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Financial Terms | |
FHA prepayment experience |
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Definition of FHA prepayment experienceFHA prepayment experienceThe percentage of loans in a pool of mortgages outstanding at the origination
Related Terms:Lag response of prepaymentsThere is typically a lag of about three months between the time the weighted PrepaymentA payment made in advance of when it is treated as an expense for profit purposes. Prepayment speedAlso called speed, the estimated rate at which mortgagors pay off their loans ahead of PrepaymentsPayments made in excess of scheduled mortgage principal repayments. Zero prepaymentassumption The assumption of payment of scheduled principal and interest with no payments. Direct-Response AdvertisingAdvertising designed to elicit sales to customers who can be LagPayment of a financial obligation later than is expected or required, as in lead and lag. Also, the number ![]() net cost of normal spoilagethe cost of spoiled work less the estimated disposal value of that work normal spoilagespoilage that has been planned or foreseen; is a product cost PrepaymentsPayments made in excess of scheduled mortgage principal repayments. Spoilage, abnormalSpoilage arising from the production process that exceeds the normal Spoilage, normalThe amount of spoilage that naturally arises as part of a production Acceleration ClauseClause causing repayment of a debt, if specified events occur or are not met. Accelerationist HypothesisBelief that an effort to keep unemployment below its natural rate results in an accelerating inflation. Accrued expenses payableexpenses that have to be recorded in order for the financial statements to be accurate. Accrued expenses usually do not involve the receipt of an invoice from the company providing the goods or services. accrued expenses payableThe account that records the short-term, noninterest- ![]() Activity-based budgetingA method of budgeting that develops budgets based on expected activities and cost drivers – see also activity-based costing. activity-based budgeting (ABB)planning approach applying activity drivers to estimate the levels and costs of activities necessary to provide the budgeted quantity and Activity-based costingA method of costing that uses cost pools to accumulate the cost of significant business activities and then assigns the costs from the cost pools to products or services based on cost drivers. activity based costing (ABC)A relatively new method advocated for the activity-based costing (ABC)a process using multiple cost drivers to predict and allocate costs to products and services; Activity-based costing (ABC)A cost allocation system that compiles costs and assigns activity-based management (ABM)a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received AdvanceA payment made by a customer to the company, or by the company to a Advance commitmentA promise to sell an asset before the seller has lined up purchase of the asset. This Advance material requestVery early orders for materials before the completion After-tax profit marginThe ratio of net income to net sales. ![]() Annual fund operating expensesFor investment companies, the management fee and "other expenses," Annual percentage rate (APR)The periodic rate times the number of periods in a year. For example, a 5% annual percentage rate (APR)Interest rate that is annualized using simple interest. Annual percentage yield (APY)The effective, or true, annual rate of return. The APY is the rate actually Annual PremiumYearly amount payable by a client for a policy or component. Annual reportYearly record of a publicly held company's financial condition. It includes a description of the Annual ReportThe report required by the Stock Exchange for all listed companies, containing the company’s financial statements. Annual reportA report issued to a company’s shareholders, creditors, and regulatory annual returnThe fund return, for any 12-month period, including changes in unit value and the reinvestment of distributions, but not taking into account sales, redemption, distribution or other optional charges or income taxes payable by any unitholder that would reduce returns. Annualized gainIf stock X appreciates 1.5% in one month, the annualized gain for that sock over a twelve Annualized holding period returnThe annual rate of return that when compounded t times, would have Arithmetic average (mean) rate of returnArithmetic mean return. Asset-based financingMethods of financing in which lenders and equity investors look principally to the Asset-Based Financingloans granted usually by a financial institution where the asset being financed constitutes the sole security given to the lender. attribute-based costing (ABC II)an extension of activitybased costing using cost-benefit analysis (based on increased customer utility) to choose the product attribute Automatic Benefits PaymentAutomatic payment of moneys derived from a benefit. AverageAn arithmetic mean of selected stocks intended to represent the behavior of the market or some Average accounting returnThe average project earnings after taxes and depreciation divided by the average Average (across-day) measuresAn estimation of price that uses the average or representative price of a Average age of accounts receivableThe weighted-average age of all of the firm's outstanding invoices. Average Amortization PeriodThe average useful life of a company's collective amortizable asset base. Average Collection Periodaverage number of days necessary to receive cash for the sale of Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total