query: the most basic protection for a lender of funds secured with a residential property is the

pos: Mortgage loan Mortgage loan A mortgage loan, or simply mortgage (), is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property ("foreclosure" or "repossession") to pay off the loan in the event the borrower defaults on the loan or

pos: Mortgage law real estate without the need to pay the full value immediately from their own resources. See mortgage loan for residential mortgage lending, and commercial mortgage for lending against commercial property. Legal systems in different countries, while having some concepts in common, employ different terminology. However, in general, a mortgage of property involves the following parties. The borrower, known as the mortgagor, gives the mortgage to the lender, known as the mortgagee. A mortgage lender is an investor that lends money secured by a mortgage on real estate. In today's world, most lenders sell the loans they write on the secondary

pos: Mortgage loan Mortgage loan A mortgage loan, or simply mortgage (), is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property ("foreclosure" or "repossession") to pay off the loan in the event the borrower defaults on the loan or

pos: Mortgage loan a sale of the secured property if the mortgage lender is repaid in full first. In many jurisdictions, it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries where the demand for home ownership is highest, strong domestic markets for mortgages have developed. Mortgages can either be funded through the banking sector (that is, through short-term deposits) or through the capital markets through a process called "securitization", which converts pools of mortgages into fungible bonds that can be sold to

pos: Loan secured loan is a loan in which the borrower pledges some asset (e.g. a car or house) as collateral. A mortgage loan is a very common type of loan, used by many individuals to purchase residential property. The lender, usually a financial institution, is given security a lien on the title to the property until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it. Similarly, a loan taken out to buy a car may be

pos: Security interest interests lower the risk for the lender, and in turn allows the lender to charge lower interest, thereby lowering the cost of capital for the borrower. For example, interest rates for a mortgage loan (for which the mortgage is secured by the real property) are considerably lower than for a credit card debt (where there may be no collateral at all, or such collateral is easily hidden or depreciates rapidly). Detractors argue that creditors with security interests can destroy companies that are in financial difficulty, but which might still recover and be profitable. The secured lenders might get nervous and

pos: Collateral (finance) be up to several percentage points, depending on the type and value of the collateral. For example, the interest rate (APR) on an unsecured loan is often much higher than on a secured loan or logbook loan, as the risk for the lender is then increased. If a borrower defaults on a loan (due to insolvency or another event), that borrower loses the property pledged as collateral, with the lender then becoming the owner of the property. In a typical mortgage loan transaction, for instance, the real estate being acquired with the help of the loan serves as collateral. If

pos: Participation mortgage or may not contain a balloon payment. For instance, John has a loan for a strip mall including six separate units. All are rented/leased and in addition to the principal and interest he pays to the lender, he is required to pay a certain percentage of the incoming funds. The lender is then participating in the income stream provided by the particular property. Participation mortgage A participation mortgage or participating mortgage is a mortgage loan, or sometimes a group of them, in which two or more persons have fractional equitable interests. In this arrangement the lender, or mortgagee, is entitled

pos: Correspondent lender the loan, keeping the loan in their name, while collecting a fee from the primary lender who now holds the note. Correspondent lenders usually underwrite their loans according to the guidelines of the larger lender, allowing for the loan to be sold quickly. Correspondent lender A correspondent lender originates, and unlike a mortgage broker, underwrites, and funds mortgage loan using their own funds. The initial loan is usually made in the name of the correspondent lender, and then after closing, the loan is either sold to a larger primary lender or on the secondary mortgage market. Many smaller credit unions

pos: Correspondent lender Correspondent lender A correspondent lender originates, and unlike a mortgage broker, underwrites, and funds mortgage loan using their own funds. The initial loan is usually made in the name of the correspondent lender, and then after closing, the loan is either sold to a larger primary lender or on the secondary mortgage market. Many smaller credit unions make home loans as correspondents, selling the loan once the mortgage is complete. Some banks act like as correspondents, making mortgages in their own name, but later selling those notes to a larger institution. Correspondent lenders may, in some cases, continue to service

neg: Foreclosure for overdue taxes, unpaid contractors' bills or overdue homeowner association dues or assessments. The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of real property after the owner has failed to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its

neg: Nonrecourse debt loan. The incentives for the parties are at an intermediate position between those of a full recourse secured loan and a totally unsecured loan. While the borrower is in first loss position, the lender also assumes significant risk, so the lender must underwrite the loan with much more care than in a full recourse loan. This typically requires that the lender have significant domain expertise and financial modeling expertise. In Europe, mortgage loans secured by personal residences are usually recourse loans. Most states in the United States also permit recourse for residential mortgages, but antideficiency statutes in a minority of

neg: Traditional investments vehicles like certificates of deposit, money market funds, and high yield bank accounts. In real estate, money is used to purchase property for the purpose of holding, reselling or leasing for income and there is an element of capital risk. Investment in residential real estate is the most common form of real estate investment measured by number of participants because it includes property purchased as a primary residence. In many cases the buyer does not have the full purchase price for a property and must borrow additional money from a bank, finance company or private lender. Commercial real estate consists

neg: Floor loan claimed by lender are fulfilled. The additional funds between floor and ceiling needed for construction costs are called "gap". Floor loan A floor loan refers to the minimum amount of money that a lender is willing to lend in order to enable the builder to begin the construction of a building that is to be occupied by tenants. The term is thus closely associated with mortgage and property loans. The rest of the loan's balance (called "holdback") is given to the builder upon the achievement of certain milestones related to the sale or lease of its residential space. For example,

neg: Secured loan the lender; however, credit risk (e.g. credit history, and ability to repay) and expected returns for the lender are also factors affecting rates. The term "secured loan" is used in the United Kingdom, but the United States more commonly uses "secured debt". There are two purposes for a loan secured by debt. In the first purpose, by extending the loan through securing the debt, the creditor is relieved of most of the financial risks involved because it allows the creditor to take ownership of the property in the event that the debt is not properly repaid. In exchange, this permits

