Glossary

A B C D E F G H I J L M N O P S T U V W Y

Acreage - a 2 dimensional measure of land equaling 160 square rods, 10 square chains, 4,840 square yards, or 43,560 square feet


Adjustable Rate Mortgage - Mortgage where the interest rate adjusts periodically up or down using a specific index. It is also called a variable rate mortgage


Adjusted Gross Income - Gross income of a building if fully rented, less an allowance for estimated vacancies


Adjustment Interval - The period of time between changes in the interest rate for an adjustable-rate mortgage. Typical adjustment intervals are one year, three and five years


Amortization: The process of paying both the principal and interest on a loan through regularly scheduled payments

Anchored - refers to a piece of commercial real estate property, which will serve as the main tenant in a shopping center


Anchors - a long term, credit worthy tenant. The presence of one or more "anchors" enhances the value and the ability to obtain financing for a shopping center

Annual Percentage Rate (APR) - This is the actual rate of interest your loan would be if you included all of the other associated costs such as closing costs and points


Apartment Conversion  - When a rental apartment building is converted to individually owned units


Apartment Rehabilitation - Extensive remodeling of an older apartment building

Application Fee - fee charged by a lender at the time of loan application. This fee may include the cost of third party reports, underwriting fees, loan processing, credit reports, or other loan costs which are incurred during the initial underwriting process


Appraisal: An estimate of the value of a property, made by a qualified licensed professional called an appraiser


ARM: See Adjustable Rate Mortgage


Assisted Living - type of senior housing that is typified by independent living and limited assistance to its renters


Assumable Loans: Loans that can be transferred to a new owner if a home is sold

Available SF - the square feet available for lease


Average Annual Occupancy - percentage of currently rented units in a building, city, neighborhood or complex


Average Daily Rate -  a hotel rate used to evaluate the average daily rate of a hotel inclusive of vacancy and seasonality


Balloon (Payment) Mortgage  - Usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining principal balance, due at a time specified in the contract


Basis Points (BP) - 1/100th of 1% expressed as margin over index rate


BC & D Lender or Loan -The term BC & D is a rating of the loan. We refer to BC & D as "problem or troubled" credit rather than using these letters


Bond Financing - Type of financing that is a promise to repay the principal along with interest on a specified date

Borrowing Entity Type - the legal form under which property is owned

Bridge Loan -  short-term financing or interim loan for borrowers who need additional time to find permanent financing for a commercial property. Also called a swing loan. See Bridge Financing

Building Permit - a document, issued by government regulatory authority that allows a builder to construct or modify a structure


Building SF - the usable square footage of the building.


Buydown - the process of paying additional points on the loan to reduce the monthly mortgage. There are typically two specific types: a Permanent Buydown, and a Temporary Buydown. In a Permanent Buydown, a sufficient amount of interest is prepaid to lower the rate permanently. In a Temporary Buydown, only a sufficient interest is paid to lower the payment for the first three years. The reason to Temporarily Buydown, a loan is to lower the current payments thereby more easily qualifying for the loan. This usually makes sense because income will usually continue to increase as the interest does. The most common Temporary Buydown is called 3-2-1, meaning three percent lower the first year, tow percent lower the second year, and one percent lower the third year. 

Cap: The maximum which an adjustable-rate mortgage may increase, regardless of index changes. An interest rate cap limits the amount the interest can change, while a payment cap limits the increase in monthly payment to a specific dollar amount. 