Average-Cost Inventory MethodThe inventory cost-flow assumption that assigns the average Average cost of capitalA firm's required payout to the bondholders and to the stockholders expressed as a Average inventoryThe beginning inventory for a period, plus the amount at the end of Average lifeAlso referred to as the weighted-average life (WAL). The average number of years that each Average maturityThe average time to maturity of securities held by a mutual fund. Changes in interest rates Average Propensity to ConsumeRatio of consumption to disposable income. See also marginal propensity to consume. Average Propensity to SaveRatio of saving to disposable income. See also marginal propensity to save. Average rate of return (ARR)The ratio of the average cash inflow to the amount invested. Average tax rateTaxes as a fraction of income; total taxes divided by total taxable income. average tax rateTotal taxes owed divided by total income. Balance of paymentsA statistical compilation formulated by a sovereign nation of all economic transactions Balance of PaymentsThe difference between the demand for and supply of a country's currency on the foreign exchange market. Balance of Payments AccountsA statement of a country's transactions with other countries. Bargain-purchase-price optionGives the lessee the option to purchase the asset at a price below fair market Before-tax profit marginThe ratio of net income before taxes to net sales. Book profitThe cumulative book income plus any gain or loss on disposition of the assets on termination of the SAT. Break-even lease paymentThe lease payment at which a party to a prospective lease is indifferent between Break-even payment rateThe prepayment rate of a MBS coupon that will produce the same CFY as that of Break-even timeRelated: Premium payback period. cash flow from operating activities, or cash flow from profitThis equals the cash inflow from sales during the period minus the cash Cash flow time-lineLine depicting the operating activities and cash flows for a firm over a particular period. Clearing House Automated Payments System (CHAPS)A computerized clearing system for sterling funds Clearing House Interbank Payments System (CHIPS)An international wire transfer system for high-value Closing purchaseA transaction in which the purchaser's intention is to reduce or eliminate a short position in Conflict between bondholders and stockholdersThese two groups may have interests in a corporation that Controllable profitThe profit made by a division after deducting only those expenses that can be controlled by the Cost poolThe costs of (cross-functional) business processes, irrespective of the organizational structure of the business. cost poola collection of monetary amounts incurred either Cost poolA cluster of cost items. Cost–volume–profit analysis (CVP)A method for understanding the relationship between revenue, cost and sales volume. cost-volume-profit (CVP)analysis a procedure that examines CouponThe periodic interest payment made to the bondholders during the life of the bond. CouponDetachable certificate attached to a bond that shows the amount of couponThe interest payments paid to the bondholder. CouponThe annual interest payment associated with a bond. Coupon BondAny bond with a coupon. Contrast with discount bond. Coupon / CouponsThe periodic interest payment(s) made by the issuer of a bond Coupon datesThe dates when the coupons are paid. typically a bond pays Coupon equivalent yieldTrue interest cost expressed on the basis of a 365-day year. Coupon paymentsA bond's interest payments. Coupon rateIn bonds, notes or other fixed income securities, the stated percentage rate of interest, usually Coupon RateThe rate of interest paid on a debt security. Generally stated on an Coupon rateThe nominal interest rate that the issuer promises to pay the coupon rateannual interest payment as a percentage of face value. Cross ratesThe exchange rate between two currencies expressed as the ratio of two foreign exchange rates Current couponA bond selling at or close to par, that is, a bond with a coupon close to the yields currently Current-coupon issuesRelated: Benchmark issues Current Income Tax ExpenseThat portion of the total income tax provision that is based on Current Tax Payment Act of 1943A federal Act requiring employers to withhold income taxes from employee pay. cycle timethe time between the placement of an order to Date of paymentDate dividend checks are mailed. Days' sales outstandingaverage collection period. Deferred Income Tax ExpenseThat portion of the total income tax provision that is the result Delivery versus paymentA transaction in which the buyer's payment for securities is due at the time of Depreciation expenseAn expense account that represents the portion of the cost of an asset that is being charged to expense during the current period. Direct stock-purchase programsThe purchase by investors of securities directly from the issuer. Dollar-weighted rate of returnAlso called the internal rate of return, the interest rate that will make the Dow Jones industrial averageThis is the best known U.S.index of stocks. It contains 30 stocks that trade on Dow Jones Industrial AverageIndex of the investment performance of a portfolio of 30 “blue-chip” stocks. Effective annual interest rateAn annual measure of the time value of money that fully reflects the effects of effective annual interest rateInterest rate that is annualized using compound interest. Effective annual yieldannualized interest rate on a security computed using compound interest techniques. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |