| Rate and Term Refinance
|
Refinance loan with proceeds that are used only to pay off the
outstanding principal balance of an existing first mortgage, to pay off
the outstanding principal balance of any existing subordinate mortgage
that was used in whole to acquire the subject property, to finance
closing costs (including prepaid expenses), and to allow cash back to
the borrower in an amount no more than the lesser of 2% of the balance
of the new refinance mortgage or $2000.
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| RATE CHANGE DATE |
On an adjustable rate loan, this is the date a new interest rate will be
put into effect . This change can occur every 6 months, 24 months or 36
months depending on the terms of the note.
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| RATE INDEX |
See INDEX.
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| Raw Land
|
Land in its natural state, having no physical improvements
such as grading, sewers, or erected structures.
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| Real Estate Owned (REO)
|
Property a lender acquires as the result of
foreclosure.
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| RE-RECORDING
|
The recording of a deed for a second time to correct an error contained
in the deed originally recorded.
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| REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) |
A Federal law that requires lenders to disclose, in advance, an estimate
of the costs associated with a loan and prohibits “kickbacks” for
referring business to 3rd parties associated with a loan.
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| REAL PROPERTY |
Land and all attachments to the land, such as buildings, crops or
mineral rights. Ownership of real property can be divided into various
types of interests and rights.
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| REBUILD LETTER |
A letter provided by the appropriate municipality, stating a structure
on a specific property can be rebuilt as originally constructed in the
case of damage or destruction.
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| Recast |
To re-amortize the remaining principal balance for the
remaining term of the loan. Typically used in negative amortization
loans.
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| RECISION |
The legal remedy for canceling, a contract and restoring the parties to
their original positions; a return to status quo.
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| Reconveyance |
Transfer of the title of land from one person to the
immediate proceeding owner. It is used when the performance of debt is
satisfied under the terms of a deed of trust.
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| RECORDING |
The act of recording a document such as a deed or mortgage in a public
registry thereby giving notice to future purchasers, creditors or other
interested parties. Recording is controlled by statute and usually
requires the witnessing and notarizing of an instrument to be recorded.
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| RECORDING CONFIRMATION |
Notification from the title company verifying the lien has recorded as
instructed.
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| RECORDING FEES |
The amount charged by a public records office to record the security
instrument within the county.
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| Recurring Charges |
Any debt that matures in more than six (6) months or
is continuous in nature, i.e., child support, child care, installment
and revolving accounts. Any large monthly debt that matures in less than
six (6) months must be given underwriting consideration.
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| Redemption Period |
Specified period in which a mortgagor can reclaim
foreclosed property by making full payment of the mortgage debt, under a
legally enforceable right of redemption in some states.
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| Refinance Transaction |
Repayment of a debt from the proceeds of a new
loan using the same property as security. We also consider the current
owner's placement of financing on a property that is not financed as a
refinance transaction.
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| Regulation Z
|
Regulation written by the Federal Reserve Board to
implement the Truth-in-Lending Act. It is a comprehensive regulation,
containing a full restatement of all the requirements of the act and is
enforced by the Federal Trade Commission (FTC). Both new real estate
loans and assumptions of existing loans come under Regulation Z's
purview.
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| Reinstatement |
Curing of all defaults by a borrower. Restoration of a
loan to current status through payment of arrearages.
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| Relative |
Borrower's spouse, child, or dependent or any other
individual related to the borrower by blood, marriage, adoption, or
legal guardianship.
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| RELEASE OF LIEN
|
When a lien against the property is satisfied, the note holder records a
document that reflects the discharge of the obligation and releases the
lien recorded against the property.
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| Release of Liability |
Agreement by a lender to terminate the personal obligation of a borrower
to pay a debt.
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| RELEASE OF MORTGAGE |
A recordable instrument that transfers title from a mortgagee to the
mortgagor when title is held as collateral security for a debt. Most
commonly used upon payment in full of a mortgage.
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| Remaining Economic Life
|
Estimated period of time during which a
property can be utilized profitably. See the front page of the URAR,
Improvement Analysis section for the Estimated Remaining Economic Life
of a property. The Remaining Economic Life must equal or exceed the term
of the loan.
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| RENTAL AGREEMENT |
A contract used by property owners who rent their property to another
individual. Rental agreements should state the amount of rent the
customer will collect from the renter.
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| Rent Loss Insurance |
Insurance that protects the landlord against loss
of rent or rental value due to fire or other casualty that renders the
leased premises unavailable for use and as a result of which the tenant
is excused from paying rent.
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| Reproduction Cost |
Money required to reproduce a building using the
same or equivalent materials, design, and construction methods, less an
allowance for depreciation. Element of the cost-approach method of
appraisal.
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| REQUEST FOR FULL RECONVEYANCE |
Written instructions provided by the beneficiary to the trustee to issue
a deed of Reconveyance when the conditions of obligation have been
fulfilled.
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| REQUIREMENTS TO BE MET |
Exceptions to be cleared and other actions that must be taken for a
title company to issue a final title policy per the lender’s
instructions.
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| RESCIND |
To void or cancel in such a way as to treat the contract, or other
object of the rescission, as if it never existed.
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| Rescission |
Cancellation or annulment of a transaction or contract by
law or by mutual consent.
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| Residential Home Mortgage |
Mortgage that covers a one(1) to four
(4)-family dwelling that is used to provide living accommodations.
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| Residential Mortgage Credit Report |
Detailed account of the credit,
employment, and residence history (as well as public records
information) of an individual.
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| RESPA |
Real Estate Settlement Procedures Act, a federal law that
requires lenders to provide home mortgage borrowers with information of
known or estimated settlement costs.
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| Retention (for OTC loans) |
A portion of construction loan funds that
are held back from disbursement until the project is complete.
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| Revolving Debt |
Arrangement for credit, e.g., charge cards, in which
the customer receives purchases or services on an ongoing basis prior to
payment. Repayment is usually at regular intervals but not for a
specified amount or term.
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| RIDER |
A rider is an addition to the security instrument.
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| Right of First Refusal |
Provision in an agreement that requires the
owner of a property to give another party the first opportunity to
purchase or lease the property before he or she offers it for sale or
lease to others.
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| Right of Ingress or Egress |
Right to enter upon or leave from
designated premises.
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| Right of Survivorship |
Co-ownership of property where, if one owner
dies, the undivided estate passes to the surviving owner(s) in the case
of joint tenancy and tenancy by entirety (husband and wife).
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| Right of Way |
Privilege operating as an easement upon land, whereby a
land owner, by grant or agreement, gives another the right to pass over
land.
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| Riparian Rights |
Right of owners to the water and land below the eight
water mark. These rights vary according to state law.
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| ROOM RENTS |
Income a homeowner receives from renting rooms in the same property in
which they live.
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| Rule of 78s |
Method used to calculate an interest rebate when an
installment loan that had add-on interest is paid off (or refinanced)
prior to its maturity date.
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| RURAL |
| A term used to describe a property’s location. For example, rural
properties are in remote locations, on non-paved access roads or streets
with support services more than 10 miles away. Rural is also a term used
to describe the country as opposed to the city. |
