Terminology Flashcards
0
Q
FRE
A
Freddie Mac’s stock symbol
1
Q
VLI
A
Very Low Income-> 50% of AMI
2013 goal is 50,000 units
2
Q
PVA
A
Present Value Added
3
Q
Buy-Up
A
A.K.A. “Negative Points”
- points paid by a lender to a borrower or mortgage broker for a loan with an above-market interest rate. Points are known as a rebate, must be used to defray loan settlement costs.
- receive rebate in exchange for higher interest rate
- –reduction in loan settlement costs can offset higher rates on short term horizon
4
Q
Financial Covenants
A
Hhhhhh
6
Q
Conduit Loan
A
Securitized loan by a real estate mortgage investment conduit (REMIC)
-tax law creation
–allows trust to be a pass-through vehicle not subject to taxation
Loans designed to become bonds
7
Q
Defeasance
A
Method of loan prepayment where the borrower buys treasuries that replicate lender’s income stream from loan.
8
Q
NRI
A
Net Rental Income
9
Q
Double Nickle
A
Hhhhhh
10
Q
Transfer Rider
A
Hhhhhh
11
Q
Buy-Sell Rider
A
Hhhhhh
12
Q
Financial Reporting Rider
A
Hhhhh
13
Q
Acuity Mix Conversion Rider
A
Hhhhh
14
Q
Rider
A
Hhhhh
15
Q
Firm & Funded
A
In-House+ERL+Committed+Funded
–can put under app as well
