LienLegal claim against a property. Once the property is sold, the lien holder is then paid the amount that is owed.
Lien StatusFor HMDA reporting purposes, lenders are required to report lien status for loans they originate and applications that do not result in originations…
LienholderA lienholder is the bank, finance company, credit union, other financial institution, or individual with whom you signed an agreement to borrow money…
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 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…
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 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 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.
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.
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.
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 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 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 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 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 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 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-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.
Logarithmic scaleOn a logarithmic scale or graph, comparable percentage changes in the value of an investment, index, or average appear to be similar.
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…
Lowest FloorThe lowest floor of the lowest enclosed area (including a basement). An unfinished or flood-resistant enclosure, usable solely for parking of vehicles…
Lump sumA lump sum is an amount of money you pay or receive all at once rather than in increments over a period of time.
Lump-Sum DistributionWhen you retire, you may have the option of taking the value of your pension, salary reduction, or profit-sharing plan in different ways.
luxury taxA tax paid on expensive goods and services considered by the government to be nonessential.
Maine State Housing Authority (MSHA)(MSHA)A mortgage program available only to first-time homebuyers within the State of Maine . Income limitations are applicable.
Make a marketA dealer who specializes in a specific security, such as a bond or stock, is said to make a market in that security.
Managed accountA managed account is a portfolio of stocks or bonds chosen and managed by a professional investment manager who makes the buy and sell decisions.
management companyThe business entity that establishes, promotes and manages a fund or funds.
management expense feeThe sum paid to the investment company's advisor or manager for supervising its portfolio and administering its operations.
management expense ratioA measure of the total cost of operating a fund as a percentage of average total assets.
Management feeA management fee is the percentage of your account value that an investment company or manager charges to handle your account.
Mandatory PurchaseUnder the provisions of the Flood Disaster Protection Act of 1973, individuals, businesses, and others buying, building, or improving property located in…
Manufactured (Mobile) HomeA structure, built on a permanent chassis, transported to a site in one or more sections, and affixed to a permanent foundation.
Margin AccountArrangement with a broker or financial institution permitting a customer to borrow in order to cover the cost of investment purchases.
Margin callTo protect the margin loans they make, brokers issue a margin call if your equity in your margin account falls below the required maintenance level of at…
margin debtThe difference between the collateral deposited by the client and the amount borrowed (currently a maximum of 50 percent of the current market value of…
Margin requirementThe margin requirement is the minimum amount the Federal Reserve, in Regulation T, requires you to deposit in a margin account before you can trade…
Marginal tax rateBecause the US income tax system is progressive, your tax rate rises as your taxable income rises through two or more tax brackets.
Mark to the marketWhen an investment is marked to the market, its value is adjusted to reflect the current market price.
MarkdownA markdown is the amount a broker-dealer earns on the sale of a fixed-income security and is the difference between the sales price and what the seller…
MarketTraditionally, a securities market was a place - such as the New York Stock Exchange (NYSE) - where members met to buy and sell securities.
Market capitalizationValue of a corporation as determined by the market price of its issued and outstanding securities.
Market cyclesMarket cycles are the recurrent patterns of expansion and contraction that characterize the securities and real estate markets.
market economyAn economic system based on private enterprise that rests upon three basic freedoms: freedom of the consumer to choose among competing products and…
Market makerA broker-dealer who is prepared to buy or sell a specific security - such as a bond or at least one round lot of a stock - at a publicly quoted price, is…
Market orderAn order to buy or sell a security immediately at the best possible price.
Market PriceThe price at which a security trades (i.e. could be purchased or sold) in the secondary market.
Market riskMarket risk, also known as systematic risk, is risk that results from the characteristic behavior of an entire market or asset class.
Market timingMarket timing means trying to anticipate the point at which a market has hit, or is about to hit, a high or low turning point, based on historical…
Market ValueThe price that the market - any market - sets at a particular time as the price at which an asset can be bought or sold.