Cap Rate: A net yield set by an investor to determine the value of an income producing property


Capital Expenditures: Line items on a profit and loss statement that would not be expensed on an annual basis. This category would include replacement of major building systems, such as roofs, driveways, etc


Capitalization Rate: A method used to estimate the value of a property based on the rate of return on investment

Cash-Out Refinancing - when the newly proposed mortgage involved in a refinance has a principal amount greater than the principal amount of the existing mortgage being refinanced, and all or a portion of the equity greater than $2,000 is converted to cash

Clearance - the distance between the building’s floor and effective storage ceiling


Climate Controlled - an industrial and self-storage term that represents temperature controlled commercial space


Closing: The meeting between the buyer, seller and lender (or their agents) where the property and funds legally change hands. Also referred to as "settlement"


Closing Costs: The cost and fees associated with the official change in ownership of the property and with obtaining the mortgage, that are assessed at the closing or settlement

CMBS (Commercial Mortgage Backed Security) - a bond or other financial obligation secured by a pool of mortgage loans with commercial property

Commercial Conduit: Direct link to an institutional lending source


Comparative Market Analysis: An estimate of the value of a property based on an analysis of sales of properties with similar characteristics


Conduit: The financial intermediary that sponsors the conduit between the lender(s) originating loans and he ultimate investor. The conduit makes or purchases loans from third party correspondents under standardized terms, underwriting and documents and then, when sufficient volume has been obtained, pools the loans for sale to investors in the CBMS markets

Congregate Care - a type of senior housing  typified by a central eating facility, smaller rooms, and a higher level of care for its tenants

Constant Maturity Treasure (CMT) - an index based on the U.S. Treasury that is used in the pricing of debt for banks

Construction Loan - A short term loan to pay for the construction of commercial buildings. These loans typically provide periodic disbursements to the builder once each stage of the building is completed. When construction is completed a take-out or permanent loan is used to pay off the construction loan

Contingency - an condition of an agreement that must be satisfied before the total agreement can be consummated

Convertible: An option available on some adjustable rate mortgages (ARM's) that allows the loan to be converted to fixed rate mortgage. Conversion usually involves paying a one-time fee and conversion may be limited to within a certain time - frame


Cosigner: Someone who is willing to sign mortgage loan obligation with you in case you default on your monthly payments. Normally, the cosigner is required to go through the same application and approval process as the original signer of the loan


Credit Company: A lending organization that obtains it source of funds from the commercial market


Credit Report: A search through your existing credit history by a qualified credit bureau to determine if, and the number of times, you may have been delinquent making monthly payments on previous debts. Even when a credit report is for the most part positive, many lenders require written explanation for any negative comments within the credit report. This type of report is usually required to obtain a mortgage loan

Credit Score - a numerical index which represents an estimate of an individual's financial creditworthiness. It is based on a subset of the information in an individual's credit report. Lenders, such as banks and credit card companies, use credit scores to determine credit limits and interest rates

Credit Tenant - a tenant, who has obtained a debt rating by S&P or Moody's of "BBB-" or better



Debt Service Coverage Ratio (DSC): A 1.0 means breakeven. The ratio is calculated by taking the net operating income and dividing it by the mortgage payments. Most lenders look for a ratio of 1.25 or higher


Debt Service: The periodic payments (principal and interest) made on a loan


Defeasance - a mortgage clause that allows the borrower the right to prepay a commercial mortgage by purchasing US Treasuries in an escrow account to pay off ongoing debt service

Density - the number of buildings or persons occupying a certain area of land, generally an acre

Depreciation (Accounting) - reduces the value of an asset by allocation as a result of wear and tear, age, or obsolescence over its lifetime

Depreciation (Appraisal) - a charge against the reproduction cost (new) of  real property for the estimated wear and obsolescence. Depreciation may be physical, functional or environmental


Discount Rate. - the rate of interest that the Federal Reserve charges member banks for loans


Double-Wide - a mobile home consisting of two units which have been fastened together along their length


Due Diligence: The legal definition: a measure of prudence, activity or assiduity, as is properly to be expected from, and ordinarily exercised by, a reasonable and prudent person under the particular circumstances. In CMBS: due diligence is the foundation of the process because of the reliance securities investors must place on the specific expertise of the professionals involved in the transaction

Effective Gross Income - The gross income of a building if fully rented, minus an allowance for estimated vacancies


