|REMIC (real estate mortgage investment conduit)|
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: financial advisor, money, inventory control, accounting, finance, inventory, stock trading, payroll,
Definition of REMIC (real estate mortgage investment conduit)
REMIC (real estate mortgage investment conduit)
A pass-through tax entity that can hold mortgages
Money after-tax rate of return minus the inflation rate.
Variations of mortgage instruments such as adjustable-rate and variablerate
a method of allocating joint cost to joint products using a
The use of capital to create more money through the addition of fixed assets or through income producing vehicles.
Refers to various techniques and procedures
Money used to purchase fixed assets for a business, such as land, buildings, or machinery. Also, money invested in a business on the understanding that it will be used to purchase permanent assets rather than to cover day-to-day operating expenses.
mortgage against which no additional debt may be issued.
A security backed by a pool of pass-throughs , structured so that
A loan made on real estate collateral, other than a residential property, in which a mortgage is given to secure payment of principal and interest.
A loan based on the credit of the borrower and on the collateral for the mortgage.
Automatic reinvestment of shareholder dividends in more shares of a
Through equity investment, investors gain part ownership of the corporation. The primary type of equity investment is corporate stock.
An insurance program designed to provide funds for insured's dependents upon death of the insured, and to also conserve, as much as possible, the personal assets that the insured wants to bequeath to heirs.
The nominal exchange rate corrected for price level differences.
The return one can expect to earn on an investment. See: capital asset
Foreign direct investment (FDI)
The acquisition abroad of physical assets such as plant and equipment, with
Freddie Mac (Federal Home Loan Mortgage Corporation)
A Congressionally chartered corporation that
Future investment opportunities
The options to identify additional, more valuable investment opportunities
GEMs (growing-equity mortgages)
mortgages in which annual increases in monthly payments are used to
GMCs (guaranteed mortgage certificates)
First issued by Freddie Mac in 1975, GMCs, like PCs, represent
Government National Mortgage Association (Ginnie Mae)
A wholly owned U.S. government corporation
Graduated-payment mortgages (GPMs)
A type of stepped-payment loan in which the borrower's payments
guaranteed investment certificate (GIC)
A GIC is an investment that gives you a guaranteed rate of return over a fixed period of time, usually between 30 days and 5 years. GICs are available from banks, trust companies, and other financial institutions.
Guaranteed investment contract (GIC)
A pure investment product in which a life company agrees, for a
An insured mortgage protects only the mortgage lender in case you do not make your mortgage payments. This coverage is provided by CMHC [Canada mortgage and Housing Corporation] and is required if a person has a high-ratio mortgage. [A mortgage is high-ratio if the amount borrowed is more than 75% of the purchase price or appraised value, whichever is less.]
Interest Rate, Real
Nominal interest rate less expected inflation.
This means dying without a will, in which case the provincial laws of the province in which the death occurred apply to the manner in which assets will be distributed. In other words, if you don't write your own will, the government will do it for you after your death and it may not be as you would have wished.
The commitment of funds (capital) in anticipation of an increased
Related: financial analysts
Financial intermediaries who perform a variety of services, including aiding in the sale of
Middleman between a corporation issuing new securities and the public. The middleman buys the securities issue outright and then resells it to customers. Also called an underwriter.
a responsibility center in which the manager
A division or unit of an organization that is responsible for achieving an adequate return on
a judgment about which assets will be
Decisions concerning the asset side of a firm's balance sheet, such as the decision to
Bonds rated Baa or above by Moody’s or BBB or above by Standard & Poor’s.
Investment grade bonds
A bond that is assigned a rating in the top four categories by commercial credit
The revenue from a portfolio of invested assets.
Also called a portfolio manager and money manager, the individual who manages a
Investment product line (IPML)
The line of required returns for investment projects as a function of beta
Expenditures on capital goods including new housing. Financial ''investments" and sales of existing assets are not included.
Investment tax credit
Proportion of new capital investment that can be used to reduce a company's tax bill
Investment Tax Credit
A reduction in taxes offered to firms to induce them to increase investment spending.
A closed-end fund regulated by the investment Company Act of 1940. These funds have a
As a discipline, the study of financial securities, such as stocks and bonds, from the investor's
investments that a regulated entity is permitted to make under the rules and regulations
A loan secured by the collateral of some specified real estate property which obliges the borrower
Debt instrument by which the borrower (mortgagor) gives the lender (mortgagee) a lien on property as security for the repayment of a loan.
Securities backed by a pool of mortgage loans.
