Common Terms (Portfolio Loans)

Common Terms  (Portfolio Loans)

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  Amortization Term - The length of time a note is paid on.

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  Arrears - When a note is not current, i.e… 90 days in arrears = 90 days late

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  Daisy Chain - When there are multiple brokers involved in a transaction.

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  Distressed Asset - Another name for a non performing loan or note.

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  Indicative Bid - A bid that indicates an approximate offer for a loan portfolio, subject                              to due diligence.

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  Maturity Date - The day/date a loan is due.

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  Non Circumvent Agreement - An agreement usually signed by brokers that protects that                                                    each will get paid on a transaction.

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  Performing Loan - A loan that is being paid on as agreed.

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  Pool - A group of notes owned by the same bank that are lumped together, usually              with the intent of selling them.

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  Short Sale - When a bank agrees to allow a delinquent payer sell their home and pay off                       an agreed upon amount which is less than what is owed.

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  Tape - A name given to an excel spreadsheet containing information on a pool of notes