Engineering Report: Report generated by an architect or engineer describing the current physical condition of the property and its major building systems, i.e., HVAC, parking lot, roof, etc. The report also determines an amount for calculating replacement reserves, if needed


Environmental Report: Report generated by an qualified environmental firm to determine potential environmental hazards in a building's region or within the building itself


Environmental Risk: Risk of loss of collateral value and of lender liability due to the presence of hazardous materials, such as asbestos, PCB's, radon or leaking underground storage tanks (LUSTS) on a property


Equity: 1.The difference between the fair market value and current indebtedness, also referred to as "owner's interest". 2. The difference between the amount owed on the loan and the current purchase price of the home or property

Equity Capital: Capital raised from owners. In a commercial real estate case, a lender will also provide equity capital for a percentage of ownership. 

Escrow: 1. A special account set up by the lender in which money is held to pay for taxes and insurance. 2. A third party who carries out the instructions of both the buyer and seller to handle the paperwork at the settlement

Extended Stay - a hotel that caters to a business traveler on an extended lodging period

Fair Market Value: An appraisal term for the price which a property would bring in a competitive market, given a willing seller and willing buyer, each having a reasonable knowledge of all pertinent facts, with neither being under any compulsion to buy and sell. 

Fannie Mae: A congressionally chartered corporation which buys mortgages on the secondary market from Banks, Savings & Loans, Etc; pools them and sells them as mortgage-backed securities to investors on the open market. Monthly principal and interest payments are guaranteed by FNMA but not by the U.S. Government

Farm - land used for agricultural purposes for crop and livestock farming/

Federal Funds Rate (Fed Funds) - The interest rate that banks charge each other for the use of Federal funds typically overnight. It changes daily and is a sensitive indicator of general interest rate trends. The Federal funds rate is one of the two interest rates controlled by the Fed

FHA: Federal Housing Administration, a government agency

Fit-Out - tenant improvements within a commercial property

Fixed Rate Mortgage: A mortgage with an interest rate that remains constant for the life of the loan. The most common fixed-rate mortgage is repaid over a period of 30 years; 15-year fixed-rate mortgage are also available. 

Flex Space - an industrial property, which has both an office and an industrial component

Floating Rate Mortgage: See Adjustable Rate Mortgage


Floor - To - Area Ratio (FAR): The relationship between the total amount of floor space in a multi - story building and the base of that building. FAR's are dictated by zoning laws and vary from one neighborhood to another, in effect stipulating the maximum number of stories a building may have


Foreclosure: The process by which a lender takes back a property on which the mortgagee had defaulted. A servicer may take over a property from a borrower on half of a lender. A property usually goes in to the process of foreclosure if payments are no more than 90 days past due


Forward Commitment: A written promise from a lender to provide a loan at a future time

Franchise - A method of business organization in which a company which already has a successful product or service (the franchisor) enters into a contract with other businesses (franchisees) which will operate under the franchisor's trade name and usually with the franchisor's guidance, in exchange for a fee


Franchise Fees - the fee is usually an initial purchase requirement plus an ongoing percentage of gross sales


Freestanding Retail - a building which contains only one retail business. Fast-food franchises and retail stores are often freestanding buildings


Freestanding - one commercial building meant to be occupied by a single user


Full Service - a hotel term that describes services offered to its hotel guests excluding lodging such as room service, valet, concierge, restaurant and bar)


Freddie Mac (Federal Home Loan Mortgage Corporation): A government entity which buys loans from conventional lenders and packages them for sale to investors as securities

General Partnership - in a partnership n which two or more individuals or persons conduct business as partners; each partner’s liability is not limited and offers riskier asset protection that even a sole proprietor


Good Faith Deposit - a deposit made by the real estate buyer(s) to evidence their honesty and sincerity of completing the transaction. Also called an earnest money deposit


Government Subsidized - rental assistance that is partially paid by the government (such as Section 8 residential subsidies)


