Original face is the par value of a mortgage-backed security (MBS) at the time it is issued. In other words, it tells us the total principal amount originally owed on loans made to buy homes or how much the MBS, the vehicle invested in these mortgages, is initially worth.
Cash and cash equivalents refers to the line item on the balance sheet that reports the value of a company’s assets that are cash or can be converted into cash immediately. Cash equivalents include bank accounts and marketable securities, which are debt securities with maturities of less than 90 days. However, oftentimes cash equivalents do not include equity or stock holdings because they can fluctuate in value.
Variable death benefit refers to the amount paid to a decedent’s beneficiary that is based on the performance of an investment account within a variable universal life insurance policy, a financial product that functions as both insurance and an investment. This variable amount is in addition to a guaranteed death benefit, which is constant.
Original face is the par value of a mortgage-backed security (MBS) at the time it is issued. In other words, it tells us the total principal amount originally owed on loans made to buy homes or how much the MBS, the vehicle invested in these mortgages, is initially worth.
Cash and cash equivalents refers to the line item on the balance sheet that reports the value of a company’s assets that are cash or can be converted into cash immediately. Cash equivalents include bank accounts and marketable securities, which are debt securities with maturities of less than 90 days. However, oftentimes cash equivalents do not include equity or stock holdings because they can fluctuate in value.
An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Dumping is a process where a company exports a product at a price lower than the price it normally charges in its own home market. For protection, many countries impose stiff duties on products they believe are being dumped in their national market, undercutting local businesses and markets.
A no transaction fee mutual fund is a mutual fund with no associated trading fees. No transaction fee mutual funds are typically bought directly from the mutual fund company or through discount brokerage platforms. No transaction fee mutual funds are advantageous to the investor because it allows him or her to purchase the mutual fund without incurring any sales charges on the trade. No transaction fee mutual funds may also be referred to as NTF mutual funds or no load mutual funds.
A home equity loan, also known as an “equity loan,” a home equity installment loan, or a second mortgage, is a type of consumer debt. It allows homeowners to borrow against the equity in their residence. The loan amount is based on the difference between the home’s current market value and the homeowner’s mortgage balance due.
A high ratio loan is a loan whereby the loan value is high relative to the property value being used as collateral. Mortgage loans that have high loan ratios have a loan value that approaches 100% of the value of the property. A high ratio loan might be approved for a borrower who is unable to put down a large down payment.
A judgment lien is a court ruling that gives a creditor the right to take possession of a debtor’s real or personal property if the debtor fails to fulfill his or her contractual obligations. This lien may be made against an individual or business and allows the creditor to access assets such as the debtor’s business, personal property, and real estate to satisfy the judgment.