Tag: Lending

Quarterly Income Preferred Securities – QUIPS definition explanation

What is Quarterly Income Preferred Securities – QUIPS?
Shares that are an interest in a limited partnership that exists solely for the purpose of issuing preferred securities and lending the proceeds of the sales to its parent company. They usually have a $25 par value, NYSE listing and cumulative quarterly distributions. Read more for examples and further explanation including related video clips and also comments
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Low / No Documentation Loan definition explanation

What is Low / No Documentation Loan?
A category of loans which generally fall into the Alt-A sector of mortgage lending that gives borrowers the ability to state a limited amount of information on their mortgage application. Limited income, employment or asset information may be required depending on the specific type of low documentation loan; however, in some cases, the borrower may not need to provide them at all. There are subtle differences between various low documentation and no documentation loan programs offered by mortgage lenders. Read more for examples and further explanation including related video clips and also comments
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Avalize definition explanation

What is Avalize?
The act of having a third party (usually a bank or lending institution) guarantee the obligations of a buyer to a seller per the terms of a contract such as a promissory note or purchase agreement. The bank, by “”avalizing”” the document (usually “”by aval”” will be written on the document itself), acts as a cosigner with the buyer in the transaction. Read more for examples and further explanation including related video clips and also comments
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Secured Debt definition explanation

What is Secured Debt?
Debt backed or secured by collateral to reduce the risk associated with lending. An example would be a mortgage, your house is considered collateral towards the debt. If you default on repayment, the bank seizes your house, sells it and uses the proceeds to pay back the debt. Read more for examples and further explanation including related video clips and also comments
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Triggering Term definition explanation

What is Triggering Term?
A word or phrase that when used in advertising literature requires the presentation of the terms of a credit agreement so that individuals can compare credit offers on a fair and equal basis.

Open-end and closed-end credit each have a set of triggering terms associated with them; if a single one is used in advertising material, then the full set of credit terms must also be displayed so as not to confuse or deceive consumers.

Triggering terms are set and monitored by the Federal Trade Commission, in the United States. Read more for examples and further explanation including related video clips and also comments
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Lending Facility definition explanation

What is Lending Facility?
A mechanism that central banks use when lending funds to primary dealers. Lending facilities provide financial institutions with access to funds in order to satisfy reserve requirements using the overnight lending market. Lending facilities are also used to increase liquidity over longer periods such as by using term auction facilities. Read more for examples and further explanation including related video clips and also comments
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Credit Crisis definition explanation

What is Credit Crisis?
A crisis that occurs when several financial institutions issue or are sold high-risk loans that start to default. As borrowers default on their loans, the financial institutions that issued the loans stop receiving payments. This is followed by a period in which financial institutions redefine the riskiness of borrowers, making it difficult for debtors to find creditors. Read more for examples and further explanation including related video clips and also comments
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American Institute Of Banking – AIB definition explanation

What is American Institute Of Banking – AIB?
Founded in 1907, the American Institute of Banking (AIB) is a provider of education and training to the banking industry. More than 150,000 bankers participate in its programs each year. Read more for examples and further explanation including related video clips and also comments
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