An Overview and Critique of Industrial Banks and Loan Companies
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…
Definition and Calculation of Incurred But Not Reported (IBNR)
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…
In-House Financing Fundamentals: Categories, Criteria, Illustration
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…
Definition, Criteria, and Legal Aspects of Immediate Family
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…
Explanation and Application of Hypothecation, Illustrated with Examples
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…
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 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…
Struggling with your mortgage? Here’s what you need to know about being house poor and how to prevent it.
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…
HMDA: Safeguarding Borrowers through the Home Mortgage Disclosure Act
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,…
Understanding Home Mortgages: Defining, Qualifying for, and Exploring Different Types
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…