Real Estate Financing: Practices
Terms
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- Adjustable-rate-mortgage (ARM)
- A loan characterized by a fluctuating interest rate, usually one tied to a band or savings and loan association cost-of-funds index
- Amortized Loan
- A loan in which the principal as well as the interest is payable in monthly or other periodic installments over the term of the loan
- Balloon Payment
- A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized
- Blanket Loan
- A mortgage covering more than one parcel of real estate, providing for each parcel's partial release from the mortgage lien upon repayment of a definite portion of the debt
- Community Reinvestment Act of 1977 (CRA)
- Under the Act, financial instructions are expected to meet the deposit and credit needs of their communities; participate and invest in local community development and rehabilitation projects; and participate in loan programs for housing, small businesses, and small forms.
- Computerized Loan Origination (CLO)
- An electronic network for handling loan applications through, remote computer terminals linked to various lenders' computers
- Construction Loan
- A short-term loan usually made during the construction phase of a building project
- Conventional Loan
- A loan that requires no insurance or guarantee
- Equal Credit Opportunity Act (ECOA)
- The federal law that prohibits discrimination in the extension of credit because of race, color, religion, national origin, sex, age, or marital status
- Fannie Mae
- A quasi-government agency established to purchse any kind of mortgage loans in the secondary mortgaged market from the primary lenders
- Farm Credit System (System)
- A federal agency of teh Department of Agricultural that offers programs to help families purchase or operate family farms.
- Farmer Mac
- An agency that operates similiary to Fannie Mae and Freddie Mac, but for agricultural loans