The legal proceedings initiated by a creditor to repossess the collateral for a loan that is in default, usually with the intent to liquidate the seized assets in an auction.
- Browse Related Terms: Default, Foreclosure, Implied Writedown, Legacy Assets, liquidation, Market price, Mortgage-Backed Security (MBS), Asset-Backed Security (ABS), Collateral, Put Option, Foreclosure
The rate by which house prices increase (or decrease) for a specified area, usually quoted on an annual basis.
- Browse Related Terms: Annual percentage yield (APY), Debt-to-income ratio (DTI), Interest rate index, Payoff statement, Periodic rate, Regular Program Community, Special Flood Hazard Area (SFHA), Terms, Usury, Variable rate, Home Price Appreciation (HPA), Investment Grade, Tranche
A security with a rating of BBB- or above.
- Browse Related Terms: Annual percentage yield (APY), Debt-to-income ratio (DTI), Interest rate index, Payoff statement, Periodic rate, Regular Program Community, Special Flood Hazard Area (SFHA), Terms, Usury, Variable rate, Home Price Appreciation (HPA), Investment Grade, Tranche
The initial Note Principal Balance (also known as Par) of a given security on the closing date less all principal payments made on the security, including all guarantee payments in respect to principal, made prior to the measurement date.
- Browse Related Terms: Conforming Loans, Loan-to-Value (LTV), Maturity, Maturity Date, Overcollateralization, Par (Face) Value, Parity Payment, Payoff, Weighted Average Coupon, Non-Agency RMBS, Principal Paydown, Note Principal Balance (Unpaid), Weighted Average Life
The annualized rate at which borrowers pay off their loans ahead of schedule. Also referred to Constant Prepayment Rate, or CPR.
- Browse Related Terms: 30 Days Delinquent, 60 Days Delinquent, Bankrupt, Default Rate, Excess Spread, 90 Days Delinquent, Underlying Security (-ies), Prepayment Speed, Underlying Loans
The ownership of collateral property by the lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common when the property up for sale at an auction is worth less than the total amount owed to the bank (including the outstanding loan amount, accrued interest, and any fees associated with the foreclosure sale).
- Browse Related Terms: Certificate of release, mortgage correspondent lender, mortgage lender, Mortgagee, Mortgagor, Redlining, Satisfaction of mortgage, Real Estate Owned (REO)
A loss recognized when assets are sold for a price less than the outstanding principal balance of the asset plus interest and liquidation expenses.
- Browse Related Terms: Annual Percentage Rate (APR), Balance Transfer, Coupon Rate, Cumulative Loss, Late Charge, Loss Severity, Principal balance, Realized Loss
The process through which financial assets are pooled, transferred to a trust or other Special Purpose Entity (SPE), and issued and sold to investors in the capital markets.
- Browse Related Terms: Annuity, Beneficiary, Collective Investment Funds (CIFs,CIF), Estate account, Fiduciary, fiduciary capacity, non-banking corporations acting in a, limited purpose trust company, share, Trust Account, wholesale banking, Asset Management Estate (AME), Medium Term Note (MTN), Temporary Corporate Credit Union Stabilization Fund (Stabilization Fund), Securitization
A general term for stocks, bonds, options, subscription rights, warrants and other tradable investments that confer a right to income or ownership.
- Browse Related Terms: Bond, U.S. Savings, community bank, Index-linked Certificate of Deposit, merchant banking, money-market fund, Mutual Fund, Power of attorney, savings and loan association, savings bank, security, Uniform Commercial Code (UCC), Uniform Gift to Minors Account, Security (-ies)
Loans extended to borrowers who do not qualify for the best market interest rates due to a deficient credit history and/or a low credit score.
- Browse Related Terms: Credit Enhancement, Disclosures, Line of Credit, Loan Contract, Loan Fee, Loan Modification Provision, Loan proceeds, Loan-to-value ratio (LTV), Open-End Credit, Payday Loans, Prepayment penalty, Prime Loans, Private Mortgage Insurance (PMI), Renewal, Revolving Credit, Right of rescission, Student Loan, Truth-In-Lending Act (TILA), Usury Rates, Atl-A Loans, Subprime Loans
One of several related securities issued in a Securitization transaction. Tranches in the same transaction may have different maturity, subordination and interest rate characteristics, and may represent a different slice of the transaction's risk. Transaction documentation may define the tranches as different "classes" of securities, each identified by a letter (e.g. the Class A, Class B, or Class C securities) and each tranche may have a different credit rating.
- Browse Related Terms: Annual percentage yield (APY), Debt-to-income ratio (DTI), Interest rate index, Payoff statement, Periodic rate, Regular Program Community, Special Flood Hazard Area (SFHA), Terms, Usury, Variable rate, Home Price Appreciation (HPA), Investment Grade, Tranche
Loans underlying a security that produce the cash flows used to pay off that security.
- Browse Related Terms: 30 Days Delinquent, 60 Days Delinquent, Bankrupt, Default Rate, Excess Spread, 90 Days Delinquent, Underlying Security (-ies), Prepayment Speed, Underlying Loans
A company or other entity that administers the public issuance and distribution of securities from a corporation or other issuing body. An underwriter works closely with the issuing body to determine the offering price of the securities, buys them from the issuer and sells them to investors via the underwriter's distribution network.
- Browse Related Terms: agent, agent of issuer, branch office, securities, broker-dealer, investment adviser, investment adviser agent, Issuer, registration by coordination, registration by qualification, regulation a, Regulation D, small corporate offering registration (scor) (see registration by qualification), Underwriter
The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding.
- Browse Related Terms: Conforming Loans, Loan-to-Value (LTV), Maturity, Maturity Date, Overcollateralization, Par (Face) Value, Parity Payment, Payoff, Weighted Average Coupon, Non-Agency RMBS, Principal Paydown, Note Principal Balance (Unpaid), Weighted Average Life