neg: Real Estate Settlement Procedures Act transferred from the Department of Housing and Urban Development to the Consumer Financial Protection Bureau (CFPB). RESPA outlines requirements that lenders must follow when providing mortgages that are secured by federally related mortgage loans. This includes home purchase loans, refinancing, lender approved assumptions, property improvement loans, equity lines of credit, and reverse mortgages. Under RESPA, lending institutions must: For closed-end reverse mortgages, a lender or broker is required to provide the consumer with the standard Good Faith Estimate (GFE) form. A Good Faith Estimate of settlement costs is a three-page document that shows estimates for the costs that the borrower

neg: Private money investing or Private Real Estate Bankers. The motivation for investing includes: the simplicity of the underlying investment and a desire for: 1) An investment secured by real estate 2) Regular income derived from monthly dividend distributions; 3) Higher yields than those available from investing in money market funds or bonds; 4) An Active involvement in real estate finance. A borrower seeking funds approaches a mortgage broker or private money lender and describes his borrowing needs. These include: 1) The amount of money sought; 2) The value of the property that is being pledged as security, or collateral; 3) A description of

neg: Nonrecourse debt is included in basis, "Crane v. Commissioner", subsequent borrowing is not. "Woodsam Associates, Inc. v. Commissioner". Subsequent borrowing proceeds reinvested in a depreciable property thereby avoid "Woodsam" and take advantage of "Crane". Nonrecourse debt Nonrecourse debt or a nonrecourse loan (sometimes hyphenated as non-recourse) is a secured loan (debt) that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable. If the borrower defaults, the lender can seize and sell the collateral, but if the collateral sells for less than the debt, the lender cannot seek that deficiency balance from the

neg: Gap financing permanent lender pursuant to its commitment. These gap funds are normally evidenced by a promissory note secured by a junior mortgage subject and subordinate in all respects to the permanent loan documentation. The gap documents usually state unequivocally that, in the event the rent-roll requirement is not met during the rent-roll period, the permanent lender still retains the right on demand to purchase the gap note and discharge of record any second mortgage held by the construction lender. The borrower normally assigns to the construction lender all funds that would otherwise be payable to the borrower in the event the

neg: Nonrecourse debt Nonrecourse debt Nonrecourse debt or a nonrecourse loan (sometimes hyphenated as non-recourse) is a secured loan (debt) that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable. If the borrower defaults, the lender can seize and sell the collateral, but if the collateral sells for less than the debt, the lender cannot seek that deficiency balance from the borrower—its recovery is limited only to the value of the collateral. Thus, nonrecourse debt is typically limited to 50% or 60% loan-to-value ratios, so that the property itself provides "overcollateralization" of the

neg: Hard money loan Hard money loan A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property. Hard money loans are typically issued by private investors or companies. Interest rates are typically higher than conventional commercial or residential property loans, starting at 7.7%, because of the higher risk and shorter duration of the loan. Most hard money loans are used for projects lasting from a few months to a few years. Hard money is similar to a bridge loan, which usually has similar criteria for lending as well as cost to the

neg: Secured transactions in the United States promissory note that is secured by a mortgage or deed of trust on real property, which is regulated by Article 9. This latter distinction is important in the context of the sale and purchase of promissory notes secured by real property. There are a variety of situations in which this distinction is important. For example, a non-depository mortgage lender may fund their operations with a warehouse line of credit, while a distressed loan workout specialist may obtain a line of credit. The first makes loans for the purchase of real property; the second will acquire nonperforming loans at a discount

neg: Leveraged lease Leveraged lease A leveraged lease or leased lender is a lease in which the lessor puts up some of the money required to purchase the asset and borrows the rest from a lender. The lender is given a senior secured interest on the asset and an assignment of the lease and lease payments. The lessee typically makes payments directly to the lender as the lease payments are assigned to the lender. The term may also refer to a lease agreement wherein the lessor, by borrowing funds from a lending institution, finances the purchase of the asset being leased. The lessor

neg: Mortgage law law. In most jurisdictions, a lender may foreclose on the mortgaged property if certain conditionsprincipally, non-payment of the mortgage loanapply. Subject to local legal requirements, the property may then be sold. Any amounts received from the sale (net of costs) are applied to the original debt. In some jurisdictions mainly in the United States, mortgage loans are non-recourse loans: if the funds recouped from sale of the mortgaged property are insufficient to cover the outstanding debt, the lender may not have recourse to the borrower after foreclosure. In other jurisdictions, the borrower remains responsible for any remaining debt, through a

neg: World Business Lenders World Business Lenders World Business Lenders, LLC is an American financial company headquartered in Jersey City, New Jersey with locations in Georgia, California, Connecticut, Florida and Texas. It is a bank service provider and a private direct lender specializing in short-term loans to small and medium-sized businesses. World Business Lenders was founded in 2011. Doug Naidus, the founder, Chairman, and CEO, is a former Deutsche Bank Managing Director and Global Head of Residential Lending and Trade. World Business Lenders originates and services short-term business loans, secured by real property, targeting U.S. Small and Medium Enterprise (“SME”) companies that agree to

neg: LendInvest LendInvest LendInvest is a non-bank mortgage lender in the UK, and is a property lending and investing platform. As an alternative Fintech lender in the property market, LendInvest provides fast finance to property professionals and small and medium-sized businesses (SMEs) around the UK. It also makes it possible for individuals, corporates and institutions to invest in secured property loans originated and underwritten by its mortgage team. LendInvest is regarded as one of the leading FinTech companies in the UK, and has been referred to as a ‘future billion dollar’ business. LendInvest was launched in 2013 when it was spun out

neg: Zombie title crisis of 2007–08. Zombie title A zombie title is a real estate title that has stayed with the owner of a residential property after the mortgage lender has begun a foreclosure process (making the owner move out to enable sale of the property) but then cancelled the foreclosure process. The lender is not required to notify the owner of the cancellation, who is therefore often unaware of the obligations associated with continued ownership, such as payment of local taxes and upkeep of the property in accordance with local bylaws. The prevalence of zombie titles greatly increased in the United States

neg: Zombie title Zombie title A zombie title is a real estate title that has stayed with the owner of a residential property after the mortgage lender has begun a foreclosure process (making the owner move out to enable sale of the property) but then cancelled the foreclosure process. The lender is not required to notify the owner of the cancellation, who is therefore often unaware of the obligations associated with continued ownership, such as payment of local taxes and upkeep of the property in accordance with local bylaws. The prevalence of zombie titles greatly increased in the United States following the financial

