Lien StatusFor HMDA reporting purposes, lenders are required to report lien status for loans they originate and applications that do not result in originations…
Lien WaiverA document that releases a consumer (homeowner) from any further obligation for payment of a debt once it has been paid in full.
LienholderA lienholder is the bank, finance company, credit union, other financial institution, or individual with whom you signed an agreement to borrow money…
Life CapA limit on the range interest rates can increase or decrease over the life of an adjustable-rate mortgage (ARM).
Life expectancyYour life expectancy is the age to which you can expect to live. Actuarial tables establish your official life expectancy, which insurance companies use…
Life insuranceLife insurance is a contract you sign with an insurance company, obligating it to pay a death benefit of a certain value to the beneficiaries you name.
Life settlementIf you are over age 70 and no longer need your life insurance policy, you may be able to sell it to a third party in what's called a life settlement.
Lifecycle fundA lifecycle fund, which is a fund of funds, invests in individual mutual funds that a fund company puts together to help investors meet their objectives…
Lifeline accountA lifeline account is a basic checking account with low or no minimum deposit and balance requirements and very low or no monthly fees.
Lifetime CapFor an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate or monthly payment can increase or decrease over the life of the loan.
Lifetime learning creditYou may qualify to claim a lifetime learning tax credit of up to $2,000 each year for qualified higher educational expenses for yourself, your spouse, or…
LightA pane of glass; a window, or a compartment of a window.
LightingThe method or equipment for providing artificial illumination.
Limit orderAn order to buy or sell securities in which the client has specified the price. The order can be executed only at the specified price or a better one.
Limit priceA limit price is the specific price at which you tell your stockbroker to execute a buy or sell order on a particular security.
limited branchLimited branch means any office at a fixed location of a Connecticut bank at which banking business is conducted other than the main office, branch or…
Limited liability companyOrganizing a business enterprise as a limited liability company (LLC) under the laws of the state where it operates protects its owners or shareholders…
Limited partnerA limited partner is a member of a partnership whose only financial risk is the amount he or she has invested.
Limited partnershipA limited partnership is a financial affiliation that includes at least one general partner and a number of limited partners.
limited purpose trust companyA limited purpose trust company engages only in fiduciary services. It does not accept deposits, and funds are not insured by the FDIC.
Limited TortLimited Tort offers you a savings on your premiums. You are still able to recover all out-of-pocket medical and other expenses; however, you are not able…
LimitsThe maximum amount of benefits the insurance company agrees to pay under an insurance policy in the event of a loss.
Line of CreditA pre-approved loan authorization with a specific borrowing limit based on creditworthiness.
LintelA horizontal structural element over an opening which carries the weight of the wall above it.
Lipper, IncLipper provides financial data and performance analysis for more than 30,000 open- and closed-end mutual funds and variable annuities worldwide.
Liquid AssetLiquid assets are accounts or securities that can be easily converted to cash at little or no loss of value.
Liquidated damage (LD)(LD)Liquidated damage (LD) is an amount which is fixed or stipulated by the parties at the inception of the contract and which is a reasonable estimate of…
liquidationThe process through which the assets backing a defaulted loan are sold for cash.
LiquidityThe ability of the market for a security to absorb a reasonable amount of buying or selling without major price changes.
Listed securityA listed security is a stock, bond, options contract, or similar product that is traded on an organized exchange.
Listed transactionA reportable transaction that is the same as, or substantially similar to, a transaction specifically identified by the IRS or FTB as a tax avoidance…
Listing AgreementA contract between a seller and a real estate professional to market and sell a home.
Listing BrokerThis is the real estate broker that represents the sellers. They will market the property to bring buyers, which in turn bring offers to the seller.
Listing requirementListing requirements are the standards a corporation must meet to have its stock or bonds traded on a particular exchange.
Living willA living will is a legal document that describes the type of medical treatment you want-or don't want-if you are terminally ill or unable to communicate…
LoadCommissions charged on the purchase or sale of mutual fund units.
Load fundSome mutual funds charge a load, or sales commission, when you buy or sell shares or, in some cases, each year you own the fund.
LoanA transaction in which one entity, the lender, allows another, the borrower, to use property.
Loan AccelerationAn acceleration clause in a loan document is a statement in a mortgage that gives the lender the right to demand payment of the entire outstanding balance…
Loan Application NumberA unique identifier (up to 25 characters long) that can be used to retrieve the particular loan application to which the entry relates.
Loan Application Register (LAR)(LAR)also known as the HMDA-LAR, the LAR, or the Register. The term LAR refers to the loan application register format that has been prescribed for reporting…
Loan ContractThe written agreement between a borrower and a lender in which the terms and conditions of the loan are set.
Loan FeeA fee charged by a lender to make a loan (in addition to the interest charged to the borrower).
Loan flipThe lender encourages you to get additional cash by refinancing your mortgage again and again.
Loan FraudPurposely giving incorrect information on a loan application in order to better qualify for a loan; may result in civil liability or criminal penalties.
Loan modificationAn adjustment or compromise of an existing residential mortgage loan. (Excludes a refinancing transaction.)
Loan modification activitiesFor compensation or gain, or in the expectation of compensation or gain, engaging in or offering to engage in effecting loan modifications in Idaho.
Loan Modification ProvisionA contractual agreement in a loan that allows the borrower or lender to permanently change one or more of the terms of the original contract.
