Real Estate Settlement Procedures Act (RESPA):
Federal law that, among other things, requires lenders to provide "good faith" estimates of settlement costs and make other disclosures regarding the mortgage loan. RESPA also limits the amount of funds held in escrow for real estate taxes and insurance.
The process of analyzing two related records and, if differences exist between them, finding the cause and bringing the two records into agreement. Example: Comparing an up-to-date check book with a monthly statement from the financial institution holding the account.
The alleged practice of certain lending institutions of not making mortgage, home improvement, and small business loans in certain neighborhoods-usually areas that are deteriorating or considered by the lender to be poor investments.
A way of obtaining a better interest rate, lower monthly payments, or borrow cash on the equity in a property that has built up on a loan. A second loan is taken out to pay off the first, higher-rate loan.
An amount paid back because of an overpayment or because of the return of an item previously sold.
Regular Program Community:
A community wherein a Flood Insurance Rate Map is in effect and full limits of coverage are available under the Flood Disaster Protection Act (FDPA).
Release of Lien:
To free a piece of collateral from a mortgage or lien.
Federal law defines “remittance transfers” to include certain electronic money transfers from consumers in the United States to recipients abroad, including friends, family members, or businesses. Remittance transfers are commonly known as “international wires,” “international money transfers,” or “remittances.”
A form of extending an unpaid loan in which the borrower's remaining unpaid loan balance is carried over (renewed) into a new loan at the beginning of the next financing period.
Interest that continues to accrue on your credit card balance from the statement cycle date until the financial institution receives your payment. For example, if your statement cycle date was January 10 and the bank received your payment on January 20, there were ten days for which interest accrued. This amount will be posted on your next statement.
An account that helps you plan for your retirement. It is also the best way to save for tomorrow. Retirement accounts include defined contribution plans (e.g. IRA, 401k, or profit sharing plans) and defined benefit plans (e.g. pension or cash balance plans).
A negotiable instrument, principally a check that has been sent to a financial institution for collection and payment and is returned unpaid by the sending financial institution.
A special home loan product that allows a homeowner aged 62 or older the ability to access the equity that has accumulated in their home. The home itself will be the source of repayment. The loan is underwritten based on the value of the collateral (home) and the life expectancy of the borrower. The loan must be repaid when you die, sell your home, or no longer live there as your principal residence. (Also called home equity conversion mortgages or reverse-annuity mortgages).
A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or open-end credit.)
Right of Offset:
Financial institution's legal right to seize funds a guarantor or debtor may have on deposit to cover a loan in default. It is also known as the right of set-off.
Right of Rescission:
Right to cancel, within three business days, a contract that uses the home of a person as collateral, except in the case of a first mortgage loan. There is no fee to the borrower, who receives a full refund of all fees paid. The right of rescission is guaranteed by the Truth in Lending Act (TILA).