neg: Interbank lending market and reverse repos are transactions in which a borrower agrees to sell securities to a lender and then to repurchase the same or similar securities after a specified time, at a given price, and including interest at an agreed-upon rate. Repos are collateralized or secured loans in contrast to federal funds loans which are unsecured. The creation of credit and transfer of the created funds to another bank, creates the need for the 'net-lender' bank to borrow to cover short term withdrawal (by depositors) requirements. This results from the fact that the initially created funds have been transferred to another

neg: SelectaDNA SelectaDNA SelectaDNA is a forensic property marking system used as part of crime prevention strategies for businesses and residential properties. SelectaDNA offers a full range of property and offender marking products combining its unique DNA coding with microdot technology. SelectaDNA is a Police-approved Secured By Design product with no annual licence fees. SelectaDNA is used to ‘tag’ valuable property, infrastructure and criminals and is available in a number of formats including vehicle marking solutions (combining DNA and microdot technology), Defence Sprays to deter anti-social behaviour and moped-enabled crime, SelectaDNA Trace for metal protection and Intruder Sprays for robbery prevention and

neg: CUNA Mutual Group unions and their members, including the following: Commercial: Bond, collateral protection, management and professional liability, plastic card, business automobile, cyber solutions, mortgage insurance, property and business liability, workers compensation, and executive benefits Personal: Credit insurance, debt protection, guaranteed asset protection, mortgage payment protection, mechanical repair coverage, life insurance, accidental death and dismemberment, health insurance, and auto and home insurance Loan generation marketing, lending document management, compliance services, and lender development program Broker/dealer services, pension and 401(k) plans, mutual funds, managed accounts, variable annuities, fixed annuities, and immediate annuities. CUNA Mutual Group employs nearly 3,700 people in offices in Waverly, Iowa;

neg: Collateral protection insurance Collateral protection insurance Collateral Protection Insurance, or CPI, insures property held as collateral for loans made by lending institutions. CPI, also known as force-placed insurance and lender placed insurance, may be classified as single-interest insurance if it protects the interest of the lender, a single party, or as dual-interest insurance coverage if it protects the interest of both the lender and the borrower. Upon signing a loan agreement, the borrower typically agrees to purchase and maintain insurance (that must include comprehensive and collision coverage for automobiles, and hazard, flood, and wind coverage for homes), and list the lending institution as

neg: Secured loan lender has been granted a portion of the bundle of rights to specified property. If the sale of the collateral does not raise enough money to pay off the debt, the creditor can often obtain a deficiency judgment against the borrower for the remaining amount. The opposite of secured debt/loan is unsecured debt, which is not connected to any specific piece of property. Instead, the creditor may satisfy the debt only against the borrower, rather than the borrower's collateral and the borrower. Generally speaking, secured debt may attract lower interest rates than unsecured debt because of the added security for

neg: Mortgage origination in the United States has become complex due to the proliferation of loan products and consumer protection regulations. The mortgage origination, a subset of loan origination, is a complex and evolved process that involves many steps, which varies from lender to lender. The basic steps include The mortgage origination process in the United States is required to comply with the following regulations: Mortgage origination tools fall into three categories: Mortgage origination Mortgage origination, a specialized subset of loan origination, in consumer lending is the process by which a lender works with a borrower to complete a mortgage transaction, resulting in

neg: Personal Property Security Act (Canada) other secured parties, when the following steps are taken: PPSA security interests can have priority over real property security interests against fixtures, when the secured party registers notice against the land at the local registry or land titles office. Where attachment occurs before the affixation to the land, the interest will have priority, However, where attachment occurs after affixation, the interest is subordinate unless where the debtor otherwise consents. Other intersections can also occur with interests in land. For example, a lender that grants a mortgage over a rental property will also register a PPSA security interest against the rents

neg: Commercial lender (U.S.) with only minor restrictions. Most notable among those restrictions is that credit unions are prohibited in most cases from lending more than 80% of the value of real property. This is done to protect credit union members from excessive risk and is a common practice in the industry as a whole, although not enforced. On the other hand, credit unions are cooperatives and can therefore offer competitive advantages over other institutions in regards to rate and other terms. Most commercial lenders prefer to offer terms for shorter periods of time than residential lenders might at thirty or so years. Commercial

neg: Appraised value Appraised value An appraised value (United States) or mortgage valuation (Australia) pertains to the assessed value of real property in the opinion of a qualified appraiser or valuer. It is usually used as a pre-qualification & risk-based pricing factor related to the issuance of mortgage loans by a financial institution. When obtaining a mortgage, the funding lender relies on the standardized valuation methods of an appraiser to assess a monetary value for the specific piece of real property on which a loan will be secured (e.g. a residence). The lender will then justify the loan amount (and other risk-based pricing)

neg: Deed in lieu of foreclosure from the property owner, and accordingly, the lender will prefer to foreclose in order to clean the title. In order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the real estate being transferred. Both sides must enter into the transaction "voluntarily" and in "good faith". The settlement agreement must have total consideration that is at least equal to the fair market value of the property being conveyed. Sometimes, the lender will not proceed with a deed in lieu of foreclosure if the outstanding indebtedness of the borrower exceeds the current fair value of

neg: Payday loan seen in the UK is a "logbook loan" secured against a car's logbook, which the lender retains. These loans may be available on slightly better terms than an unsecured payday loan, since they are less risky to the lender. If the borrower defaults, then the lender can attempt to recover costs by repossessing and reselling the car. Many countries offer basic banking services through their postal systems. The United States Post Office Department offered such as service in the past. Called the United States Postal Savings System it was discontinued in 1967. In January 2014 the Office of the Inspector

neg: Security agreement Security agreement A security agreement, in the law of the United States, is a contract that governs the relationship between the parties to a kind of financial transaction known as a secured transaction. In a secured transaction, the Grantor (typically a borrower but possibly a guarantor or surety) assigns, grants and pledges to the grantee (typically the lender) a security interest in personal property which is referred to as the collateral. Examples of typical collateral are shares of stock, livestock, and vehicles. A security agreement is not used to transfer any interest in real property (land/real estate), only personal property.

