What is the Federal Housing Finance Agency? The Federal Housing Finance Agency is created under the Housing and Economic Recovery Act (HERA, 2018). It is an independent agency saddled with the responsibility to oversee Fannie Mae and Freddie Mac bank, the Federal Home Loan (FHL), and also to ensure the U.S housing finance system is stable. Back to:B...

What is a Closed-End Mortgage? A closed-end mortgage is a mortgage agreement that does not permit a borrower to take an additional amount without repaying the current mortgage and taking permission from the mortgage lender. A closed-end mortgage is otherwise called a "closed mortgage", this type of mortgage restricts a mortgagor from refinancing, re...

What is the Nationally Recognized Statistical Ratings Organization? Credit rating agencies asses the creditworthiness of a firm or financial instrument. The credit rating agencies that are registered with the Securities and Exchange Commission of the United States and whose ratings are authorized to be used for certain regulatory purposes are called...

What is a Conversion Option in a Mortgage? Conversion option refers to a clause that has to do with adjustable-rate mortgages (ARM) that enable an individual to change the adjustable-rate mortgage to fixed rates at a certain future date. Mortgage loans that have conversion options come at a cost, as its rates are typically higher than those without ...

How are Business Customers different from Consumers? Business customers or business to business (B2B) customers are more focused on the bottom line. In other words, they are concerned with how our product or the price they pay for it affects their purchase. Ultimate profitability of the investment is going to be much more of a concern for them than ...

What is R-Squared? R-squared, also referred to as the coefficient of determination, is a measure of statistics that gives relationships estimate between dependent variables movements based on the movement of the independent variable. In finance, it is a measure of statistics between the performance of an investment and an identified benchmark index....

What is Full Recourse Debt? Full recourse debt is a secured debt but offers more protection to a lender unlike other types of secured debts. In full recourse debt, a & lender has the right to seize assets outside the collateral that are owned by the borrower for the repayment of the debt owed. In this type of debt, a lender has the assurance of ...

What is the Interbank Rate? Banks or financial institutions borrow money from other banks to finance certain operations and ensure high liquidity to meet their needs. Such loans are short-termed, usually overnight loan or a loan repayable within a week. Banks that have excess money in their reserve can also lend money to other banks. Such lending tr...

What is a Construction Bond? Construction bonds also known as "construction surety bonds" or "contract bond's are a deal that construction project creditors sign ensuring insurance in case of unfortunate events occurrence which can lead to disruptions, inability to complete the project, failure to meet project requirements, inability to pay their de...

What is an Issuer Identification Number? The issuer identification number (IIN) is a six-digit code used to identify a credit card issuing institution in international exchange. The IIN is unique to each issuer as no two credit card issuing institutions can have the same IIN. The IIN is the first six to eight digits you will find on a credit card or...