ORE, or OREO, specifically refers to real estate assets that lending institutions hold due to foreclosures. These are properties not used for bank operations but retained as a consequence of loan defaults.
The Risk-Based Capital Requirement is a regulatory standard that determines the minimum amount of capital that federally chartered lending institutions must hold, based on the risk profile of their employed assets. The requirement ensures that institutions maintain sufficient capital to manage potential losses and maintain financial stability.
Third-Party Mortgage Origination involves the process of using an intermediary, generally a mortgage broker, between the borrower and the lending institution. The intermediary performs all tasks and duties required to originate the loan according to the requirements of the lending institution.