neg: Construction loan ensure that the project is completed so that repayment can begin to take place. Almost all lenders are concerned that their money lent is repaid, so underwriting of construction loans usually focuses on how that might occur. In the most basic situation, that of an individual building a home for themselves, a business building a property for business use, or an investor building a property to rent out, the fundamental guideline is for the lender to imagine once the loan has been fully extended and converted into a normal mortgage and the building is occupied, whether the individual, business, or

neg: Escrow the mortgage, usually property taxes and insurance. The escrow agent has the duty to properly account for the escrow funds and ensure that usage of funds is explicitly for the purpose intended. Since a mortgage lender is not willing to take the risk that a homeowner will not pay property tax, escrow is usually required under the mortgage terms. Escrow companies are also commonly used in the transfer of high value personal and business property, like websites and businesses, and in the completion of person-to-person remote auctions (such as eBay), although the advent of new low cost online escrow services

neg: Chattel mortgage Chattel mortgage Chattel mortgage, sometimes abbreviated "CM", is the legal term for a type of loan contract used in some states with legal systems derived from English law. Under a typical chattel mortgage, the purchaser borrows funds for the purchase of movable personal property (the chattel) from the lender. The lender then secures the loan with a mortgage over the chattel. Legal ownership of the chattel is transferred to the purchaser at the time of purchase, and the mortgage is removed once the loan has been repaid. Chattel mortgages may have more particular characteristics in different jurisdictions. In Australia, chattel

neg: Negative equity prices, negative equity can occur when the value of the asset stays fixed and the loan balance increases because loan payments are less than the interest, a situation known as negative amortization. The typical assets securing such loans are real property – commercial, office or residential. When the loan is nonrecourse, the lender can only look to the security, that is, the value of the property, when the borrower fails to repay the loan. Since 2007, those most exposed to negative equity are borrowers who obtained loans of a high percentage of the property value (such as 90% or even

neg: Mortgage loan to amortize over a set period of time, typically 30 years. All types of real property can be, and usually are, secured with a mortgage and bear an interest rate that is supposed to reflect the lender's risk. Mortgage lending is the primary mechanism used in many countries to finance private ownership of residential and commercial property (see commercial mortgages). Although the terminology and precise forms will differ from country to country, the basic components tend to be similar: Many other specific characteristics are common to many markets, but the above are the essential features. Governments usually regulate many aspects

neg: IMRIS it was developing an MRI-compatible image-guided surgical robot specifically designed for minimally invasive neurosurgery. In November 2012, the company announced that it was moving its headquarters to the Minneapolis area. They completed their move in July 2013. In late May 2015, news broke that IMRIS had "filed for chapter 11 bankruptcy protection with a buyout offer of $9.5 million from secured lender Deerfield Management Co. LP." due to problems competing with larger health care businesses. Chapter 11 proceedings were finalized on August 19, 2015, with Deerfield Imaging agreeing to acquire most of IMRIS' assets. In 2017, the company marked its

neg: Mayfair Capital Investment Management pension funds, family offices and endowments of £30 million. The Fund primarily provides finance to developers in the prime London residential property market in the form of debt finance/preferred equity. It aims to provide investors with a return of 15% a year. MCR2 is a residential development finance fund providing investors with investment returns from Greater London residential property. MC Property Unit Trust (“MCPUT”) MCPUT is an unregulated eligible investor Fund for investment by exempt approved pension funds, investment trusts, charities and sophisticated investors. The Fund’s investment objective is to provide total returns from investment in a diversified portfolio of

neg: Wraparound mortgage mortgage current again) the original lender has no real incentive to elect acceleration of the note since they remain in a secure position. http://www.meracord.com/Services/PrivateLoansLeasePayments/Seller-Finance Wraparound mortgage A wraparound mortgage, more commonly known as a "wrap", is a form of secondary financing for the purchase of real property. The seller extends to the buyer a junior mortgage which wraps around and exists in addition to any superior mortgages already secured by the property. Under a wrap, a seller accepts a secured promissory note from the buyer for the amount due on the underlying mortgage plus an amount up to the remaining

neg: Assetz Capital Excellence in Peer to Peer Lending – Fintech Excellence Awards 2015 Best P2P Lender – Credit Awards 2016 Best Easy Access Peer to Peer Provider – MoneyNet Awards 2017 In August 2016, Assetz Capital achieved the highest five-star rating in the first "Loan Based Crowdfunding" analysis by the independent financial sector analysts at Defaqto. Assetz Capital Assetz Capital is a British peer-to-peer or "marketplace" lender which allows private and institutional investors to lend money directly to small businesses (SMEs) and property developers. Assetz Capital was the first secured P2P lender in the United Kingdom. The company, founded by Stuart Law,

neg: South African property law borrower (the debtor). The lender takes on the risk that the borrower may not repay the money he owes. To reduce this risk, the law has devised a process which offers some protection to the lender, so that he may recover the money he is owed in the event that the borrower does not meet his obligations. The process distinguishes between cases in which the borrower is unwilling and cases in which he is unable to pay. The lender, in such cases, may seek an order for repayment and a declaration of insolvency respectively. These actions, however, do not resolve

neg: Secured transactions in the United States from their face value (and then will either renegotiate them or foreclose on the underlying collateral). In either situation, the mortgage lender or workout specialist's interest in underlying real property collateral will be secured under state real property law. But their lender's interest in the notes secured by the underlying collateral will be secured under Article 9. Security interests are particularly valuable in bankruptcy, because creditors who have security interests in a bankrupt debtor's estate take priority over creditors who lack such interests (unsecured creditors) in the distribution of the debtor's assets. A security interest becomes enforceable against the collateral

neg: No doc loan to reasonably verify the borrowers situation. For this reason most no doc loans are for business purposes or are for investment in something other than residential property. Private money is the main source of no doc loans, often with interest rates charged at 2% to 6% per month (24% to 72% p.a.). Non-conforming lenders focus on the lower risk no doc loans and offer more competitive interest rates. With either lender type the term of the loan is usually six to twelve months and often has expensive fees or a high interest rate for extending the loan. Australian low–doc and

neg: Collateral (finance) Collateral (finance) In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan. The collateral serves as a lender's protection against a borrower's default and so can be used to offset the loan if the borrower fails to pay the principal and interest satisfactorily under the terms of the lending agreement. The protection that collateral provides generally allows lenders to offer a lower interest rate on loans that have collateral compared to those without collateral because the risk of loss to the lender is lower. The reduction in interest rate can

