| To navigate through our glossary, click on the first letter of the word you're looking for: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z |
| C |
| Callable Debt |
| A debt security in where the issuer has the right to redeem the security at a specified price on or after a specified date, but prior to its stated final maturity date. |
| Caps |
| A set percentage amount by which an adjustable rate mortgage may adjust each adjustment period. For adjustable loans, caps are usually quoted as two numbers as in 2/6. The first number indicates how much a loan may adjust at each adjustment period while the second number indicates how much a loan may adjust over its lifetime. |
| Carry back Loan |
| A loan in which a seller agrees to finance a buyer in order to complete a property sale. |
| Certificate of Eligibility |
| A veteran's evidence of entitlement for a VA-guaranteed loan. |
| Certificate of Reasonable Value (CRV) |
| An appraisal that has been performed on a property that is being paid for a VA loan. After the property has been appraised, the Veterans Administration issues a CRV. |
| Clear Title |
| A title that is free of liens or any legal question as to the ownership of the property. |
| Closing |
| Final arrangements to transfer title of property as well as allocate charges and credits. |
| Closing Costs |
| Closing costs are fees paid by the borrower when a property is purchased or refinanced. Costs incurred include a loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, deed recording fee, and credit report charges. All closing costs are separated into "non-recurring," and "pre-paid." Non-recurring charges are any items that are paid only once because a loan was obtained or a property bought, such as a loan origination fee. Pre-paid charges are those that recur over time, like insurance and property taxes. These are summarized in the Good Faith Estimate. |
| Cloud |
| An outstanding claim or encumbrance, that, if valid, would affect or impair the owner's property title. |
| Collateral |
| Property, real or personal, pledged as a security to back up a promise. In a home loan, the property is considered collateral that can be revoked if loan is not repaid according to the terms of the mortgage or deed of trust. |
| Commitment |
| A written letter of agreement detailing the terms and conditions by which the lender will lend and the borrower will borrow funds to finance a home. |
| Conforming Loan |
| A mortgage loan for up to $417,000 in the continental United States (Alaska and Hawaii limits are higher). |
| Construction Loan |
| A short term loan for funding the cost of construction. The lender advances funds to the builder as the work progresses. |
| Conventional Mortgage |
| A mortgage loan that is obtained without any additional guarantees for repayment, such as FHA insurance, VA guarantees, or private insurance. This is usually given at an 80% loan-to-value ratio. |
| Conversion |
| The right of a borrower to convert an adjustable or balloon loan into a fixed loan. |
| Credit Loan |
| A credit loan is a mortgage that is issued on only the financial strength of a borrower, without great regard for collateral. |
| Credit Rating |
| Borrowers are rated by lenders according to the borrower's credit-worthiness or risk profile. Credit ratings are expressed as letter grades such as A-, B, or C+. These ratings are based on various factors such as a borrower's payment history, foreclosures, bankruptcies and charge-offs. There is no exact science to rating a borrower's credit, and different lenders may assign different grades to the same borrower. |
| Credit Report |
| A report to a prospective lender on the credit standing of a prospective borrower. Used to help determine creditworthiness. Information regarding late payments, defaults, or bankruptcies will appear here. |
| Credit-Loss Ratio |
| The ratio of credit-related losses to the dollar amount of MBS outstanding and total mortgages owned by the corporation. |
| Credit-Related Expenses |
| The sum of foreclosed property expenses plus the provision for losses. |
| Credit-Related Losses |
| The sum of foreclosed property expenses plus charge-offs. |
