Mortgage Glossary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y ZO
Indication by a potential buyer of a willingness to purchase a home at a specific price; generally put forth in writing.
Office of Thrift Supervision (OTS)
A bureau of the Treasury Department that was authorized by Congress in the Financial Institutions Reform, Recovery and Enforcement Act of 1989, to charter, regulate, examine and supervise savings institutions.
Offsite Improvements
Improvements in land development that are off the development site, such as utility lines, sidewalks, gutters and curbs, that enhance the value of the development.
On Account
Describes the application of a payment to reduce the outstanding principal of a loan.
Onsite Improvements
Any construction of buildings or other improvements within the boundaries of a property that increases the value of the property.
Open Mortgage
A mortgage loan that can be paid off, without penalty, at any time prior to maturity.
Open-End Credit
A consumer line of credit that may be used repeatedly up to an established overall limit. Commonly known as revolving credit or a charge account, in which the customer may pay in full or in installments that include a finance charge. The term does not include negotiated advances under an open-end real estate mortgage or a letter of credit.
Open-End Lease
A lease that requires a balloon payment based on the value of the leased property when the lease expires.
Open-End Mortgage Clause
A provision in mortgage contracts in some states, that declares the mortgaged real estate may be used as security for future additional advances from the original lender, if the lender and borrower agree. All subsequent advances under this clause represent a claim on the property dating back to the time of recording the original mortgage.
Original Face
The face value or original principal amount of a security on its issue date.
Original Principal Balance
The total principle owing on a mortgage before regular payments commence.
Original-Issue Discount
The amount by which a security's price at issuance is lower than its par value.
Origination
The process of preparing, submitting, and evaluating a loan application; generally includes a credit check, verification of employment, and a property appraisal.
Origination Fee
The charge for originating a loan; is usually calculated in the form of points and paid at closing.
OTS (Office of Thrift Supervision)
A bureau of the Treasury Department that was authorized by Congress in the Financial Institutions Reform, Recovery and Enforcement Act of 1989, to charter, regulate, examine and supervise savings institutions.
Overages
The difference between the lowest available price and any higher price that the home buyer agrees to pay for the loan. Loan officers and brokers are often allowed to keep some or all of this difference as extra compensation.
Owner Financing
A property purchase for which the seller provides at least part of the financing.
Owners' Title Policy
A policy that protects a buyer from any future title disputes.
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