A financial institution that accepts deposits, offers checking and savings account services, and loans to individuals and businesses. Banks also provide various financial services like wealth management, currency exchange, and safe deposit boxes.
Building and Loan Associations, also known as Savings and Loan Associations, are financial institutions that specialize in offering savings accounts and originating residential mortgage loans.
A federal law that mandates financial institutions to meet the credit needs of the communities they serve, particularly focusing on low- and moderate-income neighborhoods.
A credit limit represents the maximum amount a financial institution extends as a loan or line of credit to an individual or business based on their creditworthiness and financial background.
A deposit account is an arrangement whereby an individual or organization places cash with a financial institution for safekeeping. The institution can invest the cash and pay the depositor a specified interest while allowing the depositor to reclaim the full value of the account following agreed-upon procedures.
The Dodd-Frank Wall Street Reform and Consumer Protection Act is a sweeping legislative overhaul signed into law in 2010 to address the financial crisis of 2007-2010. It aims to improve financial stability and protect consumers by regulating financial institutions more rigorously.
A federally related transaction refers to a real estate transaction that is governed and regulated by federal agencies such as the Federal Reserve Board, FDIC, OCC, OTS, NCUA, Fannie Mae, Freddie Mac, FHA, and the Department of Veterans Affairs. For the transaction to be valid, it necessitates real estate appraisal conducted by state-licensed or certified appraisers.
A lender is a party that originates or holds loans. They can include entities such as commercial banks, thrifts, credit unions, mortgage bankers, and mortgage brokers.
A Loan Correspondent, also known as a Mortgage Correspondent, serves as an intermediary between borrowers and lenders, primarily offering mortgage products from various financial institutions to clients.
MERS is a corporation created by financial institutions to serve as a private alternative to public registration systems for mortgages, aimed at reducing recording fees and providing efficient management of loan information.
An underwriter inspects and evaluates the level of risk associated with insuring loans, securities, and other types of investments, making decisions that can significantly influence lending practices, policy formulation, investment strategies, and risk management.
The practice of packaging numerous mortgage loans for sale in the secondary mortgage market by a financial institution or mortgage banker who originated the loans.
Wrongful foreclosure occurs when a lender improperly or illegally forecloses on a borrower’s property. This type of foreclosure typically arises due to failure to follow correct legal procedures or agreements made between the lender and the borrower.