Loan noteA loan note is a promissory agreement describing the terms of a loan and committing the person or institution borrowing the money to live up to those…
Loan OfficerA representative of a lending or mortgage company who is responsible for soliciting homebuyers, qualifying and processing of loans.
Loan OriginationThe process by which a lender makes a loan which may include taking a loan application, processing and underwriting the application, and closing the loan.
Loan Origination FeesFees charged by the lender for processing the loan and which are often expressed as a percentage of the loan amount.
Loan ProceedsThe net amount of funds that a lending institution disburses under the terms of a loan, and which the borrower then owes.
Loan PurposeIndicates whether the purpose of the loan or application was for home purchase, home improvement, or refinancing.
Loan ServicerThe company that collects monthly mortgage payments and disperses property taxes and insurance payments.
Loan TermThe period of time between the start date and the termination date of a note or mortgage.
Loan to Value (LTV) Ratio(LTV)in real estate lending, the outstanding principal amount of the loan divided by the appraised value of the property underlying the loan.
Loan TypeIndicates whether the loan granted, applied for, or purchased was conventional, government-guaranteed, or government-insured.
Loan-to-Value (LTV)(LTV)The ratio of the outstanding principal amount of a mortgage loan to the appraised value of the mortgaged property.
Loan-to-Value Ratio (LTV)(LTV)The ratio of the loan principal (amount borrowed) to the appraised value (selling price).
Loan-to-Value Ratios (LTV)(LTV)The ratio of mortgage amount to value or sales price of a home. (Mortgage amount divided by value or sales price.).
Loan/Mortgage BrokerAn organization that provides (or offers to provide) the service of improving your credit record, obtaining a loan for you, or providing advice or…
lobbyistA person who represents the concerns or special interests of a particular group or organization in meetings with lawmakers.
Local area personal incomeIncome that is received by, or on behalf of, all persons who live in the local area.
Local CheckA check payable by, at, or through a bank in the same check processing region as the location of the branch of the depository bank.
Lock-InThe process by which a lender commits to lend at a particular rate as long as the mortgage transaction closes within a specified time period.
Lock-in agreementA written agreement guaranteeing a homebuyer a specific interest rate on a home loan provided that the loan is closed within a certain period, such as 60…
Lock-in PeriodThe length of time that the lender has guaranteed a specific interest rate to a borrower.
Lock-In RateA written agreement guaranteeing a specific mortgage interest rate for a certain amount of time.
Lock-up periodA lock-up period is the time during which you cannot sell an investment that you own.
LockingYour Interest rate on a mortgage loan request for a specified period of time.
LockoutLockout means a labor dispute involving a work stoppage, wherein an employer withholds work from its employees in order to gain a concession from them.
Logarithmic scaleOn a logarithmic scale or graph, comparable percentage changes in the value of an investment, index, or average appear to be similar.
Loggia1. An arcaded or colonnaded structure, open on one or more sides, sometimes with an upper story. 2.
longA term signifying ownership of securities. "I am long 100 XYZ," means that the speaker owns 100 shares of XYZ.
Long bondThirty-year bonds issued by the US Treasury are referred to as long bonds. The interest rate on the long bond is typically but not always higher than the…
Long positionHaving a long position in a stock means you own the security. You have the right to collect the dividends or interest the security pays, the right to sell…
long-distance telephone tax refundTaxpayers are eligible to file for refunds of all excise tax they have paid on long-distance service billed to them after Feb. 28, 2003.
Long-term capital gain (or loss)When you sell a capital asset that you have owned for more than a year at a higher price than you paid to buy it, any profit on the sale is considered a…
Long-term care insuranceLong-term care insurance is a policy designed to cover at least some of your expenses if you have a chronic but not life-threatening illness, long-term…
Long-term equity anticipation securities (LEAPS)These long-term options on stocks have expiration dates of up to three years rather than the shorter terms of most stock options, which are never longer…
Loose creditIn order to combat a sluggish economy, the Open Market Committee of the Federal Reserve (the Fed) may institute a loose credit policy.
LoserStocks whose market prices drop the most during the trading day are described, rather bluntly, as losers.
LossThe amount an insurance company pays on a claim.
Loss (Realized Gain)A gain (loss) that has occurred financially. The difference between the principal amount received and the cost basis after the sale of an asset.
Loss (Unrealized Gain)A profit (loss) that has not been realized through the sale of a security. The gain (loss) is realized when a security or futures contract is actually…
Loss historyRefers to the number of insurance claims previously filed by a policyholder. A company will consider loss history when underwriting a new policy or…
Loss MitigationThe full range of solutions that may avert either the loss of a debtor’s property to foreclosure, increased costs to the lender or both.
Loss of useA provision in homeowners and renters insurance policies that reimburses policyholders for the additional costs (housing, food, and other essentials) of…
Loss SeverityThe percentage of realized losses incurred on a loan balance subsequent to liquidation.
Low-Down-Payment FeatureA feature of some mortgages, usually fixed-rate mortgages, that helps you buy a home with as little as a 3% down payment.
Low-income housingHousing intended to be occupied by low- or moderate-income persons that is eligible for special tax credits under the 1986 tax act.
Lowest FloorThe lowest floor of the lowest enclosed area (including a basement). An unfinished or flood-resistant enclosure, usable solely for parking of vehicles…
LPC StaffThe staff of the Landmarks Preservation Commission acting in the Commission's agency capacity.
LTV (loan-to-value)The relationship between the amount of money borrowed and the apparised value of the property.