neg: Folk2Folk injected millions of pounds through investments. FOLK2FOLK reports that approximately 75% of investors are repeat lenders. Folk2Folk FOLK2FOLK is a peer-to-peer business lender (P2P) specialising in secured lending for rural businesses and SMEs. It matches businesses looking for finance with local Lenders who receive a fixed interest rate of 6.5% p.a secured against UK property. Lenders receive the same interest rate that the Borrower pays, with FOLK2FOLK making its profit from an arrangement fee and annual renewal fee charged to Borrowers. Formed in 2013, FOLK2FOLK exists to help create and sustain financially and socially successful local communities, empowering local businesses

neg: Mortgages in English law upon the mortgagee (i.e. the secured lender) the same rights as a 3000-year lease holder. The reason for this reference to "3000 years" is that in a primitive protective measure, the common law said mortgage terms must always allow for the property to be redeemed in the end, when the debt is repaid. In the 18th century decision of "Vernon v Bethell" Lord Henley LC refused to enforce the conveyance of Vernon's sugar plantation in Antigua to a deceased London lender, Bethell, when Vernon had trouble repaying, even though some exchanges between the two had raised the possibility of giving

neg: English land law Act 1925 section 87 says mortgages confer upon the mortgagee (i.e. the secured lender) the same rights as a 3000-year lease holder. The reason for this reference to "3000 years" is that in a primitive protective measure, the common law said mortgage terms must always allow for the property to be redeemed in the end, when the debt is repaid. In the 18th century decision of "Vernon v Bethell" Lord Henley LC refused to enforce the conveyance of Vernon's sugar plantation in Antigua to a deceased London lender, Bethell, when Vernon had trouble repaying, even though some exchanges between the

neg: Folk2Folk Folk2Folk FOLK2FOLK is a peer-to-peer business lender (P2P) specialising in secured lending for rural businesses and SMEs. It matches businesses looking for finance with local Lenders who receive a fixed interest rate of 6.5% p.a secured against UK property. Lenders receive the same interest rate that the Borrower pays, with FOLK2FOLK making its profit from an arrangement fee and annual renewal fee charged to Borrowers. Formed in 2013, FOLK2FOLK exists to help create and sustain financially and socially successful local communities, empowering local businesses requiring debt finance by matching them directly with investors through its Peer-to-Peer lending platform. FOLK2FOLK enables

neg: Homeowner Protection Office providers, building officials, industry and related consumer associations, all levels of government, educational institutions, research organizations, architects, engineers, property managers, the legal community and the real estate community.<br> The HPO was formed as a response to the need to create basic consumer protections for buyers of new homes. The "Homeowner Protection Act" (Act) which passed on July 28, 1998 for the main purposes of strengthening consumer protection for buyers of new homes and improving the quality of residential construction in the province. The Act provided for the creation of the HPO and officially opened on October 1, 1998. Homeowner Protection

neg: Reverse mortgage ends and the borrower's home is sold, the lender will receive the proceeds of the sale and the borrower cannot be held liable for any debt in excess of this (except in certain circumstances, such as fraud or misrepresentation). Where the property sells for more than the amount owed to the lender, the borrower or his estate will receive the extra funds. Reverse mortgages in Canada are available mainly through HomEquity Bank, although none of the programs are insured by the government. At present, reverse mortgages are available in all the Canadian Provinces and territories with the exception of Yukon.

neg: The Montage Reno pad planned for the high-profile Cafe Med. Both would fall out. And as a result, Leal would hand the completed project back to its lender to avert a foreclosure disaster in December 2008. The Montage is now owned by Chicago-based ST Residential, a subsidiary of Starwood Assets and Holdings, a global company. The property is still marketed as a condominium resort with Reno's most exclusive condo amenities such as a 24-hour doorman, resort style pool deck, owners lounge and top grade finishes. The Montage Reno The Montage Reno (formerly Sahara Reno, Reno Hilton, Flamingo Hilton Reno, Flamingo Reno and Golden

neg: Foreclosure to cover the loss. In this case, the court overseeing the foreclosure process may enter a deficiency judgment against the mortgagor. Deficiency judgments can be used to place a lien on the borrower's other property that obligates the mortgagor to repay the difference. It gives lender a legal right to collect the remainder of debt out of mortgagor's other assets (if any). There are exceptions to this rule. If the mortgage is a non-recourse debt (which is often the case with owner-occupied residential mortgages in the U.S.), lender may not go after borrower's assets to recoup his losses. Lender's ability

neg: Property use Property use Property Use Pertaining to residential mortgages and their risk-based pricing methods, the property use is sub-categorized as follows: A primary residence is viewed and priced as the lowest risk factor of Property Use. There are no adjustments to pricing or rate. A second home is viewed and priced according to lender, some will assess the same risk factor as a primary residence while others will factor in a 0.125% to 0.5% pricing increase to mitigate the perceived risk. Lenders perceive that the borrower is less likely to value the second home if the borrower was faced with financial

neg: Private money investing the property; 4) The use of funds. The mortgage broker or lender then assesses the proposed loan, focusing on the value of the property being proposed as collateral. The maximum amount that may be borrowed is determined by establishing the amount of “protective equity” existing in the property. For the private mortgage investor, this equity provides the cushion for the risk taken in extending a loan. In the event that the borrower defaults on the loan, investors recoup their capital by assuming the borrower’s equity in the property. Protective equity is calculated by taking the liquidated value of the property

neg: Assetz Capital Assetz Capital Assetz Capital is a British peer-to-peer or "marketplace" lender which allows private and institutional investors to lend money directly to small businesses (SMEs) and property developers. Assetz Capital was the first secured P2P lender in the United Kingdom. The company, founded by Stuart Law, was launched in March 2013. In its first year of business the company lent over £19 million. AltFi.com recorded a lending growth rate for Assetz Capital of 300% pa in 2014. In January 2017, Assetz Capital announced it had lent over £200 million to British SMEs since launch. In April 2013, Assetz Capital raised

neg: Ropaigealach v Barclays Bank plc curious that mortgagors should only have protection in the case where the mortgagee chooses to take legal proceedings and not in the case where he chooses simply to enter the property. It was not possible to infer that Parliament intended to cover such a case (i.e. use creative purposive interpretation). Clarke LJ held under statute at the time, borrowers only have protection in the case where the lender has begun legal proceedings and not in the case of arrears where the lender simply has the right reserved where a demand is unpaid and chooses [if legally entitled] to enter. He

neg: Private money investing a new single $800,000 First Trust Deed loan. If the broker determines that the liquidated value of the property falls within acceptable limits, the broker prepares a loan package summarizing the underlying details. If a broker is not involved, the lender performs these functions in-house. The borrower is advised as to an approximate amount of funds that may be borrowed, and is provided with a preliminary estimate of a range of interest rates and loan fees that may be anticipated. This advisement often comes in the form of a Letter of Intent or Letter of Interest prepared by the lender.

neg: Property and casualty insurance guaranty funds Property and casualty insurance guaranty funds Property and casualty insurance guaranty funds are part of the property and casualty guaranty fund system, a non-profit, state-based, statutorily-created insurance consumer protection system that protects policyholders if an insurer goes bankrupt. Property and casualty guaranty funds step in to pay the covered claims (which would otherwise go partially or entirely unpaid) of policyholders of an insolvent insurer at levels determined by state law. This ensures policyholders and claimants at greatest risk are protected from the most severe consequences of an insurer's failure. Colorado's guaranty fund statute summarizes the purpose of guaranty funds. The

neg: Assetz Capital September 2017. Advertised returns in 2017 were 3.75% to 15% gross but will vary from lender to lender. These returns are subject to taxation and losses arising from defaults. Assetz Capital has a number of investment accounts. Target rates of interest vary based on the types of loans they invest in, security types, diversification of the investment, ease of access to funds in normal market conditions, and any additional cover such as a provision fund. The Manual Loan Investment Account allows investors to manually pick and choose secured loans to finance and offers the biggest gross return rate of between

neg: Lender of last resort resort is more controversial than for the domestic function. While most authors agree that there is a need for a national lender of last resort and argue only about the specific set-up, there is no agreement about the basic question of whether there can be an international lender of last resort. There are mainly two opposing groups: one group (Capie and Schwartz) says that an international lender of last resort (ILOLR) is technically impossible, but the other group (Fischer, Obstfeld, Goodhardt and Huang) wants a modified International Monetary Fund (IMF) to assume this role. Fischer argues that financial crises have

neg: Bluestone Group A$56m and an annual average growth rate of 178%. In 2002, Bluestone established residential lending operations in New Zealand, and in 2004, the business started work on a reverse mortgage unit, specialising in lending to retirees, many of whom are 'asset-rich, cash-poor'. Bluestone was the first major non-bank reverse mortgage lender in Australia, and the first lender in Australia to offer a 'fixed for life' product so that borrowers were not exposed to long dated interest rate risk. Bluestone's lump sum reverse mortgage product was expanded to include a 'draw-down' style product in 2006, allowing borrowers to receive funds in

neg: Floor loan Floor loan A floor loan refers to the minimum amount of money that a lender is willing to lend in order to enable the builder to begin the construction of a building that is to be occupied by tenants. The term is thus closely associated with mortgage and property loans. The rest of the loan's balance (called "holdback") is given to the builder upon the achievement of certain milestones related to the sale or lease of its residential space. For example, a bank may advance 80% of the balance of a property loan to the builder and release the remaining

neg: Equity of redemption the courts, the courts will frequently order judicial sale of the property instead. Equity of redemption The equity of redemption refers to the right of a mortgagor in law to redeem his or her property once the debt secured by the mortgage has been discharged. Historically, a mortgagor (the borrower) and a mortgagee (the lender) executed a conveyance of legal title to the property in favour of the mortgagee as security for the loan. If the loan was repaid, then the mortgagee would return the property; if the loan was not repaid, then the mortgagee would keep the property in

neg: Khaleeji Commercial Bank short-term investments of different maturities, designed to attract short term funds while offering higher yields. These are investment funds with property as an underlying asset. Different funds will be structured with varying property portfolios. These comprise Murabaha and Ijara financing for commercial and residential properties. In addition, the Bank focuses on financing activities in real estate, both in Bahrain and around the region. Main financing product and service offerings include: This is typically up to 24 months’ duration. This is typically up to 7 years’ duration. The Bank assists individuals in financing residential properties. Typically, these properties are associated with

neg: South Canterbury Finance Scheme. In June 2010, Allan Hubbard stood down as Chairman of South Canterbury Finance and was replaced by Bill Baylis. Despite its reputation as a South Island rural lender, South Canterbury Finance had made loans to property development throughout New Zealand, Australia and Fiji. At 30 June 2009, property loans were $414.2 million. Real estate lending represented 207 loans with an average net loan value of $1.15 million. Further, 37 per cent of lending was secured by a second or lower ranking mortgages. There were ten property loans greater than $10 million. For some lending, the interest was capitalised into

neg: Title loan the car title and the physical vehicle (which is usually stored by the lender) to secure the loan much like any secured loan works, and there are the same risk and factors involved for the borrower but in most cases they will receive more cash in the transaction since the lender has both the vehicle and title in their possession. A borrower will seek the services of a lender either online or at a store location. In order to secure the loan the borrower will need to have certain forms of identification such as a valid government-issued ID like a

neg: Ropaigealach v Barclays Bank plc in a land law journal explaining that in a county court action his client-borrowers had, since 1998, sued their mortgagee (secured lender) who have exercised their purported rights to sell their home without any court order. The lender quickly agreed to pay damages and costs to the borrower rather than defend a claim in trespass. Decisions of the final court of appeal demonstrate that the application of the Convention to the property relations of non-governmental persons is a challenging task, requiring the clearance of multiple hurdles. In "Manchester City Council v Pinnock" the Supreme Court eventually accepted that HRA Art

neg: Equity of redemption Equity of redemption The equity of redemption refers to the right of a mortgagor in law to redeem his or her property once the debt secured by the mortgage has been discharged. Historically, a mortgagor (the borrower) and a mortgagee (the lender) executed a conveyance of legal title to the property in favour of the mortgagee as security for the loan. If the loan was repaid, then the mortgagee would return the property; if the loan was not repaid, then the mortgagee would keep the property in satisfaction of the debt. The equity of redemption was the right to petition

