Direct Endorsement Lender to Displacement Ventilation
Direct Endorsement Lender
The direct endorsement lender is an FHA-approved lender that is authorized by the FHA to underwrite the FHA mortgage insurance required for the acceptable properties. In addition to providing FHA-insured mortgages for single-family homes and small residential properties, FHA insurance also assists developers and investors who are buying or building apartment buildings, especially for affordable housing properties.
Direct Participation Program
The direct participation program is a real estate investment program, in which investors participate directly in the cash flow and tax benefits of an investment. Such a program, for example, would pass-through much of the property’s operating profits and allowable tax deductions to the investors.
Directional Growth
In real estate development, directional growth refers to the path of development, usually in a metropolitan area. Master plans and zoning ordinances try to control and direct future development and growth. However, much growth often occurs outside of government control.
Disbursement
In real estate finance and mortgage loan closing, disbursement refers to the release of funds. With a purchase mortgage loan, the closing agent disburses the loan proceeds at the conclusion of the closing. However, if a borrower is refinancing a primary residential property, the disbursement must be delayed three business days. This three-day delay is called the “Rescission Period,” and allows the borrower to reconsider and possibly cancel the refinance loan.
Discharge Date
With bankruptcies, the discharge date is the official date on which the bankruptcy filing is formally ended. When a bankruptcy is discharged, the bankruptcy reorganization or disbursement is completed and bankruptcy protection ends. When analyzing credit history, many lenders and creditors will set their restrictions according to the discharge date (and not when the adverse credit entry first fell into delinquency).
Disclosure
In the real estate and mortgage loan industry, disclosures refer to required releases of information. Real estate transactions normally require the seller to disclose specific information about the subject property. Mortgage loans require the lender to provide the borrower with several government-required disclosures.
Discount Fee, Point
The discount fee is a charge by the lender and can be assessed as either a dollar amount or as points (percentage of the loan amount). The discount fee is normally charged in conjunction with a lowering of the interest rate.
Discount Rate
The discount rate is a measurement of the difference between the current cost of money and future cost of money. It is used in the discounted cash flow analysis to determine the present value of future projected cash flow.
Discounted Cash Flow
The discounted cash flow is a financial expression of the estimated current value of future cash flow. This measurement helps to estimate the current value of a property, based on its future earnings. By comparing this current value estimate with the projected development cost, the real estate investor can analyze the profitability of the investment. This calculation begins with the projected future cash flow, and then reduces that cash flow by the discount rate.
Discounted Lease
The discounted lease is an assigned lease in a funding arrangement, in which the lessor or property owner assigns the lease (and its cash flow or collection rights) in exchange for immediate cash now. The upfront cash is much less than the rent that would normally be collected.
Discretionary Account
The discretionary account is an investment account with which the fund manager or adviser has full authority to invest the account, without having to obtain prior approval from the clients. In contrast, non-discretionary accounts require the investor’s prior and specific approval before funds can be directed into a project or investment opportunity.
Discretionary Income
An individual’s discretionary income is the income remaining after the borrower has paid the mortgage payments and basic necessities. Many lenders, in addition to calculating an applicant’s debt-to-income (DTI) ratio, require borrowers to have a minimum level of discretionary income for emergency expenses and recreation.
Disintermediation
The term disintermediation refers to the switching of cash investments away from savings accounts and into other investments. Many people blame this rapid movement of funds with the demise of the savings and loan (S&L) industry. Until the 1970s, the most common form of investment for consumers has been their home and their savings account at the local bank or S&L. But with newer investments offering higher returns than savings accounts, consumers began switching their investments directly into mutual funds, bonds, T-Bills and stocks.
Displacement Ventilation
Displacement ventilation is a method of distributing air throughout a room, so as to increase the efficiency of the HVAC (heat, ventilation and air conditioning) system. The most common approach is to send cool air into a room through floor vents. As the cool air warms, it rises and is removed from the room with extraction vents near the ceiling. In addition to the potential energy savings, displacement ventilation can also improve air quality because it continuously recycles the air in the room. However, proper use of displacement ventilation requires adequate room height.
