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
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