Mortgage-Backed Securities Clearing Corporation
A wholly owned subsidiary of the Midwest Stock
A bond in which the issuer has granted the bondholders a lien against the pledged assets.
Mortgage (Credit Insurance)
An agreement between a creditor and a borrower, where the creditor has loaned an amount to the borrower for purposes of purchasing a loan secured by a home.
A modification of standard duration to account for the impact on duration of MBSs of
Commonly sold in the form of reducing term life insurance by lending institutions, this is life insurance with a death benefit reducing to zero over a specific period of time, usually 20 to 25 years. In most instances, the cost of coverage remains level, while the death benefit continues to decline. Re-stated, the cost of this kind of insurance is actually increasing since less death benefit is paid as the outstanding mortgage balance decreases while the cost remains the same. Lending institutions are the most popular sources for this kind of coverage because it is usually sold during the purchase of a new mortgage. The untrained institution mortgage sales person often gives the impression that this is the only place mortgage insurance can be purchased but it is more efficiently purchased at a lower cost and with more flexibility, directly from traditional life insurance companies. No matter where it is purchased, the reducing term insurance death benefit reduces over a set period of years. Most consumers are up-sizing their residences, not down-sizing, so it is likely that more coverage is required as years pass, rather than less coverage.
Mortgage Life insurance (Credit Insurance)
Decreasing term life insurance that provides a death benefit amount corresponding to the decreasing amount owed on a mortgage.
Mortgage pass-through security
Also called a passthrough, a security created when one or more mortgage
The period from the taking of applications from prospective mortgage borrowers to the
The risk associated with taking applications from prospective mortgage borrowers
The interest rate on a mortgage loan.
The lender of a loan secured by property.
The borrower of a loan secured by property.
Mutually exclusive investment decisions
investment decisions in which the acceptance of a project
Gross, or total, investment minus depreciation.
investment spending minus depreciation.
Net present value of future investments
The present value of the total sum of NPVs expected to result from
Net Realizable Value
Selling price of an asset less expenses of bringing the asset into a saleable state and expenses of the sale.
net realizable value approach
a method of accounting for by-products or scrap that requires that the net realizable value of these products be treated as a reduction in the cost of the primary products; primary product cost may be reduced by decreasing either
net realizable value at split-off allocation
a method of allocating joint cost to joint products that uses, as the proration base, sales value at split-off minus all costs necessary
Net realizeable value
The expected revenue to be gained from the sale of an item or
mortgage against which additional debts may be issued. Related: closed-end mortgage.
Passive investment management
Buying a well-diversified portfolio to represent a broad-based market
Passive investment strategy
See: passive management.
the process of gathering information
qualified investments (Canada)
Qualified investments is the term used for investments that can be held in an RSP. These investments generally include:
RAMs (Reverse-annuity mortgages)
mortgages in which the bank makes a loan for an amount equal to a
Measured in base year, or constant, dollars. Contrast with nominal.
Real Actions (Earnings) Management
Involves operational steps and not simply acceleration
Identifiable assets, such as buildings, equipment, patents, and trademarks, as distinguished from a
Assets used to produce goods and services.
Real Business Cycle Theory
Belief that business cycles arise from real shocks to the economy, such as technology advances and natural resource discoveries, and have little to do with monetary policy.
Wealth that can be represented in financial terms, such as savings account balances, financial
Real cash flow
A cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash
Real Exchange Rate
Exchange rate adjusted for relative price levels.
Real exchange rates
Exchange rates that have been adjusted for the inflation differential between two countries.
GDP expressed in base-year dollars, calculated by dividing nominal GDP by a price index.
Income expressed in base-year dollars, calculated by dividing nominal income by a price index.
Real interest rate
The rate of interest excluding the effect of inflation; that is, the rate that is earned in terms
Real Interest Rate
The rate of interest paid on an investment adjusted for inflation
real interest rate
Rate at which the purchasing power of an investment increases.
The bid and offer prices at which a dealer could do "size." Quotes in the brokers market may
real microprofit center
a center whose output has a market value
Real Money Supply
Money supply expressed in base-year dollars, calculated by dividing the money supply by a price index.
Options embedded in real assets.
Real Rate of Interest
See interest rate, real.
A real time stock or bond quote is one that states a security's most recent offer to sell or bid (buy).
real value of $1
Purchasing power–adjusted value of a dollar.
Wage expressed in base-year dollars, calculated by dividing the money wage by a price index.
Realizable Revenue A revenue transaction where assets received in exchange for goods and
services are readily convertible into known amounts of cash or claims to cash.
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.