments in one industry or economic sector.
Securities and Exchange Commission (SEC): Federal agency that oversees the registration and distribution of company stock and mutual fund shares.
Security: The property that will be pledged as collateral for a loan.
Security Instrument: The security instrument is used to identify and encumber the real property used as collateral for the loan. It's notarized and then recorded with the county in which the property is located. Once recorded, it secures an interest in, or lien against, the property. The security instrument used is state specific. Examples are, deed of trust, security deed, a trust deed or a mortgage.
Self-administered (trusteed or directly invested plan): A plan generally funded through a bank which directly invests in the accumulated funds. Retirement payments are made from the fund as they are due.
Seller Carry-Back: An agreement in which the owner of a property provides financing, often in combination with an assumable mortgage. See owner financing.
Separate account: An asset account established by a life insurance company separate from other funds, used primarily

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