Gross Income: Total income, before deducting taxes and expenses. The scheduled (total) income, either actual or estimated, derived from a business or property


Hard Money: High interest rate financing done quickly based more on equity when conventional financing may not be available

High Rise Office - a term for an office building that is high enough to require an elevator


HUD: Housing and Urban Development, a federal government agency


Index: An economic indicator, usually a published interest rate, that determines changes in the interest rate of an adjustable-rate mortgage. ARM rates are adjusted to reflect changes in the index. The margin is the amount a lender adds to the index to establish the actual interest rate on an ARM


Industrial - property used for industrial purposes, such as factories


Industrial for Lease - industrial space available


Interest - the sum paid for borrowing money, which pays the lender’s costs of doing business


Interest Rate Cap Limits the interest rate or the interest rate adjustment to a specified maximum. This protects the borrower from increasing rates


Investment Banker An individual or institution which, acts as an underwriter or agent for corporations and municipalities issuing securities, but which does not accept deposits or make loans. Most also maintain broker/dealer operations, maintain markets for previously issued securities, and offer advisory services to investors also called investment banker. See also bank, commercial bank, and originator, syndicate


Joint Venture - A strategic alliance by two or more individuals or entities to engage in a single project or undertaking. Joint ventures are used in real estate development as a means of raising capital and spreading risk.

Lease Assignment: An agreement between the commercial property owner and the lender that assigns lease payments directly to the lender


Leasehold Improvements: The cost of improvements for a leased property. Often paid by the tenant


Lessee - tenant in a building



Limited Liability Company (LLC) - the restriction of one’s potential losses to the amount invested. The absence of personal liability. Provided to stockholders in a corporation and limited partners of a limited partnership


Limited Partnership - one in which there is at least one partner who is passive and limits liability to the amount invested, and at least one partner whose liability extends beyond monetary investment


Limited Service - a hotel that offers lodging services only

Lines of Credit: An arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period


Loan Processing Fee: The fee charged by a lender, to prepare all the documents associated with your mortgage


Lock - In: The process of fixing the interest rate for a specific period of time irrelevant of future or impending economical changes to the interest rate. This process may require a fee or premium as it reduces your risk that the monthly payments will change while the loan paperwork is filed


Lock - Out Period: A period of time after loan origination during which a borrower cannot prepay the mortgage loan


London

Interbank Offered Rate (LIBOR): The short - term rate (1year or less) at which banks will lend to each other in London. Commonly used as a benchmark for adjustable - rate financing

Lot Size - total square footage of the land


Low  Rise Office - a commonly used expression referring to an office building that is too low to require an elevator


LTV: Loan to Value: Proposed loan amount divide by the value of the property

Mall - (also called Super Regional Center) an enclosed shopping center with three or more major department stores which draws from a large trade area of 12 or more miles


Management Fee - the agreed-upon compensation paid to a property management company for managing a real estate project. The fee is usually based on a percentage of effective gross income


Manufacturing - (also called Heavy Industrial) auto making, textiles, steel, chemicals, and food processing are typical uses of such properties. Typically zero to five percent office space


Margin - the amount that is added to an index rate to determine the total interest rate


Marketing Expenses - expenses accrued to market commercial properties


MAT - Monthly Average Treasury

Maturity - 1. The termination period of a note (e.g., a 25-year mortgage has maturity of 25 years.) 2. In sales law, the date a note becomes due


Max Contiguous SF - the amount of available connected square feet


Max Lease Rate - the highest asking lease rate

Mezzanine:  A loan that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not repaid back in time and in full. It is generally subordinated to senior liens such as banks and venture capital companies

Mid-Rise - a commonly used expression referring to an office building, that is high enough to require stairs, but too low to require an elevator


Min Lease Rate - the lowest lease rate available


Min. Divisible SF - the smallest amount of available square feet

Mini-perm: Short term permanent financing, usually 3 to 5 years


Mixed Use - a real estate development that contains two or more different uses all intended to be harmonious and complementary. An example would include a hotel, retail shops and a restaurant on the top floor


