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
R
- Rate
lock
A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a
specified interest rate and lender costs for a specified period of time. See Lock-in.
- Realtor
Real estate broker or agent belonging to the National Association of Realtors.
- Real
estate agent
A person licensed to negotiate and transact the sale of real estate on behalf of the
property owner.
- Real
estate broker
A middle man or agent who buys and sells real estate for a company, firm, or individual on
a commission basis.
The broker does not have title to the property, but generally represents the owner.
- Real Estate Mortgage Investment
Conduit (REMIC)
A security that represents a beneficial interest in a trust having multiple classes of
securities. The securities of each class entitle investors to cash flows structured
differently from the payments on the underlying mortgages.
- Real Estate Settlement Procedures Act
(RESPA)
A consumer protection law that requires lenders to give borrowers advance notice of
closing costs.
- Recision
Law that gives the borrower 3 days after signing to cancel a contract in some cases, if
the transaction uses home equity as security.
- Recording
fees
Paid to the county for recording a home sale, thereby making it part of the public
records.
- Refinance
Obtaining a new mortgage loan on a property already owned. Often to replace existing loans on the property.
- Refinancing
The process of the same mortgagor paying off one loan with the proceeds from another loan.
- Renegotiable
Rate Mortgage (RRM)
A loan in which the interest rate is adjusted periodically. See Adjustable Rate Mortgage.
- Repayment
plan
An agreement between a lender and a borrower who is delinquent on his or her mortgage
payments, in which the borrower agrees to make additional payments to pay down past due
amounts while still making regularly scheduled payments.
- RESPA
See Real Estate Settlement Procedures
Act. - Restrictive Covenants
Private restrictions limiting the use of real property. Restrictive covenants are created
by deed and may "run with the land," binding all subsequent purchasers of the
land, or may be "personal" and binding only between the original seller and
buyer. The determination whether a covenant runs with the land or is personal is governed
by the language of the covenant, the intent of the parties, and the law in the State where
the land is situated. Restrictive covenants that run with the land are encumbrances and
may affect the value and marketability of title. Restrictive covenants may limit the
density of buildings per acre, regulate size, style or price range of buildings to be
erected, or prevent particular businesses from operating or minority groups from owning or
occupying homes in a given area. (This latter discriminatory covenant is unconstitutional
and has been declared unenforceable by the U.S. Supreme Court.)
- Return on average common equity
Net income available to common stockholders, as a percentage of average common
stockholders' equity.
- Reverse
Annuity Mortgage (RAM)
A Mortgage in which the lender makes periodic payments to the borrower using the
borrower's equity in the home as security.
- Reverse
mortgage
A financial tool which provides seniors with funds from the equity in their homes.
Generally, no payments are made on a reverse mortgage until the borrower moves or the
property is sold. The final repayment obligation is designed to not exceed the proceeds
from the sale of the home.
- Revolving
liability
A credit arrangement, such as a credit card, that allows a customer to borrow against a
preapproved line of credit when purchasing goods and services.
- Risk-based
capital
The amount of capital necessary to absorb losses throughout a hypothetical ten-year period
marked by severely adverse circumstances.
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
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