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GLOSSARY
Niche banks
Niche banks are financial institutions that target a specific customer base. For example, a bank that aligns its marketing messages and product offerings to attract people who enjoy extreme roller coasters would be a niche bank.
Nigerian Scam
Nigerian scam is the name of a prevalent hoax that lures an individual into handing money over to a stranger. The scam often involves an email letter that describes a huge cash commission; the commission is said to be available to the person who helps facilitate a large monetary transfer. The scammer will ask for money upfront to cover transaction costs. If the money is provided, the scammer will either try to get more money, or simply disappear.
NIMBY (Not In My Backyard)
NIMBY stands for Not In My Backyard. The term refers to the tendency for individuals to oppose having certain developments located near their homes, even though they may not be opposed to those developments in theory. Consider a halfway house, for example; residents might argue against having a halfway house located next door, even if they aren't uniformly opposed to halfway houses in general.
No cash out refinance
A home mortgage for a lower interest rate in an amount that doesn't exceed closing costs.
No documentation mortgage - no doc
A no documentation mortgage, also called a no doc, is a real estate property loan that doesn't require the borrower to present paperwork to verify his income during the approval process. No doc mortgages are more expensive than fully documented mortgages due to the chance that the borrower might overstate his earnings.
No fault insurance
No fault insurance is a plan that provides accident coverage to the insured, regardless of who caused the incident. Some U.S. states have no-fault auto insurance laws, where insureds recover damages from their own insurance companies. Such a system eliminates the need to sue the other party and establish fault.
No income/no asset mortgage - NINA
A no income/no asset mortgage, or NINA, is a real estate property loan that can be approved without documentation that verifies the borrower's regular earnings and asset base. Usually, the lender will verify the borrower's employment. NINAs are more expensive than traditional mortgage loans, due to the risk that the borrower will overstate his qualifications to obtain a loan approval.
No-cost loan
No-cost loans are loans where the lender may not directly charge the borrower like appraisal, recording, settlement fees etc. This has to be clarified with the lender before taking the loan. The borrower has to pay a higher interest rate for a no-cost loan.
No-doc loan
A shortened term for “No documentation loanâ€. When a borrower supplies a minimum amount of information and the lender makes their decision based on credit history and the size of the down payment. These loans typically have a higher interest rate.
No-documentation loan
When a borrower supplies a minimum amount of information and the lender makes their decision based on credit history and the size of the down payment. These loans typically have a higher interest rate.
No-fee mortgage
A no-fee mortgage is a real estate property loan that doesn't have any upfront fees or closing costs. Generally speaking, a no-fee mortgage will have a slightly higher interest rate than a traditional mortgage.
No-lien affidavit
A no-lien affidavit is a written statement that a particular property has no claims on the title. The no-lien affidavit is signed by the property owner.
No-ratio mortgage
A no-ratio mortgage doesn't require the calculation of the borrower's debt-to-income ratio during the approval process. The lender will, instead, base the mortgage underwriting on other factors, such as the borrower's downpayment and credit history. This may be appropriate in cases where the borrower has a volatile income stream. No-ratio mortgages are considered riskier than conventional mortgages and, therefore, are more expensive.
Nominee recipient
A nominee recipient is a U.S. taxpayer who receives a 1099-DIV or 1099-INT for dividend or investment earnings that partially belong to another party or parties. The nominee recipient must provide the IRS and the other parties with the breakdown of each party's taxable earnings.
Non performing asset
An acronym for non sufficient funds. An NSF is issued by a bank when there is not enough money in the account to cover the amount of the check or transaction.