Mortgage Banker: An entity that makes loans with its own money and then sells the loan to other lenders


Mortgage Broker: An entity that arranges loans for borrowers


Multi - Family Property Class A: Properties are above average in terms of design, construction and finish; receives the highest rental rates; has superior location, in terms of desirability and / or accessibility; generally are professionally managed by national or large regional management companies


Multi - Family Property Class B: Properties frequently do not possess design and finish reflective of modern and up to date standards and preferences; construction is sufficient; receives average rental rates; unit sizes are usually larger than class c property standards


Multi - Family Property Class C: Properties provide functional housing; show some signs of deferred maintenance; command below average rental rates; geenrally located in less desirable areas; typically managed by small, local property management companies or the owner;

Net Effective Rent: Rental rate adjusted for lease concessions



Net Operating Income (NOI) - total income minus operating expenses, adjustments, etc., but before mortgage payments, property taxes, and insurance, tenant improvements and rental commissions


Net-Net Lease (NN) - usually requires the tenant to pay for property taxes, operating expenses and insurance premiums in addition to the rent

Net Worth- total assets, including cash, less total liabilities of an individual or company

Non-Recourse - a mortgage or deed of trust securing a note without recourse allows the lender to only get the security (subject real property) for repayment in the event of default, and the borrower is not personally liable. This type of loan does not allow a deficiency judgment. See Non-Recourse Loan


Notice of Default (NOD) - A Notice of Default is a legal action giving Public Notice that loans or other liens on your property are delinquent and the lender or the lien holder intends to foreclose in a Trustee's sale if the payments are not brought current

Occupancy Rate - the percentage of space or units that are leased or occupied


Operating Expense: Periodic expenses necessary to the operation and maintenance of an enterprise (e.g., taxes, salaries, insurance, maintenance). Often used as a basis for rent increases. 

Operating Lease - from a financial reporting perspective, a lease that allows the use of equipment or asset but does not transfer ownership rights

Origination Fee - a fee to secure a completed mortgage application from a commercial or residential borrower

Participation: A type of ownership interest in a mortgage or loan


Percentage Lease: Commonly used for large retail stores. Rent payments include a minimum or "base rent" plus a percentage of the gross sales "overage." Percentages generally vary from 1% to 6% of the gross sales depending on the type of store and sales volume


Permanent Take-Out Loan - long-term financing that typically replaces short-term construction or bridge financing upon the completion of the project


Phase I: An assessment and report prepared by a professional environmental consultant who reviews the property - both land and improvements - to ascertain the presence or potential presence of environmental hazards at the property, such as underground water contamination, PCB's, abandoned disposal of paints and other chemicals, asbestos and a wide range of other potentially damaging materials. This Environmental Site Assessment (ESA) provides a review and makes a recommendation as to whether further investigation is warranted (a Phase II Environmental Site Assessment). This latter report would confirm or disavow the presence of an mitigation efforts that should be undertaken


PITI: Principal, interest, taxes and insurance. Your calculated estimate of monthly payments


Points: Loans fee paid by the borrower. One point is 1% of the loan amount

Pooled Funds - funds from many individual investors which are aggregated for  investment purposes

Potential Gross Rent - gross income of a building if fully rented

Power Center - 250,000 to 600,000 SF; general merchandise shopping; 3 or more category-killer home improvement centers, discount department stores, warehouse clubs or off-price stores as anchors

Pre-Leased - to obtain lease commitments in a building or complex prior to its being available for occupancy


Prepayment Penalty: A fee for paying off a loan early before it is due


Pre-qualification: The process of determining the amount of money a particular lender will let you borrow. You should strive to obtain pre-qualification with at least two or three lenders


Prime Rate: An artificial rate set by commercial bankers. Many banks will use the Wall Street Prime rate. This is a rate set by the top lending banks in the country


