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Glossary


Hazard insurance
Insurance that protects property owners against damage caused by fires, severe storms, earthquakes, or other natural events. If the specific event is covered within the policy, the property owner will receive compensation to cover the cost of any damage incurred. See Hazard Insurance in detail



Home Equity Loan

A line of bank credit given to a homeowner, using the homeowner's equity in the home as collateral.


Home Inspection

A non-invasive visual examination of a residential dwelling, performed for a fee, which is designed to identify observed material defects within specific components of said dwelling.


Home equity line of credit (HELOC)

A line of credit secured by the borrower's residence. The typical HELOC term is 30 years: a 10-year draw period followed by a 20-year repayment period. A HELOC is often used for home improvements, debt consolidation or other major expenses. In most cases, you can withdraw funds up to your available credit limit for the first 10 years (your draw period) using convenience checks, debit cards or money transfer via Online Banking.


Homeowners insurance

Insurance to protect your home against damage from fire, hurricanes and other catastrophes. Usually, homeowners insurance also covers you against theft and vandalism, as well as personal liability in case someone is hurt or injured on your property. A lender will likely require you to name it as a payee under the insurance if you need to make a claim. Also called hazard insurance. See Hazard and Homeowners Insurance in detail



Homeowner's Warranty (HOW)

A warranty and Insurance Program that, among other coverage, insures a new home for ten years against major structural defects. The program was developed by the Home Owners Warranty Corporation, a subsidiary of the National Association of Home Builders. Builders often provide this type of coverage, and many states provide similar warranty protection by statute.



Home Mortgage Disclosure Act of 1975 (HMDA / Regulation C)

This Regulation provides the public loan data that can be used to assist in determining whether financial institutions are serving the housing needs of their communities, public officials in distributing public-sector investments to attract private investment to areas where where it is needed, and in identifying possible discriminatory lending patterns. The Regulation applies to certain financial institutions, including banks, savings associations, credit unions, and other mortgage lending institutions. 



Home Ownership and Equity Protection Act (HOEPA) 1994

HOEPA was enacted in 1994 as an amendment to the Truth-In-Lending Act (TILA) to address abusive practices in refinances and closed end home equity loans with high interest rates or high fees.



Housing and Urban Development (HUD)

An acronym for the U.S. Department of Housing and Urban Development. HUD is a government agency responsible for the implementation and administration of housing and urban development programs. Among other things, HUD administers the Federal Housing Administration, enforces RESPA regulations and oversees Fannie Mae and Freddie Mac.


Housing Code

A Law or Regulation setting standards for the construction, maintenance, occupancy, use, or appearance of buildings and dwelling units.




Housing Expenses-to-Income Ratio

A ratio comparing housing expenses to before-tax income that is used by lenders to qualify borrowers for a mortgage. The Housing expense measure includes mortgage principal, interest payments, property taxes, Hazard Insurance, Mortgage Insurance, and association fees. The limit for housing is generally 28 percent of the expense-to-income ratio.



HUD-1 Settlement Statement

Standard form which is used to itemize services and fees charged to the borrower by the lender or broker when applying for a loan for the purpose of purchasing or refinancing real estate.



Hybrid Loan

It performs like a fixed and adjustable rate loan. It has a fixed rate for an initial period before turning into an Adjustable Rate Mortgage (ARM). These initial periods are offered in 3,5,7 and 10 year terms.







Acronyms



HAMP
Home Affordable Modification Program



HARP
(Home affordable refinance programme) HARP is a refinance programme which allows eligible borrowers, with little to no equity through their homes, to take advantage of low interest rates and other refinancing benefits



HECM
(Home equity conversion mortgage) loan for borrowers 62 years and older. uses the equity in their home to create cash disbursrtments to the borrower



HELOC
(Home equity line of credit) HELOC is a loan in which the lender agrees to lend a maximum amount within an agreed loan term, where the collateral is the borrowers equity in his or her house



HMDA
(Home mortgage disclosure Act) required lenders to report their lending patterns geographically to prevent redlining and reverse redlining



HFC
Held for Sale



HFI
Held for Investment



HOA
home owners association



HOC
Homeownership Center



HIPA
Homeowners Information Protection Act



HOEPA
(Home ownership abd equity protection Act) regulates high cost home loans



HOI
Home Owners Insurance


HPA
(Home owners protection Act)
regulates the cancellation of private mortgage insurance



HPML
(High priced mortgage loan)



HUD
(U.S department of housing in urban development) HUD is the primary housing in lending regulatory authority in the U.S



HUD 1
Loan Settlement Statement
The Standardized form a borrower receives at closing, detailing all funds paid at closing in a real estate transaction. This includes RE Commissions, Loan Fees, Points, Taxes, Initial Escrow amounts, and other parties receiving distributions.



HUD 1a
Loan Settlement statement for a refinance transaction.




HVCC
Home valuation code of conduct
A Rule effective May 1st, 2009, which states that Fannie May and Freddie Mac are prohibiting lenders from working directly with appraisers. Instead lenders must arrange appraisals through third party management companies.



HVCRE
High Value Credit Risk Estimate



HW
Housing Wire Magazine