What Is a Single-Disbursement Lump-Sum Payment Plan? A single-disbursement lump-sum payment plan allows a borrower to receive all reverse mortgage proceeds at once when the loan closes. This means that there are no monthly disbursements or other additional proceeds later. The single-disbursement lump-sum payment plan has a fixed interest rate, unlike other reverse mortgage payment
What Is Single Entity Coverage? Single entity coverage is a type of insurance policy that covers all real property in a condominium, including both the common areas shared by all property owners as well as the individual units. Key Takeaways Single entity coverage is an insurance policy that covers both the common areas shared by
What Is Single Interest Insurance? Single interest insurance—also known as vendors single interest insurance or VSI insurance—covers the interests of one of the two parties that co-own a property. This type of insurance typically covers a portion or all of the outstanding value owed to a lender for mortgaged or leased property. Single interest insurance
What Is the Single Market? The European Single Market is an entity created by a trade agreement among participating nations, including all of the members of the European Union (EU) and four non-EU countries that are members of the European Free Trade Association (EFTA). The Single Market created a unified trading territory that functions without
What Is Single Monthly Mortality? Single monthly mortality (SMM) is a measure of the prepayment rate of a mortgage-backed security (MBS). As the term suggests, the single monthly mortality measures prepayment in a given month and is expressed as a percentage. For investors of mortgage-backed securities, prepayment of mortgages is usually undesirable since future interest
What Is a Single-Premium Deferred Annuity? A single-premium deferred annuity (SPDA) is an annuity established with a single payment featuring investment growth solely during the accumulation phase. That growth occurs on a tax-deferred basis until annuitization, at which time regular payments will begin. Single-premium deferred annuities can be either fixed or variable, and distributions are
What Is a Single-Purpose Reverse Mortgage? A single-purpose reverse mortgage is an agreement through which lenders make payments to borrowers in exchange for a portion of the borrower’s home equity. Borrowers must use these payments for a specific purpose approved by the lender. These may be contrasted with proprietary reverse mortgages and home equity conversion
What Is a Single Stock Future? A single stock futures (SSF) contract is a standard futures contract with an individual stock as its underlying security. Each contract typically provides for the delivery of 100 shares of the stock. Unlike the underlying shares, single stock futures do not convey voting rights or dividends. In contrast with
What Is a Sinkable Bond? A sinkable bond is a type of debt that is backed by a fund set aside by the issuer. The issuer reduces the cost of borrowing over time by buying and retiring a portion of the bonds periodically on the open market, drawing upon the fund to pay for the
What Is a Sinker? A sinker is a colloquial term for a bond whose payments, coupon, and principal, are paid by a sinking fund set up by the issuer. Key Takeaways A sinker is a colloquial term for a bond whose payments, coupon and principal, are paid by a sinking fund set up by the