Principal:  The amount of debt, not including interest, left on a loan

Pro Forma - (from Latin pro forma, "according to form") financial statements showing what is expected to occur

Property Appraisal: A report showing exactly how much the particular property is worth 

Property Classification: Most lenders will classify a property by its age and needed maintenance. As an example many insurance companies will only loan on properties that are class A, meaning that the properties age is 10 years old or less and is not in need of repair


Property Tax: Taxes based on the market value of a property. Property taxes vary from state to state and county to county


Rate Index: An index used to adjust the interest rate of an adjustable mortgage loan (e.g., the changes in U.S. Treasury securities (T-bill) with 1-year maturity. The weekly average yield on said securities, adjustable to a constant maturity of 1 year, which is the result of weekly sales, may be obtain weekly from the Federal Reserve Statistical Release H.15 (519). This changes in interest rates is the "index" for the change in a specific Adjustable Mortgage Loan)

Ranch - land devoted to raising livestock under range conditions with forage grass as main source of feed

Recourse: A loan for which the borrower is personally liable for payment if the borrower defaults

Recreational Land - land designated as park land or recreational land by the grant or deed of the land to the county


REIT (Real Estate Investment Trust): Pooled funds that purchase and hold commercial real estate


Refinance: The renewal of an existing loan by the some borrower. 

Regional Center - a shopping center with one or two department stores and a variety of smaller stores. It is larger than 300,000 square feet and attracts from an eight mile radius or more

Renovation - remodel an existing building which may include structure updating to modern style and functionality

Rent Roll - a list of tenants leasing a property, which spells out the lease terms, area, and the rental amount

Rent Step-Up: A lease agreement in which the rent increases every period for a fixed amount of time or for the life of the lease


Replacement Reserves: Monthly deposits that a lender may require to be set aside for the replacement of major building components such as roofing, HVAC, mechanical equipment, carpets, roof, etc


Reserve Funds: A portion of the bond proceeds that are retained to cover losses on the mortgage pool. A form of credit enhancement (also referred to as "reserve accounts")


Retail - a property type which sells goods to consumers

Retained Earnings - earnings not paid out as dividends or distributions but instead reinvested in the core business. Also called earned surplus or accumulated earnings or un-appropriated profit


Sale / Lease Back: one party sells a property to a purchaser and the buyer immediately leases the property back to the seller.  Sometimes it yields tax benefits


Savings & Loans: A federally or state charted financial institution that takes deposits from individuals and companies, originates and funds mortgages, and pays dividends


SBA: Small Business Administration, a federal government agency


Second Mortgage: A mortgage on real estate, which has already been pledged as collateral for a senior lien. The second mortgage carries rights, which are subordinate to those of the first


Secondary Financing: A loan secured by a mortgage or trust deed, in which the lien is junior, or secondary, to another mortgage or trust deed


Secondary Mortgage Market: The buying and selling of first mortgages or trust deeds by banks, insurance companies, government agencies, and other mortgagees. This enables lenders to keep an adequate supply of money for new loans. The mortgages may be sold at full value ("par") or above, but are usually sold at a discount

Security - the property that will be used as collateral for a loan

Self-Storage - a building that provides commercial or personal storage for lease by companies and/or consumers. Also referred to as Mini-Storage.

Senior Housing - a residential property with multiple living units specifically made for care of senior citizens and/or physically disabled persons. Includes Assisted Living, Congregate Care, Senior Apartments and Skilled Nursing Centers

Sole Proprietorship - a one-person owned business with no formal or registered

Spread: Number of basis points over a base rate index


Standby Commitment: A formal offer by a lender making explicit the terms under which it agrees to lend money to a borrower over a certain period of time

Step Lease - a lease in which the rent may change during the term of the lease. Often it allows the lessee to pay less initially and more later. With a Step-Down Lease, the lessee pays more initially and the payment amount decreases over the term of the lease