neg: Securities lending paying the borrower a rebate and then dividing the remaining amount between the securities lender and the agent bank. This allows major investment funds to earn incremental income on their portfolio holdings. Where the lender is a pension plan, the transaction may need to comply with various exemptions under the Employee Retirement Income Security Act of 1974 (ERISA). Securities lending is legal and clearly regulated in most of the world's major securities markets. Most markets mandate that the borrowing of securities be conducted only for specifically permitted purposes, which generally include; When a security is loaned, the title of the

neg: LandAmerica Financial Group principally engaged in the title insurance business in the United States. Its products and services facilitated the purchase, sale, transfer, and financing of residential and commercial real estate. The company operated primarily in three segments: Title Insurance, Lender Services, and Financial Services. The Title Insurance segment provided title insurance, escrow and closing services, commercial real estate services, property appraisal and valuation, building and site assessments, survey coordination, construction disbursement, coordination of national multistate transactions, tax-deferred real property exchanges, and real estate transaction management services. The Lender Services segment provided services to regional and national lending institutions, which complemented those offered

neg: Loan Abuses can also take place in the form of the customer abusing the lender by not repaying the loan or with an intent to defraud the lender. Most of the basic rules governing how loans are handled for tax purposes in the United States are codified by both Congress (the Internal Revenue Code) and the Treasury Department (Treasury Regulations another set of rules that interpret the Internal Revenue Code). 1. A loan is not gross income to the borrower. Since the borrower has the obligation to repay the loan, the borrower has no accession to wealth. 2. The lender may

neg: London Central Portfolio London Central Portfolio London Central Portfolio (LCP) is a UK real estate investment firm, founded in 1990 by Naomi Heaton and operating in the accommodation sector in central London. As of 2017 it had approximately US$1 billion of assets under management. The company's services comprise real estate investment, property sourcing and acquisition, development, refurbishment and interior design, letting and rental management. LCP also advises listed real estate investment funds, including the UK's first sharia-compliant residential property funds. London Central Portfolio was founded to offer an integrated residential property acquisition, development and letting service. LCP's property funds target the rental sector

neg: United Kingdom insolvency law Third, security assists independent, out-of-court enforcement for debt repayment (subject to the statutory moratorium on insolvency), and so provides a lever against which the secured lender can push for control's over the company's management. However, given the adverse distributional impact between creditors, the economic effect of secured lending is a negative externality against non-adjusting creditors. With an ostensibly private contract between a secured lender and a company, assets that would be available to other creditors are diminished without their consent and without them being privy to the bargain. Nevertheless, security interests are commonly argued to facilitate the raising of capital

neg: J. P. Morgan Jr. to Europe to investigate and report on financial conditions there. In 1919 he was for a time chairman of the international committee, composed of American, British and French bankers, for the protection of the holders of Mexican securities. In November 1919, he was made a director of the Foreign Finance Corporation, which was organized to engage in the investment of funds chiefly in foreign enterprises. By the 1920s, Morgan Guaranty had become one of the world's most important banking institutions, as a leading lender to Germany and Europe. He attempted to defeat Franklin D. Roosevelt's plan for the New Deal

neg: National Conference of Insurance Guaranty Funds National Conference of Insurance Guaranty Funds The National Conference of Insurance Guaranty Funds (NCIGF) is a nonprofit national insurance group that supports the United States’ property and casualty insurance guaranty funds. An insurance consumer protection mechanism, property and casualty guaranty funds step in to pay covered insurance claims (which would otherwise go partially or entirely unpaid) of policyholders of an insolvent insurer at levels determined by state law. This ensures policyholders and claimants at greatest risk are protected from the most severe consequences of an insurer’s failure. Guaranty fund limits vary from state to state but generally are capped at

neg: Super jumbo mortgage seeking super jumbo mortgages) to make larger cash down payments to make up for the reduction in leverage currently being afforded, and a resurgence in the utilization of mortgages from private banks and other non-traditional and non-MBS lenders. In response to the tighted lender guidelines for loans over $1,000,000, many borrowers are using specialty mortgage brokers to assist with these unique loans. Super jumbo mortgage A Super Jumbo Mortgage is classified in the United States as a residential mortgage or other home-equity secured loan in an amount greater than $650,000, although lenders differ on just what constitutes a super jumbo

neg: Creative financing from private investors. Desperate borrowers with poor credit scores, bankruptcies, no verifible income, or too much debt often take out hard money loans when they are unable to qualify for traditional mortgages. Hard money becomes a last resort when borrowers cannot meet the lending standards set by banks or government sponsored enterprises such as Fannie Mae and Freddie Mac. A private mortgage is a loan secured by real estate that is made by a private lender, instead of a traditional lender, financial institution, or government institution. These loans are most commonly short term and last anywhere from 6 months to

neg: Commercial finance either financing or insure a lender who takes a risk on a smaller company to provide commercial finance. Businesses can also seek the assistance of Commercial finance advisors in the structuring and sourcing of commercial finance. These are known as Independent Financial Advisers or Commercial Finance Brokers. Commercial finance In the United States, commercial finance is the function of offering loans to businesses. Commercial financing is generally offered by a bank or other commercial lender. Most commercial banks offer commercial financing, and the loans are either secured by business assets or alternatively can be unsecured, where the lender relies on

neg: Mortgage fraud where the true price of a property is illegally inflated to provide cash-back to transaction participants, most often the borrowers, who receive a "rebate" which is not disclosed to the lender. As a result, the lender lends too much, and the buyer pockets the overage or splits it with other participants, including the seller or the real estate agent. This scheme requires appraisal fraud to deceive the lender. "Get Rich Quick" real-estate gurus' courses frequently rely heavily on this mechanism for profitability. Shotgunning: Occurs when multiple loans for the same home are obtained simultaneously for a total amount greatly in

neg: Credit agreements in South Africa money loans are usually smaller money loans (micro-loans) re-payable in instalments, where the lender is given no security for re-payment of the debt. In terms of pawn transactions, money is lent and the borrower provides an item of property as security, the resale value of which is greater than the loan. The creditor is entitled to sell the property if the money is not repaid by an agreed date, and to keep the proceeds of the sale. Mortgage agreements are money loans secured by the registration of a mortgage bond over land, the proceeds of which are usually used to

