Real Estate Settlement Procedures Act
(RESPA)
A federal law that requires lenders to provide
mortgage loan borrowers with information of known
or estimated settlement costs.
Real Property
Land and any improvements permanently affixed to
it, such as buildings.
Realtor
A real estate agent or broker who
is a member of the National Association of
Realtors.
Rebate
Monies paid from the lender/broker towards the
borrowers non-recurring closing costs which
includes appraisals, application fees,
underwriting fees, processing fees, and title.
Recognition
Agreement
An agreement by the co-op that recognizes specific
rights of lenders who finance the acquisition of
interests in a co-op project.
Reconveyance
The transfer of property back to the owner when a
mortgage loan is fully repaid.
Recording
The act of entering documents concerning title to
a property into the public records.
Recording Fee
Money paid to an agent for entering the sale of a
property into the public records.
Refinance
Retirement of an existing debt from the proceeds
of a new loan, using the same collateral as
security.
Restrictive Covenants
Private restrictions limiting the use of real
property. Restrictive covenants are created by
deed and may "run with the land,"
binding all subsequent purchasers of the land, or
may be "personal" and binding only
between the original seller and buyer. The
language of the covenant, the intent of the
parties, and the law in the State where the land
is situated govern the determination whether a
covenant runs with the land or is personal.
Restrictive covenants that run with the land a re
encumbrances and may affect the value and
marketability of title. Restrictive covenants may
limit the density of buildings per acre, regulate
size, style or price range of buildings to be
erected, or prevent particular businesses from
operating or minority groups from owning or
occupying homes in a given area. (This latter
discriminatory covenant is unconstitutional and
has been declared unenforceable by the US Supreme
Court.)
Rental Income
Income generated by renting property to a tenant.
Reverse Annuity Mortgage (RAM)
A Mortgage in which the borrower receives periodic
payments from the lender who uses the borrower's
equity in the home as security.
Reserves
Sometimes referred to as "cash reserves"
or "post closing reserves"; this is the
amount of liquid assets the borrower has remaining
after completion of the mortgage loan transaction
and payment of any other debt(s) that had to be
satisfied in order for the borrower to qualify for
the loan. See: Liquidity
Resident Alien
A non-U.S. citizen who is granted most of the
rights of a U.S. citizen, including permanent
residency in the United States. Resident Alien
status is usually evidenced by a "Green
Card."
Residential Mortgage Credit Report
This report is prepared only at the request of
your mortgage lender. This report utilizes
information from at least two of the three
national credit bureaus and information provided
on your loan application. The report contains
verified and updated credit history, employment
and residence information, as well as public
record information.
Revolving Debt
A debt that does not have a fixed payment,
although repayment is usually a percentage of the
outstanding balance and made at regular intervals;
most common are credit cards issued by banks or
department stores.
Right to Rescission
Under the provisions of the Truth-in-Lending Act,
the borrower's right, on certain kinds of loans,
to cancel the loan within three days of signing a
mortgage.
