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In the context of bank supervision, capitalization refers to the funds a bank holds as a buffer against unexpected losses. It includes shareholders’ equity, loss reserves, and retained earnings. Bank capitalization plays a critical role in the safety and soundness of individual banks and the banking system. In most cases, federal regulators set requirements for adequate bank capitalization.
- Browse Related Terms: Agency Code, Branch Office, Capitalization, Depository Institution, Federal Financial Institutions Examination Council (FFIEC), Federal Home Loan Bank Act of 1932, Federal Home Loan Bank Board (“FHLBank Board”), Federal Home Loan Banks (FHLBanks), Federal Housing Administration (FHA), Federal Savings and Loan Insurance Corporation (FSLIC), FHA Approved Lenders, Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), Nondepository Institution, Respondent or Reporter ID (RID), Thrift
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When refinancing, taking a loan for more than you owe on your existing mortgage. Your existing mortgage is paid off and you receive an additional payment for the balance of the new loan. You might do this if you want to make home improvements or pay for a child's education. Cash-out refinancing removes some of the equity you have built up in your home.
- Browse Related Terms: "Bait-and-switch" schemes, Alt-A Mortgages, Balloon Payment, cash-out refinancing, Collections, Delinquency, Home improvement scams, Loan flip, Loan modification, Mortgage Modification, Prepayment penalty, Prime, Prime Mortgages, Refinance, Subprime, Subprime Mortgages
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A census tract is a small geographic area. Census 2000 assigned census tract numbers to all areas of the U.S. and some U.S. territories and possessions. Census tract numbers are unique within a county. Institutions are required to use census tract numbers from the Census 2000 series beginning with calendar year 2003 data through calendar year 2011 HMDA data.
- Browse Related Terms: Activity Year, Census Tract, County Code, Geocode, Metropolitan Division (MD), Metropolitan Statistical Area (MSA), Metropolitan Statistical Area (MSA) / Metropolitan Division (MD), Quality Edits, State Code, Syntactical Edits, Validity Edits
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this type of bankruptcy sets a payment plan between the homeowner and the creditor monitored by the bankruptcy court. The homeowner can keep the property, but must make payments according to the court's terms within a three to five year period.
Departments of the Treasury & Housing and Urban Development, Making Home Affordable Program - Cite This Source - This Definition- Browse Related Terms: Chapter 13 Bankruptcy, Debt-to-income (DTI), Escrow, Escrow Account, Escrow Analysis, Forbearance, Home Affordable Unemployment Program (UP), Housing expense, Monthly Gross Income (MGI), Mortgage Payment, Mortgage Payment Guideline, Pricipal, interest, taxes, insurance and homeowners association dues (PITIA), Primary or Principal Residence, Repayment Plan, Servicer, Underwriting
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a bankruptcy that requires assets be liquidated in exchange for the cancellation of debt.
Departments of the Treasury & Housing and Urban Development, Making Home Affordable Program - Cite This Source - This Definition- Browse Related Terms: Chapter 7 Bankruptcy, Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), Investment Property, Mortgage-Backed Securities (MBS), Preferred Stock, Primary Mortgage Market, Secondary Mortgage Market, Securitization
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when selling a house, the process of transferring ownership from the seller to the buyer, the disbursement of funds from the buyer and the lender to the seller, and the signing of all the documents associated with the sale and the loan. On a refinance, there is no transfer of ownership, but the closing includes repayment of the old lender.
Departments of the Treasury & Housing and Urban Development, Making Home Affordable Program - Cite This Source - This Definition- Browse Related Terms: Closing, Deed-in-Lieu of Foreclosure, fee, Foreclosure Prevention, HAFA Short Sale, Pre-foreclosure, Servicing transfer, Short Sale
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Fees paid when you close (or settle) on a loan. These fees may include application fees; title examination, abstract of title, title insurance, and property survey fees; fees for preparing deeds, mortgages, and settlement documents; attorneys' fees; recording fees; estimated costs of taxes and insurance; and notary, appraisal, and credit report fees. Under the Real Estate Settlement Procedures Act (RESPA), the borrower receives a "good faith estimate" of closing costs within three days of application. The good faith estimate lists each expected cost as an amount or a range.
- Browse Related Terms: Appraisal, Appraiser, Closing (or settlement) costs, equity, Financial Models, Good faith estimate, Loan to Value (LTV) Ratio
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Ethnicity of the co-applicant. This is reported for originated loans and for loan applications that do not result in an origination. Institutions may, but are not required to, report co-applicant ethnicity for purchased loans. When the co-applicant is not a natural person (a business, corporation or partnership, for example) or when the co-applicant information is unavailable because the loan has been purchased by your institution, the numerical code for "not applicable" is reported. If there is no co-applicant, the numerical code for "no co-applicant" is reported.
- Browse Related Terms: Action Taken Date, Action Taken Type, Applicant Ethnicity, Applicant Race, Applicant Sex, Application Received Date, Co-applicant Ethnicity, Co-applicant Race, Co-applicant Sex, Good Faith Estimate (GFE), Gross Annual Income, Lien Status, Loan Application Number, Loan Application Register (LAR), Panel - HMDA Reporter Panel Listing, Reasons for Denial, Respondent Name, Transmittal Sheet (TS), Type of Purchaser
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Race of the co-applicant. This is reported for originated loans and for loan applications that do not result in an origination. Institutions may, but are not required to, report co-applicant race for purchased loans. When the co-applicant is not a natural person (a business, corporation or partnership, for example) or when the co-applicant information is unavailable because the loan has been purchased by your institution, the numerical code for "not applicable" is reported. If there is no co-applicant, the numerical code for "no co-applicant" is reported.
