We hope this Glossary of Mortgage and Real Estate Terms helps you understand the home buying and financing process. Should you have any further questions, please do not hesitate to contact your Loan Officer for answers.

# A B C D E F G H I J K L M N O P Q R S T U V W XYZ

R Terms

RAM: See Reverse Annuity Mortgage.

 

Rate and Term Refinance: The borrower replaces a mortgage loan on the subject property with another mortgage loan for the purpose of getting a better interest rate and loan term without any cash-out.

 

Real Estate Mortgage Investment Conduit: The mortgage offspring of tax legislation that simplifies tax and legal considerations when issuing multi-class, mortgage-backed securities.

 

Real-Estate Owned (REO): A term used by lending institutions that refers to ownership of real property acquired for investment or as a result of foreclosure.

 

Real Estate Settlement Procedures Act: Federal legislation designed to help home buyers compare settlement costs among lenders and to eliminate kickbacks.

 

Real Property: Land and anything permanently affixed to the land, such as fences, buildings and those things attached to the buildings, such as light fixtures or plumbing. May refer to rights in real property as well as the property itself.

 

Realtor ©: Anyone who is licensed to both buy and sell real estate in an area and who is an active member in the local real estate board affiliated with the National Association of Realtors.

 

Recasting: An adjustment to the current mortgage - a loan modification - that does not involve the issuance of a new mortgage guaranty insurance certificate. With a recast loan, a modification may be made in the type of instrument involved. In whatever form a recast loan takes, the major benefit to the borrower is the potential for substantially reduced mortgage payments.

 

Receiver: A court-appointed person who holds a property, and any income from it, pending a court-ordered final resolution of the legal dispute.

 

Recourse Loan: A type of loan in which a lender can hold the borrower personally liable if the borrower fails to meet all the requirements of the mortgage.  Most mortgages are recourse loans.  Reverse Mortgages are non-recourse loans.

 

Redemption Period:  The time period in a foreclosure in which a borrower in default cannot be divested of legal title or evicted, and can exercise the right to redeem the property by paying the debt in full.

 

Refinance: 1) The payment of a debt from the proceeds of a new loan, using the same property as security.

 

Regular Periodic Payment: Payments recurring at fixed times,

 

Regulation X: Federal regulation implemented by the Secretary of Housing and Urban Development (HUD) to implement Real Estate Settlement Procedures Act of 1974 (RESPA).

 

Regulation Z: Federal regulation implemented by the Federal Reserve Board to carry out the purposes of the Truth-in-Lending Act.

 

Rehabilitation: The restoration of a property to good use through repair, or improvements of public facilities of a declining area or neighborhood.

 

Reinstatement: Occurs when a borrower cures a mortgage default. A mortgage is reinstated if it is brought up to date by paying all charges that had become overdue.

 

Re-insurer: An insurance company that covers all or part of a loss for primary insurers.

 

REMIC: See Real Estate Mortgage Investment Conduit.

 

Renegotiable-Rate Mortgage: A type of adjustable-rate mortgage (ARM). The interest rate and terms of the mortgage are completely renegotiated at regular intervals and at the lender's discretion, unlike other ARMs where fluctuations in interest are controlled by a agreed formula..

 

REO: See Real-Estate Owned.

 

Reproduction Cost: An estimate of how much it would cost to construct a similar home with equal utility.

 

Rescind: To avoid or cancel in such a way as to treat the contract or other object of the rescission as if it never existed.

 

RESPA: See Real Estate Settlement Procedures Act.

 

Restraining Order: A prohibitive writ, issued by a court that forbids a party or a party's agents to do some act which is threatened or attempted.

 

Reverse Mortgage: A Reverse Mortgage is a special loan designed for Seniors, aged 62 and older, that allows eligible homeowners to borrow money without having to make any payments until they sell or pass the home onto their estate. With a Reverse Mortgage, the Bank pays the borrower, versus the borrower paying the Bank. There are three main Reverse Mortgage programs: the government insured HECM program, the government sponsored Home Keeper program, and the government regulated Cash Account program.

 

Review Underwriter: Usually an underwriter from the mortgage insurer or mortgage investor. The review underwriter takes a less comprehensive look at the loan package and relies more on the findings of the primary underwriter.

 

Roll-Over-Mortgage: A type of adjustable-rate mortgage (ARM). With a roll-over mortgage, the interest rate and payment terms can be renegotiated, usually every five years.

 

Run with the Land: An expression that indicates a right or restriction that will affect all current owners and future owners.