Understanding the Housing Expense Ratio and Its Functionality
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 Hybrid Adjustable-Rate Mortgages: Definition and Mechanism
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…
Understanding High Ratio Loans: Definition, Computation, Illustration
What Is a High-Ratio Loan? A high-ratio loan refers to a loan where the loan value is significantly high compared to the value of the property used as collateral. In…
Understanding the High Street Bank: Definition and Function
What Is a High Street Bank? A high street bank, a term commonly used in the UK, refers to a prominent retail bank with numerous branch locations strategically situated in…
Authorization Waiver for HIPAA
What is a HIPAA Waiver of Authorization? A HIPAA Waiver of Authorization is a crucial legal document that permits the sharing of an individual’s health information with third parties. This…
Explained: Holdovers – Definition, Mechanism, Common Queries
What Are Holdovers? Holdovers, in finance, represent transactions, typically checks, that have not yet been processed by banks. The period during which checks are designated as holdovers usually spans a…
The HERO Act stands for Heroes Earned Retirement Opportunities.
What Is the Heroes Earned Retirement Opportunities (HERO) Act? The Heroes Earned Retirement Opportunities (HERO) Act, enacted in 2006, provides a significant benefit for military personnel by enabling them to…
Understanding the Hammer Clause: Definition, Operation, and Illustration
What is a Hammer Clause? A hammer clause, also referred to as a blackmail clause, settlement cap provision, or consent to settlement provision, is a critical element found in insurance…
What exactly is Hawala? It’s a form of transferring money that doesn’t involve the physical movement of money.
Understanding Hawala: A Discreet Money Transfer System Hawala, often referred to as an underground banking system, is a method of transferring funds without the physical movement of money. Essentially, it…
Definition of Grace Period for Borrowers, Its Mechanism, and Illustrative Instances
Understanding Grace Periods A grace period is a specified timeframe following a payment due date during which a payment can be made without repercussions. Commonly found in mortgage loans and…