Tag: borrower

DefinitionA participation mortgage or participating mortgage is a mortgage loan, or sometimes a group of them, in which two or more persons have fractional...

What is Private Mortgage Insurance Private mortgage insurance is insurance that protects a lender in the event that a borrower defaults on a conventional home...

What is a Qualified Mortgage Insurance Premium A qualified mortgage insurance premium (MIP) is a type of mortgage insurance that homebuyers are required to purchase...

What is 'Fallout Risk' The lending risk that occurs when the terms of a loan are confirmed simultaneously with the terms of...

What is 'Qualifying Ratios' A set of ratios that are used by lenders to approve borrowers for a mortgage. The borrower's front-end...

What is 'Take-Out Commitment' A specific type of mortgage purchase agreement. Under a take-out commitment, a long-term investor agrees to buy a...

What is 'Take-Out Lender' A type of financial institution that provides a long-term mortgage on property. This mortgage will replace interim financing,...

What is a 'Take-Out Loan' A type of long-term financing (usually) on a piece of real property. Long-term take-out loans replace interim...

DefinitionIn finance, unsecured debt refers to any type of debt or general obligation that is not protected by a guarantor, or collateralized by a...

What is an unconsolidated subsidiary An unconsolidated subsidiary is a subsidiary in which the parent company does not include the subsidiary's financials in its consolidated...