What is the National Automated Clearing House Association (NACHA)? The National Automated Clearing House Association (NACHA) is in charge of maintaining everything that relates to administering, developing, and governing the ACH Network. The Automated Clearing House (ACH) Network manages electronic funds transfers for the United States through a computer-based system. Understanding the National Automated Clearing…
What is the MSCI All Country World Index (ACWI)? The MSCI All Country World Index (ACWI) is a global equity index that measures the equity performance in both the developed and emerging markets. By the end of 2019, it covers more than 3,000 stocks globally. It is a market capitalization-weighted index developed by MSCI Inc.,…
What is a Mortgagor? A mortgagor is a person or entity that borrows money to purchase a piece of real estate. Mortgagors can obtain loans from financial institutions or individual lenders and are often evaluated based on their credit history and the quality of collateral they post. In mortgage loans, the mortgagor is required to…
What is a Mortgage Bond? A mortgage bond is a type of bond secured by mortgages that is typically real estate or other real assets. The assets are also known as the collateral of the bonds. Holders of mortgage bonds can make claims on the collateral. If borrowers cannot repay their debts, bondholders can sell…
What is a Mortgage Insurance? Mortgage insurance is a type of insurance that compensates the lenders of mortgage loans or bonds when the borrowers are not able to meet their obligations. It is also known as mortgage default insurance and mortgage indemnity guarantee (MIG). How Mortgage Insurance Works Mortgage insurance protects mortgage lenders…
What is a Mortgage Banker? A mortgage banker is an individual or entity that facilitates a mortgage. Mortgage bankers fund mortgages using either their own funds or borrowed funds from a warehouse lender. The mortgage banker earns fees from originating a loan and is typically employed by a financial institution. Mortgage bankers work with people…
What is a Liquidity Ratio? A liquidity ratio is a type of financial ratio used to determine a company’s ability to pay its short-term debt obligations. The metric helps determine if a company can use its current, or liquid, assets to cover its current liabilities. Three liquidity ratios are commonly used – the current ratio,…
What is Morbidity Rate? The morbidity rate measures the portion of people in a specific geographical location who contracted a particular disease during a specific period of time. It indicates the frequency of the disease appearing in a population. Morbidity refers to the status of being ill or unhealthy. It includes the conditions…
What is a Modified Gross Lease? A modified gross lease is a unique method of property ownership and maintenance, where the landlord and tenant are both responsible for paying operating expenses for a property. The rent is usually requested in a lump sum payment and can include sums of money that are used to pay…
What is Guaranteed Renewable? The term guaranteed renewable is used in the insurance industry and refers to an insurance policy feature that ensures that the policyholder continues to receive coverage as long as the policy’s premiums are paid. In a guaranteed renewable policy, there is, at times, an option where the policyholder is…
