Predatory Credit: abusive financing strategies that are included with an interest rate in order to someone who doesn’t have the capability to pay-off. In addition it relates to frequent refinancing of a loan charging you higher desire and you will charges when.

Predictive Parameters: The variables which can be the main algorithm comprising elements of a card-scoring model. This type of parameters are used to assume an excellent borrower’s coming borrowing from the bank performance.

Well-known Inventory: inventory that takes top priority over well-known stock pertaining to dividends and you will liquidation legal rights. Common stockholders routinely have no voting legal rights.

Pre-property foreclosure Sales: a procedure the spot where the borrower was permitted to offer a property to have a cost less than what is owed inside to quit a foreclosure. It purchases totally joins the borrower’s personal debt.

Prepayment: people count reduced to minimize the principal balance regarding financing up until the deadline otherwise fee completely away from home financing. For the each circumstances, complete commission happens before financing has been completely amortized.

Prepayment Punishment: a provision in some finance you to definitely cost you so you can a great debtor which pays off a loan prior to it being owed.

Pre-Qualify: a loan provider informally decides the most a person is qualified to acquire.

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