Understanding Industrial Banks An industrial bank, also known as an industrial loan company (ILC), is a state-chartered financial institution often owned by a commercial entity and not regulated by a…
What Is Incurred But Not Reported (IBNR)? Incurred but not reported (IBNR) serves as a crucial reserve account within the insurance sector. This reserve anticipates claims or events that have…
Understanding the Concept of In-House Financing In-house financing, also known as seller financing, is a method where retailers or firms provide direct financing to consumers, enabling them to purchase goods…
What Is Immediate Family? When it comes to the definition of “immediate family,” there can be discrepancies between personal understanding and legal interpretations. The way we categorize immediate family can…
Understanding Hypothecation in Finance Hypothecation is a financial term referring to the practice of pledging an asset as collateral to secure a loan. In this arrangement, the asset’s owner retains…
What Is a Hybrid ARM? A hybrid adjustable-rate mortgage, referred to as a hybrid ARM or “fixed-period ARM,” combines the features of a fixed-rate mortgage with those of an adjustable-rate…
What Is a Housing Expense Ratio? A housing expense ratio represents the portion of your pre-tax income allocated to cover your housing costs. Commonly known as a front-end ratio, lenders…
Understanding House Poor: What Does It Mean? House poor is a term used to describe individuals who allocate a significant portion of their income towards homeownership expenses, such as mortgage…
What Is the Home Mortgage Disclosure Act (HMDA)? The Home Mortgage Disclosure Act (HMDA) is a federal law that mandates mortgage lenders to maintain records pertaining to their lending practices,…
What Is a Home Mortgage? A home mortgage is a financial product designed for individuals seeking to purchase a residential property. It is typically issued by banks, mortgage companies, or…