What Is a Mortality and Expense Risk Charge? A mortality and expense risk charge is a fee imposed on investors in annuities and other products offered by insurance companies. It compensates the insurer for any losses that it might suffer as a result of unexpected events, including the death of the annuity holder. The amount of
What Is a Mortality Table? A mortality table, also known as a life table or actuarial table, shows the rate of deaths occurring in a defined population during a selected time interval, or survival rates from birth to death. A mortality table typically shows the general probability of a person’s death before their next birthday
What Is a Mortgage? A mortgage is a type of loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments that are divided into principal and interest. The property then serves as collateral to
What Are Mortgage Allocations? Mortgage allocations are a step in the settlement of to-be-announced mortgage-backed securities (MBS) that are traded in the secondary market. At assignment, the seller provides the buyer with the precise details of the loans that make up the underlying pool of the MBS. Key Takeaways Mortgage allocation refers to a step in
What is a Mortgage Bond? A mortgage bond is secured by a mortgage, or a pool of mortgages, that are typically backed by real estate holdings and real property, such as equipment. Key Takeaways A mortgage bond is a bond backed by real estate holdings or real property.In the event of a default situation, mortgage
What Is a Mortgage Equity Withdrawal A mortgage equity withdrawal is a piece of economic data measuring the net amount of cash equity that consumers withdraw from their homes through home equity loans or lines of credit and cash-out refinances. Mortgage equity withdrawals are a relevant economic indicator in the prediction of consumer spending and
What Is a Mortgage Originator? A mortgage originator is an institution or individual that works with a borrower to complete a a home loan transaction. A mortgage originator is the original mortgage lender and can be either a mortgage broker or a mortgage banker. Mortgage originators are part of the primary mortgage market and must work
What Is a Mortgage Par Rate? A mortgage par rate is the standard interest rate calculated by an underwriter and assigned to a borrower for a specific lending product. A mortgage par rate is the interest rate a lender will charge a borrower without adjustments for lender credits or discount points. If the lender adjusts
What Is a Mortgage Pipeline? A mortgage pipeline refers to mortgage loans that are locked in with a mortgage originator by borrowers, mortgage brokers, or other lenders. A loan stays in an originator’s pipeline from the time it is locked until it falls out, is sold into the secondary mortgage market, or is put into
What Is a Mortgage Rate Lock Float Down? The term mortgage rate lock float down refers to a financing option that locks in the interest rate on a mortgage with the option to reduce it if market rates fall during the lock period. A typical rate lock provides a borrower with security against an increase