neg: Foreclosure rescue interest rates, and help homeowners before they defaulted. Key signs of legitimate foreclosure rescue include: Foreclosure rescue Foreclosure rescue in the United States is where a mortgage that is in arrears and where the lender is at the stage of foreclosing on the loan agrees to stop the foreclosure in exchange for funds received through loan modification or from a government grant. It may also refer to funds that allow the homeowner to repurchase the property at or after foreclosure. Legitimate foreclosure rescue can give the homeowner a realistic opportunity to regain their ability to get out of the situation

neg: QBE Insurance imposed upon anyone who borrows money to purchase a house. If a borrower allows such a policy to lapse, US lenders will purchase force-placed insurance for the property owner (also called lender-placed insurance, or collateral protection insurance) The use of force-placed insurance by lenders is an ongoing practice that, in the wake of the financial crisis, has become increasingly common, being cited by many experts as the cause of foreclosures themselves. The coverage prevents gaps in insurance, which is required by the terms of most mortgages. The financial industry justifies higher premium costs of force-placed insurance policies because of the

neg: Foreclosure rescue Foreclosure rescue Foreclosure rescue in the United States is where a mortgage that is in arrears and where the lender is at the stage of foreclosing on the loan agrees to stop the foreclosure in exchange for funds received through loan modification or from a government grant. It may also refer to funds that allow the homeowner to repurchase the property at or after foreclosure. Legitimate foreclosure rescue can give the homeowner a realistic opportunity to regain their ability to get out of the situation and make regular timely payments again. However the fact that homeowners are often desperate at

neg: Wholesale mortgage lenders onto the rate offered by the wholesale lender, with the difference between the broker rate and the lower lender rate going to the broker. Wholesale mortgage lenders A wholesale mortgage lender is a bank or other lending institution that funds and sometimes services mortgage loans, but uses independent mortgage brokers for the initial interaction with the client, including the application process. The mortgage broker originates the loan, however, the funding of the loan as well as the decision on the creditworthiness of the loan is handled by the wholesale lender. The name of the wholesale lender is typically appears on

neg: Credit rationing market, in the sense that the rationed borrower would be willing to obtain the funds at an interest rate higher than the one charged by the lender, who will not be willing to lend the extra funds, as the higher rate would imply lower expected profits. It is equilibrium rationing as there exists excess demand for credit at the equilibrium rate of interest. The reason for that is adverse selection, the situation where the lender is faced with borrowers whose projects imply different risk levels (types), and the type of each borrower is unbeknownst to the lender. The main intuition

neg: Mortgage repossession arrears. Mortgage possession involves legal proceedings in which a mortgagee, or other lienholder, usually a lender, obtains a court order for possession of a property, prior to exercising the mortgagor's equitable right of redemption. Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults the lender can possesses the property. Mortgage possession is not to be confused with foreclosure. In the United Kingdom foreclosure is a little used remedy which vests the property in the mortgagee with the mortgagor having no right to

neg: Landmark National Bank v. Kesler from Landmark National Bank and that lien was recorded on the deed with the county. Subsequently, Kesler secured a secondary mortgage for the same property from Millenia Corporation and that loan was later sold to Sovereign Bank. That second lien (and its sale to Sovereign) was recorded on the private MERS system but was never recorded with the county. Kesler later filed bankruptcy and listed the property with only the Sovereign lien. Upon receiving notice of the bankruptcy, Landmark served notice but to Kesler and Millenia but not Sovereign or MERS so the actual secondary lender was never notified. The

neg: Granite Run Mall 2011, Simon Property Group gave the mall back to its lender and the lender appointed Madison Marquette as the leasing and management agent. Madison Marquette announced plans to improve lighting, the parking lots, and sidewalks as well as to fill vacancies. On September 23, 2013, the Granite Run Mall was sold to BET Investments, a real estate development firm owned by Bruce Toll and Michael Markman, at a cost of $24 million. BET Investments intends to convert the mall into a mixed-use development consisting of residential, retail, and entertainment. The initial plans for the redevelopment project would keep the three

neg: Secured loan the second purpose where the debtors may receive loans on more favorable terms than that available for unsecured debt, or to be extended credit under circumstances when credit under terms of unsecured debt would not be extended at all. The creditor may offer a loan with attractive interest rates and repayment periods for the secured debt. Before the global economic crisis of 2006, the Financial Services Authority (FSA) estimated that the UK secured loan market had a net worth of £7,000,000,000. However, following the close of Lehman Brothers' sub-prime lender BNC Mortgage in August 2007, the UK's most prominent secured

neg: Wildlife Services individuals and businesses. The cost for Wildlife Services operational activities is shared, using federal funds and those supplied by the recipients of services. In FY2010, more than one-third of Wildlife Services operational funds protected human health and safety (35%). Agricultural resources protection accounted for 40 percent, with remaining work protecting natural resources and property. Projects were conducted on local, Tribal or state lands (41%), private property (32%) and federal lands (27%). Wildlife damage management can engender controversy, often around the use of lethal controls. Most wildlife encountered in damage situations (80.1%) are dispersed rather than killed. Removal of non-native species,

neg: Super jumbo mortgage compounded by a reduction in lending capacity for the institutions which must service these larger loans; as they lack a ready market for secondary sale the loans remain "on the books" of the lender, tying up capital in servicing that would otherwise be invested again. The assets against which super jumbo mortgages are secured are primarily classified as "luxury" residential real estate, a segment which is highly prone to market volatility in gross dollar terms. Luxury homes also require substantially more time to market in the event of foreclosure. In response to the multiple layered risk of writing Super Jumbo

neg: Loan-to-value ratio income. Higher LTV ratios are primarily reserved for borrowers with higher credit scores and a satisfactory mortgage history. Full financing, or 100% LTV, is reserved for only the most credit-worthy borrowers. The loans with LTV ratios higher than 100% are called underwater mortgages. Combined loan to value ratio (CLTV) is the proportion of loans (secured by a property) in relation to its value. The term ""combined" loan to value" adds additional specificity to the basic loan to value which simply indicates the ratio between one primary loan and the property value. When "combined" is added, it indicates that additional loans