Liquidity: The degree to which a secured item can be turned into dollars
Least-cost attempt: A supply mandated by the Federal Deposit Insurance policies Firm Improve Operate from 1991 (FDICIA) one to necessary the fresh Government Put Insurance Enterprise (FDIC) to respond to difficulties with finance companies in how that is least costly to the brand new put insurance coverage finance. Find Mike Krimminger interviews.
Since the equities from societal businesses and you may governing bodies keeps strong places, he could be with ease bought and sold, and so keeps higher liquidity. Meanwhile, assets such as for instance homes are more difficult to offer instantaneously and be bucks.
Lis pendens: A formal, created see that case could have been submitted involving the control out-of a house. Come across Kris Slayden interviews.
Loan in order to really worth (LTV) ratios: The borrowed funds value separated by value of, used by loan providers and you can loan providers to choose the riskiness away from granting a mortgage. Inside direct-as much as this new casing crisis, finance companies stored LTV requirements ongoing even while construction costs proceeded so you’re able to soar, expanding its susceptability so you can a break in home prices.
Mortgage-recognized cover: A kind of asset-recognized shelter (ABS) comprised of an aggregation of several mortgage brokers., sold from the a lender otherwise wholesaler in order to a lender both a financial investment bank or a national department, that offer that it distinct mortgage loans to help you investors.