T



Glossary



Tax Lien
A lien on a property and all rights to the property, imposed by the federal government for unpaid federal taxes. Also refers to a lien on real estate in favour of a state or local government that may be for closed for non payments of taxes. Most states have adopted the Uniform Federal Tax Lien Registration Act.



Tax Sale
A sale of property due to non payments of taxes

Term

The number of years it will take to pay off a loan. The loan term is used to determine the payment amount, repayment schedule and total interest paid over the life of the loan.



Termite Inspection

The examination of a structure by a qualified person to determine the possible existence of an infestation of termites.




Third-party fees

Fees charged for services rendered by parties other than the borrower or the lender. Such fees may include appraisal, credit report, title and flood certifications.




Third-party Origination

Origination from a third party where a person is involved in the process of making mortgages and gathering borrower information for a mortgage application, which is then transferred or sold to the actual mortgage lender.


Title

Written evidence of ownership in property.



Title company

The agency that will investigate a property’s title (or deed) for discrepancies or undiscovered liens and that will issue title insurance to the lender after the title is deemed clear.



Title insurance

Insurance that protects an interested party, either the owner or the lender, against issues that would affect legal ownership of the property.


Title search

An examination of records used to determine the legal ownership of property and all liens and encumbrances on it. Usually performed by a title company or attorney.



Total expense ratio

See: Debt-to-income ratio



Transaction fee

The fee that may be charged each time you draw on your credit line.



Treasury index

An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM) plans. It is based on the results of auctions that the U.S. Treasury holds for its Treasury bills and securities or is derived from the U.S. Treasury’s daily yield curve, which is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market. See also: Prime rate




Trade Equity

Equity that results from a buyer giving an existing property as trade for all or part of the down payment on the subject property.



Transfer Tax
Imposed on the transfer of property, especially by will, inheritance or gifts.



Trustee

A fiduciary that holds or controls property for the benefit of another.


Truth in Lending Act

A federal law requiring disclosure of credit terms using a standard format. This is intended to facilitate comparisons between the lending terms of different financial institutions. Read about the Truth in Lending Act on the Dept. of the Treasury website


Target date fund

A fund designed to provide varying degrees of long-term appreciation and capital preservation based on your age or target retirement date. As you get older or closer to retirement, a lifecycle fund’s mix of asset classes becomes less focused on growth and more focused on income. Also known as a lifecycle fund.



Target risk fund

A fund that maintains a predetermined asset mix and generally uses words such as “conservative,” “moderate” or “aggressive” in its name to indicate the fund’s risk level. Also known as a lifestyle fund.



Ticker symbol

An abbreviation using letters and numbers assigned to securities and indexes to identify them.



Time horizon

The amount of time you expect to hold an investment before taking money out.



Total annual operating expenses

A measure of what it costs to operate an investment. These expenses are typically expressed as a percentage of an investment’s assets, a dollar amount or in basis points. You pay these costs through a reduction in the investment’s rate of return. See expense ratio and operating expenses.



Transaction-based expenses

Fees based on the execution of a particular plan service or transaction.



Trustee

A person or entity, such as a bank, trust company or other organization, that is responsible for the holding and safekeeping of trust assets. The trustee may have other duties, such as investment management. A trustee serving as a “directed trustee” is responsible for the safekeeping of trust assets, but has no discretionary investment management duties or authority over the assets.



Treasury Index

An index based on the auctions of U.S. Treasury bills or on the U.S. Treasuries daily yield curve, which is used in determining mortgage rates for mortgages with an unfixed component.



Total Expense Ratio

A measure of the total costs associated with managing and operating and investment fund. These costs consist primarily of management fees and additional expenses such as trading fees, legal fees, auditor fees and other operational expenses. The total cost of the fund is divided by the funds total assets to arrive at a percentage amount.





Acronyms



T-Bill
Treasury Bill



TCR
Transaction Coverage Rate



TDR
Troubled Debt Restructuring



TILA
Truth-in-Lending-Act



TLC
Tighten lenders Corp



TPO
Third Party Organization



TIL
(TRUTH IN LENDING) TIL is an important document you will receive from the lender or bank within 3 days of your application. Within this document certain disclosures are set forth.
Such as finance charges, annual percentage rate (APR), ammount financed, total of payments. and total sales price will be disclosed



TIN
(tax indentification number)



TLTV
(Total loan to value is calculated by dividing the sum of the 1st lien mortgage amount of a HELOC or 2nd lien by either the properties purchase price or appraised value (whichever is less)




TRID
(TITLA -RESPA Integrated Disclosure Rule): New legislation as of October 2015, requires the loan estimate and closing disclosure, replaces the GFE, TIL and HUD-1 disclosures.