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GLOSSARY
Conventional Mortgage
This refers to a fixed-rate, 30-year mortgage that is not insured by the government (FHA, Farmers Home Administration (FmHA) or Veterans Administration). In this mortgage the interest rate will not change during the entire term of the loan.
Conversion clause
A conversion clause is contractual verbiage that allows an adjustable-rate loan to be converted to a fixed-rate loan. Fees usually apply.
Conversion option
A conversion option is a feature of an adjustable-rate mortgage. It allows the borrower to convert the mortgage into a fixed-rate loan under certain conditions. Not all adjustable-rate mortgages have this feature, and those that do would carry a higher interest rate. The loan documentation would specify when and how the borrower could execute the conversion.
Convertible ARM
When an adjustable rate mortgage is converted to a fixed rate mortgage under certain conditions or by a borrower within a specific time.
Convertible mortgage
An adjustable-rate home mortgage where the borrower has the option to change the loan terms into a fixed-rate loan at any time.
Conveyance
A document that transfers title to property. It is also used to affect a transfer, such as a deed, or mortgage.
Conveyance tax
A tax imposed on the transfer of real property.
Cooperating broker
A real-estate broker who earns a commission from locating a buyer for a property and initiates a negotiation.
Cooperative (co-op)
It is a like a multiple ownership wherein the residents of a housing project with multiple units own shares of the cooperative corporation which owns the said property. This lends each resident the righ to occupy a particular unit.
Cooperative mortgage
A cooperative mortgage is a loan that the borrower uses to fund a purchase of co-op (cooperative) shares. A cooperative share is an ownership stake in a legal entity that owns one or more residential buildings.
Core capital
Core capital is a term defined by federal regulators that pertains to the minimum amount of wealth that a bank must have to operate. Core capital, also called Tier 1 capital, is mainly the value of the bank's shareholders' equity.
Corporate relocation
A corporate relocation occurs when an employer transfers an employee to another facility, such that the employee must change residences. The employer generally covers the cost of the relocation.
Corrective work
Corrective work, in real estate, addresses items in need of repair or maintenance. A property buyer negotiates the corrective work to be completed, and the seller must complete agreed upon items before the sale closes.
Correspondency system
A correspondency system is the interface used by bank agents to originate and manage loans on the bank's behalf. These agents are often called loan correspondents.
Correspondent bank
A correspondent bank shares its services with another, usually smaller, bank. This relationship allows the smaller bank to provide a larger selection of services to its customers.