Terms with Category Financial Banking

  • Monthly Periodic Rate Bank,
    • The interest rate factor used to calculate the interest charges on a monthly basis. The factor equals the yearly rate divided by 12.
  • Mortgage Application Bank, Very Important,
    • A document in which a prospective borrower details his or her financial situation to qualify for a loan.
  • Mortgage Banker Bank, Important,
    • An employee of a large bank who finds financing for the general public.
  • Mortgage Brokerage Bank, Very Important,
    • An individual or group who brokers deals between their clients and lenders.
    CanEquity is a mortgage brokerage.
  • Mortgage Lender (ML) Bank, Very Important,
    • A lender that offers mortgages, often through a mortgage broker.
    Used internally by mortgage brokers and mortgage lenders.
  • Mutual Insurance Company Bank,
    • An insurance company where the each policyholder is a part owner of the company.
  • Negative Amortization Bank,
    • A gradual increase in loan debt that occurs when the monthly payment does not cover the entire principal and interest due. The shortfall is added to the remaining balance which creates "negative" amortization.
  • Net Cash Flow (NCF) Bank,
    • Incremental after-tax income plus depreciation expense resulting from investment.
  • Net Income (NI) Bank, Very Important,
    • The difference between effective gross income and expenses. The term is qualified as net income before depreciation and debt.
  • Net Interest Margin (NIM) Bank,
    • Net interest income (the difference between interest income and interest expense) as a percentage of average total assets.
  • Net Operating Loss (NOL) Bank, Very Important,
    • A net loss for the tax year because of business or casualty losses. Taxpayers may use an excess loss of one year as a deduction for certain past or future years.
  • Net Worth Bank,
    • The total value of all assets, such as house, car, furniture and investments, minus all debts, such as mortgages and credit card bills.
  • Netting Bank,
    • The offsetting with a counter-party of financial obligations or payments one is owed with those one is entitled to receive, thus reducing the costs arising out of payment settlements. Netting is also used as a risk management tool to help counter-parties reduce their exposure to credit risk.
  • Niche Banks Bank,
    • Smaller banks that cater to particular communities or certain industries. These banks have been thriving in the fallout from mega-bank mergers.
  • No Credit History Bank,
    • To have no record of an individual's credit worthiness.
  • No-documentation Loan Bank,
    • A mortgage in which the applicant provides a minimum of information -- name, address, Social Insurance number (so credit reports can be pulled), and contact information for an employer, if there is one. The underwriter decides on the loan based on the applicant's credit history, the appraised value of the house and size of down payment.
  • No-Load Annuity Bank,
    • An annuity that pays the salesperson no commission and has low fees and expenses. A no-load annuity is often sold by an insurer directly.
  • Non-Cancellable Bank,
    • A contract or section of a contract that cannot be modified.
  • Non-dischargeable Debt Bank,
    • Debt that cannot be eliminated in bankruptcy such as Federal taxes.
  • Non-liquid Asset Bank,
    • A possession that can't be transformed readily into cash. Stocks and bonds are liquid assets because they can be sold easily; a house is a non-liquid asset because it takes time to sell.
  • Non-owner Occupant Bank,
    • A borrower who purchases a property for investment or rental purposes and will not occupy the property.
  • Non-recourse Debt Bank,
    • A loan secured by collateral where the borrower is not personally liable.
  • Non-refundable Credit Bank,
    • Tax credits reduce your tax liability dollar-for-dollar. Non-refundable credits can get your tax bill down to zero.
  • North American Free Trade Agreement (NAFTA) Bank,
    • An agreement between the United States, Canada, and Mexico that allows for freer trade between the three countries.
  • Not-for-Profit Bank,
    • An Organization operated solely for: social welfare, civic improvement, pleasure or recreation, or any other purpose except profit.
  • Note Bank,
    • A legal acknowledgement of a debt and an implicit promise to repay. It includes the loan amount, interest rate and term.
  • Note Rate Bank,
    • The percentage paid by a borrower for the use of money, usually expressed as an annual percentage on a promissory note.
  • Notice of Assessment (NOA) Bank, Canada, Important,
    • A form the federal government issues when personal taxes are complete. A notice of assessment shows a breakdown of the given years income along with the balance owing or refund.
    Canada Revenue Agency's T451 tax form.
  • Notice of Default (NOD) Bank, Important,
    • The step in the foreclosure process where the lender informs the court that the borrower is in arrears.
  • NSF Bank,
    • NSF means Non-sufficient Funds.
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