Strip Center - A string of smaller stores or services in a commercial area generally with common parking, comprised without central leasing, management, or a theme

Suburb - describes a town or unincorporated developed area in close proximity to a city. Suburbs, largely residential, are often dependent on the city for employment and support services

Structural Report: (see Engineering Report)

Tax & Insurance Impound: Monthly deposits that a lender may require to be included with principal and interest payments for the payment of taxes and insurance


Tenant Improvements (TI):. These are typically modifications to office, retail, or industrial property, to requested needs of the tenant. Tenant Improvements include installation or removal of interior walls or partitions, carpeting or other floor covering, shelves, windows, toilets, etc

Term: The length of a mortgage

Third Party Costs - costs resulting from third party reports, such as inspection reports, appraisal reports, engineering reports or environmental reports


Title: The actual legal document conferring ownership of a piece of real estate


Title Insurance: An insurance policy which insures you against errors in the title search - essentially guaranteeing your, and your lender's, financial interest in the property

Total Annual Operating Income - total annual income minus operating expenses, but before mortgage payments, tenant improvements and leasing commissions are deducted


Triple - Net Lease: A lease that requires the tenant to pay for property taxes, insurance and maintenance in addition to rent (also called a " Net Net Net Lease")

U.S. Treasury Bill - Treasury Bills, or T-Bills, are short term securities with maturities of one year or less. They are issued by the U.S. Government at a discount from face value and redeemable at maturity for full face value


U.S. Treasury Bond- Treasury Bonds are long-term securities with maturities more than 7 years issued by the U.S. Government. Treasury bonds are coupon bearing securities that pay interest semiannually. U.S. Treasury Bonds are exempt from state and local taxes


U.S. Treasury Note -  are backed by the credit of the U.S. Government and mature in two to ten years. They have a coupon payment every semiannually, and are commonly issued with maturities dates of 2, 5 or 10 years, for denominations from $1,000 to $1,000,000


Unanchored - a tenant in a shopping center, which doesn't have an anchored tenant

Underwriting: The process of deciding whether to make a loan based on credit, property income and expenses, assets and / or other factors


Underwriter: The underwriter is the lender or company who actually provides the funds for your loan. A mortgage broker "brokers" and represents several different underwriters and depending on your situation they choose the "best" underwriter for you and your lender


Upfront Fees: Generally refer to fees charges to pay for third party costs like appraisals


Vacancy Percent - the percent of all units or space that is not rented. On a pro-forma income statement a projected vacancy rate is used to estimate the vacancy allowance, which is deducted from potential gross income to estimate the effective gross income

Vacancy - unoccupied units as a percentage of the total number

Workouts: Attempts to resolve a problematic situation, such as a bad loan. 
Yield: The income return on an investment. This pertains to the interest or dividends received from a security. It is usually calculated annually as a percentage based on the investment's cost, its current market value or its face value


Yield Maintenance:  borrower must pay the lender for the loss of interest that the lender will suffer as a result of a borrower's prepayment of the loan before its scheduled maturity date. Yield maintenance premiums are structured to make investors indifferent to prepayments and to make refinancing unattractive and uneconomical to borrowers. 

Yield To Average Life:. A yield calculation in which bonds are retired routinely during the life of the issue. Because the issuer will buy its own bonds on the open market to satisfy its sinking fund requirement if the bonds are trading below Par, there is, to that extent, automatic price support for such bonds; they therefore tend to trade on a yield - to - average - life basis. 

Yield To Maturity (YTM): the expected or anticipated rate of return on a bond if it is held until the maturity date, assuming all interest is reinvested at that same rate. It is generally the best measure to use to compare bonds, as other common yield figures, such as current yield, don’t take into account the gain or loss realized as a bond approaches par value at maturity. It is implicitly assumed that coupons are reinvested at the YTM rate. YTM can be estimated using a bond value table (also referred as a "bond yield table") or can be determined using an advanced business calculator designed for bond mathematics calculations.