- Browse Related Terms: Action Taken Date, Action Taken Type, Applicant Ethnicity, Applicant Race, Applicant Sex, Application Received Date, Co-applicant Ethnicity, Co-applicant Race, Co-applicant Sex, Good Faith Estimate (GFE), Gross Annual Income, Lien Status, Loan Application Number, Loan Application Register (LAR), Panel - HMDA Reporter Panel Listing, Reasons for Denial, Respondent Name, Transmittal Sheet (TS), Type of Purchaser
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Sex of the co-applicant. This is reported for originated loans and for loan applications that do not result in an origination. Institutions may, but are not required to, report co-applicant sex for purchased loans. When the co-applicant is not a natural person (a business, corporation or partnership, for example) or when the co-applicant information is unavailable because the loan has been purchased by your institution, the numerical code for "not applicable" is reported. If there is no co-applicant, the numerical code for "no co-applicant" is reported.
- Browse Related Terms: Action Taken Date, Action Taken Type, Applicant Ethnicity, Applicant Race, Applicant Sex, Application Received Date, Co-applicant Ethnicity, Co-applicant Race, Co-applicant Sex, Good Faith Estimate (GFE), Gross Annual Income, Lien Status, Loan Application Number, Loan Application Register (LAR), Panel - HMDA Reporter Panel Listing, Reasons for Denial, Respondent Name, Transmittal Sheet (TS), Type of Purchaser
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one or more persons who have signed a loan note, and are equally responsible for repaying the loan.
Departments of the Treasury & Housing and Urban Development, Making Home Affordable Program - Cite This Source - This Definition- Browse Related Terms: agent, Beneficiary, Co-Homeowners, Deed, Default, Grantor, Negative Equity, Real property, Title, trust, trust deed, Trustee
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Assets used as security for a loan that can be seized by the lender if the borrower fails to repay the loan.
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the efforts a lender takes to collect past due payments.
Departments of the Treasury & Housing and Urban Development, Making Home Affordable Program - Cite This Source - This Definition- Browse Related Terms: "Bait-and-switch" schemes, Alt-A Mortgages, Balloon Payment, cash-out refinancing, Collections, Delinquency, Home improvement scams, Loan flip, Loan modification, Mortgage Modification, Prepayment penalty, Prime, Prime Mortgages, Refinance, Subprime, Subprime Mortgages
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Conservatorship is a legal procedure for the management of financial institutions for an interim period during which the institution’s conservator assumes responsibility for operating the institution and conserving its assets. Under the Housing and Economic Recovery Act of 2008, the Federal Housing Finance Agency (“FHFA”) placed Fannie Mae and Freddie Mac (collectively the “Enterprises”) into conservatorships. The statutory role of FHFA as conservator requires FHFA to take actions to preserve and conserve the assets of the Enterprises and restore them to safety and soundness. FHFA assumed the powers of the board of directors, officers, and shareholders; however, the day-to-day operations of the company are still with the Enterprises’ existing management.
- Browse Related Terms: American Recovery and Reinvestment Act of 2009, Conservatorship, Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), Emergency Economic Stabilization Act (EESA), Garn-St. Germain Depository Institutions Act, Housing and Economic Recovery Act (HERA), Inspector General Act, Inspector General Reform Act, Interest Rate Risk
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Conventional mortgage loans are those mortgages that are not insured or guaranteed by the Federal Housing Administration, the U.S. Department of Veterans Affairs, or the U.S. Department of Agriculture and meet the Enterprises’ underwriting standards. Conforming mortgage loans have original balances below a specific threshold, set by law and published by FHFA, known as the “conforming loan limit.” For 2011, the conforming loan limit is $417,000 for most areas of the contiguous United Sates, although higher limits apply in specific areas.
- Browse Related Terms: Conventional Conforming Mortgage Loans, Emergency Home Finance Act of 1970, Federal Housing Enterprises Financial Safety and Soundness Act of 1992, Federal National Mortgage Association Charter Act of 1954 (Charter Act), Government National Mortgage Association (Ginnie Mae), Government-Sponsored Enterprise (GSE), Housing and Urban Development Act, Implied Guarantee, Loan Type, Private-Label Mortgage-Backed Securities (Private-label MBS), Private-Label Mortgages, Senior Preferred Stock Purchase Agreement (PSPA)
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is an Adjustable Rate Mortgage loan that can be converted into a fixed-rate mortgage during a certain time period.
Departments of the Treasury & Housing and Urban Development, Making Home Affordable Program - Cite This Source - This Definition- Browse Related Terms: Adjustable-Rate Mortgage (ARM), amortization, balloon mortgage, Convertible ARM, Debarment, Fixed-Rate Mortgage (FRM), Interest-only mortgage, Lock-In, Lock-in agreement, Mortgage life insurance, Negative amortization, Payment Cap, Right of rescission, Self-Amortizing Loans, Swap, term, Weighted Average Life (WAL)
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A three-digit FIPS (Federal Information Processing Standards) code that identifies the county where the property is located.
- Browse Related Terms: Activity Year, Census Tract, County Code, Geocode, Metropolitan Division (MD), Metropolitan Statistical Area (MSA), Metropolitan Statistical Area (MSA) / Metropolitan Division (MD), Quality Edits, State Code, Syntactical Edits, Validity Edits
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A person or entity that is owed money by another person or entity.
Departments of the Treasury & Housing and Urban Development, Making Home Affordable Program - Cite This Source - This Definition- Browse Related Terms: Collateral, creditor, Equity stripping, Home Equity Line of Credit (HELOC), Home Ownership and Equity Protection Act (HOEPA), interest, Interest rate, Loan modification activities, Principal, Rate Spread, Servicemen’s Readjustment Act, Truth-In-Lending Act (TILA)
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