Mortgage and Loan Glossary (E)
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earnest money
A deposit made by a purchaser of real estate to show that he or she
is serious about buying the house.
easement
A right of way giving persons other than the owner access to or over
a property.
easement by prescription
The continued use of another person's property for a special purpose
that can develop into permanent use if certain conditions are met.
economic base
The industry within a certain geographic area that provides employment
opportunities that are essential to support the community.
effective age
An appraiser's opinion of the physical condition of a structure. The
actual age of a building may be longer or shorter than its effective
age.
effective gross income
Normal annual income, which may include overtime and bonuses, that
is regular, consistent and guaranteed. A person's salary is usually
the prime source, but other income may qualify if it is significant,
documented and stable.
elderly applicant
As defined in the Equal Credit Opportunity Act, a person 62 or older.
electronic fund transfer (EFT) systems
A variety of systems and technologies for transferring funds electronically
rather than by check.
eminent domain
The right of a government to seize private property for public use
upon payment of its fair market value. Eminent domain is the legal
basis for condemnation proceedings.
Employment Report
This includes unemployment rate, non-farm payroll, average work week
and overtime. The non-farm payroll is probably the most watched number
Increases in these numbers can be an indication of pending "wage
inflation."
encroachment
A property improvement or obstruction that physically intrudes upon
the property of another.
encumbrance
Anything that affects or limits the fee simple title to a property
or its value. Encumbrances may include mortgages, leases, easements,
or restrictions.
endorser
A person who signs ownership interest over to another party.
Equal Credit Opportunity Act (ECOA)
A federal law, enacted in 1974, that requires lenders and other creditors
to make credit equally available without discrimination based on
race, color, religion, national origin, age, sex, marital status,
or receipt of income from public assistance programs.
equity
A homeowner's financial interest in a property over and above the liens
against it. Equity is the difference between the appraised value
of the property and the principal balance still due on the mortgage.
escrow
An agreement providing that certain instruments or property be deposited
with a third party to be delivered upon the fulfillment or performance
of a specified act or condition. Also refers to a special account
that a lender uses to hold a borrower's monthly payments on property
taxes and insurance.
escrow account
The account in which a mortgage servicer holds the borrower's escrow
payments prior to paying property expenses such as property tax and
hazard insurance. Also called trust account, reserve account or impound
account.
escrow analysis
A periodic review of escrow accounts to determine if current monthly
deposit balances will provide sufficient funds to pay property taxes,
hazard insurance and other bills when they come due.
escrow payment
The portion of a borrower's monthly mortgage payment that is held by
the loan servicing company to pay for property taxes, hazard insurance,
mortgage insurance and other items as they become due.
estate
The nature and extent of interest that an individual has in real property
(degree of ownership). Also, the combined total of all real and personal
property owned by an individual at the time of their death.
eviction
The legal expulsion of an occupant from real property. Usually exercised
by a lessor against a lessee to recover possession of property.
examination of title
The report on the title of a property from the public records. Not
as thorough as a full title search.
exclusive listing
A written contract that gives a licensed real estate agent the exclusive
right to sell a property for a specified time, but reserving the
owner's right to sell the property alone without the payment of a
commission.
executor
A person named in a will to administer an estate. Most courts will
appoint an administrator if no executor is named. (The feminine form
is executrix.)
Existing Home Sales
Reports the number of existing homes sold, expressed on an annual basis.
Can be combined with New Home Sales to determine the total volume
of home sales, a strong indicator of future national mortgage origination
volume. Frequency: monthly. Source: National Association of Realtors.