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Mortgage Underwriting In The United States
Mortgage underwriting is the process a lender uses to determine if the risk of offering a mortgage loan to a particular borrower under certain parameters is acceptable. Most of the risks and terms that underwriters consider fall under the three C's of underwriting: credit, capacity and collateral. To help the underwriter assess the quality of the loan, banks and lenders create guidelines and even computer models that analyze the various aspects of the mortgage and provide recommendations regarding the risks involved. Because large securitizers such as the GSEs and other banks are large purchasers of loans from originators, and because many originators lack the balance sheets to hold onto loans for extended periods, automated underwriting guidelines are a crucial determinant of whether a mortgage will be made and at what price. In the U.S. the mortgage underwriting processing is done by a software called Automated Underwriting System (AUS). There are 2 AUS systems, and algorithms d ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mortgage Underwriting
Mortgage underwriting is the process a lender uses to determine if the risk (especially the risk that the borrower will default ) of offering a mortgage loan to a particular borrower is acceptable and is a part of the larger mortgage origination process. Most of the risks and terms that underwriters consider fall under the five C’s of underwriting: credit, capacity, cashflow, collateral, and character. (This is also known in the UK as the three canons of credit - capacity, collateral, and character.) To help the underwriter assess the quality of the loan, banks and lenders create guidelines and even computer models that analyze the various aspects of the mortgage and provide recommendations regarding the risks involved. However, it is always up to the underwriter to make the final decision on whether to approve or decline a loan. Risks for the lender Risks for the lender are of three forms: interest rate risk, default risk, and prepayment risk. There is a risk to the lende ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Credit Cards
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the other agreed charges). The card issuer (usually a bank or credit union) creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance. There are two credit card groups: consumer credit cards and business credit cards. Most cards are plastic, but some are metal cards (stainless steel, gold, palladium, titanium), and a few gemstone-encrusted metal cards. A regular credit card is different from a charge card, which requires the balance to be repaid in full each month or at the end of each statement cycle. In contrast, credit cards allow the consumers to build a continuing balance of debt, subject to interest being charged. A credit card diffe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Charge Offs
Charge or charged may refer to: Arts, entertainment, and media Films * '' Charge, Zero Emissions/Maximum Speed'', a 2011 documentary Music * ''Charge'' (David Ford album) * ''Charge'' (Machel Montano album) * ''Charge!!'', an album by The Aquabats * ''Charged'' (Nebula album) * ''Charged'' (Toshinori Kondo, Eraldo Bernocchi and Bill Laswell album) Television * ''Charge'' (TV series) * Charge! (TV network) * "Charged" (''Reaper''), episode 2 of season one of ''Reaper'' Companies * Charge Automotive Limited, an electric-vehicle manufacturer * Charged Productions, an animation studio * Charged Records, a record label Finance * Equitable charge, confers a right on the secured party to look to a particular asset in the event of the debtor's default * Floating charge, a security interest over the assets of a company Law * Criminal charge, a formal accusation made before a court by a prosecuting authority * Legal charge, information or indictment through a formal legal proc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Derogatory Credit
A pejorative or slur is a word or grammatical form expressing a negative or a disrespectful connotation, a low opinion, or a lack of respect toward someone or something. It is also used to express criticism, hostility, or disregard. Sometimes, a term is regarded as pejorative in some social or ethnic groups but not in others, or may be originally pejorative but later adopt a non-pejorative sense (or vice versa) in some or all contexts. Etymology The word ''pejorative'' is derived from a Late Latin past participle stem of ''peiorare'', meaning "to make worse", from ''peior'' "worse". Pejoration and melioration In historical linguistics, the process of an inoffensive word becoming pejorative is a form of semantic drift known as pejoration. An example of pejoration is the shift in meaning of the word ''silly'' from meaning that a person was happy and fortunate to meaning that they are foolish and unsophisticated. The process of pejoration can repeat itself around a single concep ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Deposit Accounts
A deposit account is a bank account maintained by a financial institution in which a customer can deposit and withdraw money. Deposit accounts can be savings accounts, current accounts or any of several other types of accounts explained below. Transactions on deposit accounts are recorded in a bank's books, and the resulting balance is recorded as a liability of the bank and represents an amount owed by the bank to the customer. In other words, the banker-customer (depositor) relationship is one of debtor-creditor. Some banks charge fees for transactions on a customer's account. Additionally, some banks pay customers interest on their account balances. Types of accounts * How banking works In banking, the verbs "deposit" and "withdraw" mean a customer paying money into, and taking money out of, an account, respectively. From a legal and financial accounting standpoint, the noun "deposit" is used by the banking industry in financial statements to describe the liability owe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Revolving Credit
Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to installment credit. Credit cards are an example of revolving credit used by consumers. Corporate revolving credit facilities are typically used to provide liquidity for a company's day-to-day operations. They were first introduced by the Strawbridge and Clothier Department Store. It is an arrangement which allows for the loan amount to be withdrawn, repaid, and redrawn again in any manner and any number of times, until the arrangement expires. Credit card loans and overdrafts are revolving loans, also called evergreen loan. Typical characteristics * The borrower may use or withdraw funds up to a pre-approved credit limit. * The amount of available credit decreases and increases as funds are borrowed and then repaid. * The credit may be used repeatedly. * The borrower makes payments based only on the amount he or she has actually used or withdrawn, plus interest. * The borrower may ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mathematical Model
A mathematical model is a description of a system using mathematical concepts and language. The process of developing a mathematical model is termed mathematical modeling. Mathematical models are used in the natural sciences (such as physics, biology, earth science, chemistry) and engineering disciplines (such as computer science, electrical engineering), as well as in non-physical systems such as the social sciences (such as economics, psychology, sociology, political science). The use of mathematical models to solve problems in business or military operations is a large part of the field of operations research. Mathematical models are also used in music, linguistics, and philosophy (for example, intensively in analytic philosophy). A model may help to explain a system and to study the effects of different components, and to make predictions about behavior. Elements of a mathematical model Mathematical models can take many forms, including dynamical systems, statisti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Credit Score
A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of an individual. A credit score is primarily based on a credit report, information typically sourced from credit bureaus. Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. Lenders also use credit scores to determine which customers are likely to bring in the most revenue. Credit scoring is not limited to banks. Other organizations, such as mobile phone companies, insurance companies, landlords, and government departments employ the same techniques. Digital finance companies such as online lenders also use alternative data sources to calculate the creditworthiness of borrowers. By country Australia In Australia, cre ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bankruptcies
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Bankrupt is not the only legal status that an insolvent person may have, and the term ''bankruptcy'' is therefore not a synonym for insolvency. Etymology The word ''bankruptcy'' is derived from Italian language, Italian ''banca rotta'', literally meaning "broken bank". The term is often described as having originated in renaissance Italy, where there allegedly existed the tradition of smashing a banker's bench if he defaulted on payment so that the public could see that the banker, the owner of the bench, was no longer in a condition to continue his business, although some dismiss this as a false etymology. History In Ancient Greece, bankruptcy did not exist. If a man owed and he could not pay, he and his wife, children or servants ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Judgments
Judgement (or US spelling judgment) is also known as ''adjudication'', which means the evaluation of evidence to make a decision. Judgement is also the ability to make considered decisions. The term has at least five distinct uses. Aristotle suggested we think of the ''opposite'' of different uses of a term, if one exists, to help determine if the uses are really different. Some opposites will be included here to help demonstrate that their uses are really distinct: * Informal – opinions expressed as facts. * Informal and psychological – used in reference to the quality of cognitive faculties and adjudicational capabilities of particular individuals, typically called ''wisdom'' or ''discernment''. The opposites are ''foolishness'' or ''indiscretion''. * Formal - the mental act of affirming or denying one thing of another through comparison. Judgements are communicated to others using agreed-upon ''terms'' in the form of words or algebraic symbols as meanings to form ''p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tax Liens
A tax lien is a lien which is imposed upon a property by law in order to secure the payment of taxes. A tax lien may be imposed for the purpose of collecting delinquent taxes which are owed on real property or personal property, or it may be imposed as a result of a failure to pay income taxes or it may be imposed as a result of a failure to pay other taxes. Federal tax lien in the United States In the United States, a federal tax lien may arise in relation to any kind of federal tax, including but not limited to income tax, gift tax, or estate tax. Federal tax lien basics Internal Revenue Code section 6321 provides: ::Sec. 6321. LIEN FOR TAXES. ::If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the United States upon all property and rights to property, w ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Foreclosures
Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan. Formally, a mortgage lender (mortgagee), or other lienholder, obtains a termination of a mortgage borrower (mortgagor)'s equitable right of redemption, either by court order or by operation of law (after following a specific statutory procedure). Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, it is a cloud on title and the lender cannot be sure that they can repossess the property. Therefore, through the process of foreclosure, the lender seeks to immediately ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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