D


Glossary



Debt

Liability on a claim



Debt consolidation

A single loan to pay off multiple debts, usually over a longer term. This is a popular use for a home equity line of credit.



Debt-to-income ratio

Your total monthly debt payments (for example: loans, credit cards and court-ordered payments) divided by your gross monthly income before taxes and expressed as a percentage. Federal Housing Administration (FHA) guidelines layer in early 2017 recommend that your monthly mortgage payment should be no greater than 31% of your monthly income before taxes and your total monthly debt should be no greater than 43% of your monthly income before taxes.



Deed (warranty or quit-claim)

A document that legally transfers ownership of real estate from a seller to a buyer and delivered to the buyer at closing. Before making a loan, a lender will usually require a title search or a title report to make sure the borrower legally owns the real estate tthat is being used to secure the loan.



Deed in Lieu of Foreclosure

Deed in which the mortgagor conveys all interest in the property to the Mortgagee to satisfy a loan that is in default to avoid foreclosure proceedings. A written settlement agreement will always accompany deed in Lieu. The lender waives the right to collect any deficiency based on a promissory note.



Deed of trust

The document used in some states instead of a mortgage; title is vested in a trustee to secure repayment of the loan.



Default

Failure to make mortgage payments on time or to meet other terms of a loan. Default can lead to foreclosure.



Delinquency

Failure to make payments on time.



Department of Veterans Affairs (VA)

The Cabinet level department of the Federal Government responsible for operating programs tht benefit veterans of Military Service and their families. It is Headed by the Secretary of veterans Affairs.



Discount points

A Fee equal to one percent of the loan amount tht is prepaid interest on the Mortgage loan. The more points, the lower the interest rate. Borrowers can typically pay from zero to four points. It is also tax deductible.



Down payment

The amount of cash you pay toward the purchase of your home to make up the difference between the purchase price and your mortgage loan. Down payments often range between 5% and 20% of the sales price depending on many factors, including your loan, your lender and your credit history.



Draw

The process of obtaining an advance against your available line of credit.



Draw period

The period during which a borrower can obtain advances (also called draws) from an available line of credit. At the end of the draw period, borrowers may be able to renew the credit line or be required to pay the outstanding balance in full or in monthly installments.



Due-on-sale provision

A provision in a mortgage home loan that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the loan.



Deferred annuity

A deferred annuity lets you potentially grow your assets so they could provide a steady stream of income during retirement. When you purchase the annuity, you deposit money into it over a period of time. That money is invested. At a certain point, usually at retirement, you start receiving payments from the annuity. These payments can be made in a lump sum or in installments.



Deflation

The opposite of inflation, deflation is a decline in the prices of goods and services.



Depreciation

A decrease in the value of an investment.



Designated investment alternative

Your plan’s investment options.




Distribution

Money you take from your financial account, such as an IRA. Also called a withdrawal.



Diversification

The practice of investing in multiple asset classes and securities with different risk characteristics.



Dividend

Money an investment fund or company pays to its stockholders, typically from profits. The amount is usually expressed on a per-share basis.



Dow Jones (DJ) Global Select Real Estate Securities IndexSM

An unmanaged index that measures the performance of publicly traded securities of globally traded real estate operating companies (REOCs) and real estate investment trusts (REITs).



Dow Jones Industrial Average (DJIA)

The Dow is a widely-followed price-weighted index of 30 of the largest, most widely-held U.S. stocks.



Dodd-Frank Wallstreet Reform and Consumer Protection Act

A 2010 Federal statute that promotes the financial stability of the United States by improving accountability and transparency in the financial system. Statute affects nearly every federal agency and jurisdiction over finance or consumer protection, and nearly every segment of the financial services industry.



Duration

An estimate of bond price sensitivity to changes in interest rates. The higher the duration, the greater the change (higher risk) in relation to interest-rate movements.




Acronyms



DTI
(Debt to income)
two ratios, front end and the back end. DTI from end (housing expensive) is determined by dividing the amount of housing by the borrowers gross income.(Examples of debts :credit cards,car loans,student loans. Not included: cell phone ills and utilities)




DFA
Dodd-Frank Wall Street Reform and Consumer Protection Act



DU/ DO
desktop underwriter and desktop originator. States Fannie Mae AUS



Delinquency
a mortgage payment that is more than 30 days late



DBA
doing business As



DU
(desktop underwriter): The AUS used by Fannie Mae)



HUD
department of housing and urban development



DBE
disadvantaged business enterprise



DE
direct emdorsement


DTC
Direct to consumer



DIL
Deed in Lieu


DOT
Deed of Trust



DTA
Deferred Tax Assets



DTI
Debt to income ratio