Yield Spread Premium | Dodd-Frank Wall Street Reform Act

Yield Spread Premium The term 'Yield Spread Premium' is derived from the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (USA). Yield Spread Premium is a fee or commission paid by a lender to a mortgage loan originator (mortgage broker or retail bank) in exchange for a commitment by a borrower to pay a higher interest rate. A similar fee may be paid by a lender to induce a broker to introduce a borrower to a particular program, such as a loan for a term or rate that is more … [Read more...]

Appraisal Management Company | Dodd-Frank Wall Street Reform

Appraisal Management Company (AMC) An individual or business entity that performs appraisal management services, i.e. a person or entity that for a fee maintains and administers a list of appraisers and fulfills requests for appraisal services using the services of those appraisers An AMC selects and appoints the firm that will carry out valuation-related services, usually for a regulated institution, such as a bank or insurance company. “The term ‘appraisal management company’ means, in … [Read more...]

Risk Retention | Dodd-Frank Wall Street Reform Act

risk retention(US) The retention of a part of a risk, usually by ‘self-insurance’, of all or part of a potential business loss. As a rule, risk retention represents a contingent liability against which a company should set aside a reserve fund. In particular, a requirement of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. A “securitizer” of an asset-backed security (ABS) continues to accept part of the credit risk of any loss that might occur during the life of the … [Read more...]

Methods of Valuation | Property Valuation

methods of valuation/property valuation The methods of valuation are numereous. The method of valuation is the act or process of determining the value or worth of something. An assessment of the market value of a property, at a given point in time. The provision of a written opinion as to the value of an interest in property. A valuation is normally accompanied by associated information, assumptions or qualifications. However, it may simply provide the opinion, without anything further. … [Read more...]

Clog Equity of Redemption | Fetter on Mortgage Redemption

clog equity of redemption A fetter, restriction or impediment, especially such an impediment on the mortgagor’s equity of redemption. A stipulation or provision in a mortgage deed that prevents the mortgagor from recovering his property unencumbered, after repayment of all the monies due to the mortgagee or performance of all the obligations for which the property was given as security. A clog on the equity of redemption may arise, for example, “where the mortgagee will suddenly bestow … [Read more...]

Subject to Contract | Conditional Contract

Subject to Contract (STC) Words used, primarily in English law to indicate that something set down in writing is not intended to commit the writer until a binding and concise form of contract is entered into. “The matter remains in negotiation until a formal contract is settled and formal contracts are exchanged”, Keppel v Wheeler [1927] 1 KB 577, 584 (CA) (Winn v Bull (1877) 7 Ch D 29; Law v Jones [1974] Ch 112, [1973] 2 All ER 437 (CA); Eccles v Bryant and Pollock [1947] 2 All ER 865, … [Read more...]

Deferment Rate Leasehold Enfranchisement | Ground Rent Valuation

deferment rate leasehold enfranchisement Generally a 'deferment rate' may be defined as "the rate of return that is used to defer or ‘discount’ a future value to arrive at the present value". For example, if a property is estimated to have a capital value (at today’s prices) of £1,000,000 in five years, then its present value may be assessed as £1,000,000 × {1/[(1 + 0.08)5]} = £567,400, where 0.08 or 8% is the deferment rate, i.e. the price is ‘adjusted’ or ‘deferred’ at a compound rate 8% per … [Read more...]

Option Agreement and Conditional Contract | What is the difference?

Option Agreement and Conditional Contract, Defined And Distinguished An option is a choice available to one party, a conditional contract depends on an external event. An option is a  right to do or not to do something, such as a right to accept or reject an offer within a specified or reasonable period of time. An option provides a right, but not an obligation, to carry out a specific action upon agreed terms, usually a right to buy at a given (or determinable) price within an agreed period … [Read more...]

Highway Carriageway Driftway | compare these Rights of Way

Rights of Way - Highway Carriageway Driftway A way or passage on land, made or unmade, over which the public at large has a right to pass and repass for legal purposes. “The word ‘highway’ is of Saxon derivation [heghewei], meaning a right of use for passengers whether public or private. A highway is a "generic name for all kinds of ways which are common to all people having occasion to pass over them", Safeway Trails, Inc. v. Furman, 76 NJ Super 90, 183 A.2d 788, 793 (1962). A right of way or … [Read more...]

Right to Manage Leasehold Property | Leasehold Reform

right to manage leasehold property A right available to “qualifying tenants” to acquire and exercise the right to manage two or more flats within a self-contained building or part of a building that is self-contained (Commonhold and Leasehold Reform Act 2002, Part 2, Chapter 1). A self-contained building is one that is structurally detached. A self-contained part of a building must be a vertical division of the building, The structure of the building must be capable of redevelopment … [Read more...]