The person who approves or denies a home loan, based on the lender’s underwriting and approval criteria.

Underwriting

The lender’s process of deciding whether to make a loan to a potential borrower based on credit, employment, assets and other factors, and the matching of this risk to an appropriate rate, term and loan amount.

Uniform Residential Loan Application (1003)

The standard loan application form published by the Federal National Mortgage Association (Fannie Mae) and used by most lenders.

Unsecured lines of credit

Typically used when referring to a loan or a line of credit (unsecured loan, unsecured line of credit) that is not backed by collateral.

Unsecured loan

Typically used when referring to a loan or a line of credit (unsecured loan, unsecured line of credit) that is not backed by collateral.

Upfront costs

The costs you must pay when applying for a loan. Typically these include loan application fees. Some lenders require some of your closing costs also be paid when you apply.

U.S. Treasury securities

Debt securities issued by the United States government and secured by its full faith and credits. U.S. Treasury securities are the debt-financing instruments of the U.S. government. Often referred to as treasuries.

Usury

The charging of an illegal rate of interest as a condition to lending money.

Unit

A representation of ownership in an investment that doesn’t issue shares. Most collective investment funds are divided into units instead of shares. See share.

Unit class

Investment funds divided into units, instead of shares. Collective investment funds and other funds may offer more than one type or group of units, each of which is considered a class, such as “Class A”. For most investment funds, each class has different fees and expenses, but all of the classes invest in the same pool of securities and share the same investment objectives.

Unit value

The dollar value of each unit on a given date.

Unitholder

An owner of units in an investment. See shareholder.