RAM Funding Services Corporation - Note Buyers & Brokers
Cash Flow Terms and Definitions

Definitions on this list:

A:  A credit customers  Acceleration Clause  Accounts Payable  Accounts Receivable  Accounts Receivable Aging Report  Advance Rate  Amortization  Articles of Incorporation  Asset  Assignability  Assignee  Assignment  Assignor 

B:  B through D credit customers  Bad Debt  Balance sheet  Balloon  Bankruptcy  Beneficiary  Bill of Sale  Business-based income streams 

C:  Cash flow  Cash flow broker  Cash flow industry  Cash flow instrument  Cash flow specialist  Cash flow transaction  Chattel mortgage  Collateral  Collateral-based income streams  Collectibility  Commission  Consumer-based income streams  Contingency-based income streams  Corporation  Creditor 

D:  Debt instrument  Debtor  Deed of Trust  Default  Due diligence 

E:  Escrow 

F:  Face value  Factoring  Foreclosure  Full Purchase Buyout  Funding source 

G:  Government-based income streams 

H:  Hypothecation 

I:  Income stream  Institutional lenders  Insurance-based income streams  Intangible personal property  Investment-to-value ratio  IRS 

J:  Joint venture

K: 

L:   Land Contract  Lease  Leverage  Lien  Limited liability company  Loan-to-value ratio 

M:  Marginal credit customers  Market value  Mortgage 

N:  Note  Notice of Pre-lien 

O:  Owner financing 

P:  Partnership  Payee  Payor  Partial  Partial Purchase Buyout  Personal guaranty  Portfolio  Privately held  Profit and loss statement  Promissory note 

Q: 

R:  Real property  Replevin  Reserve  Reverse Partial Buyout 

S:  Satisfaction  Seasoning  SEC  Secondary market  Securitization  Security interest  Seller  Seller Financing  Servicing  Simultaneous Purchase Buyout  Sole proprietorship  Split Purchase Buyout  Split Purchase Buyout  Subordination  Sub-Prime Credit 

T:  Tail  Tangible personal property  Time value of money  Title  Title commitment  Title insurance  Title policy  Trial balance printout  Trust Deed  Two Stage Buyout 

U:  Uniform Commercial Code  Unseasoned

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"A" credit customers:
Consumers with impeccable credit, who can obtain a loan from traditional lenders.  Return to Mortgage Terms & Definitions List
 

Acceleration Clause:
Language in a lease that secures payments for the full term of the lease.  Return to Mortgage Terms & Definitions List
 

Accounts Payable:
The amount of money a company owes for goods and services it has received; any outstanding debt that a company has.  Return to Mortgage Terms & Definitions List
 

Accounts Receivable:
A collection of a company's outstanding invoices (invoices which have not yet been paid by the company's customers).  Return to Mortgage Terms & Definitions List
 

Accounts Receivable Aging Report:
A report showing how long invoices from each customer have been outstanding.  Return to Mortgage Terms & Definitions List
 

Advance Rate:
The percentage of the face amount of an Income stream that a funding source will advance to a client.  Return to Mortgage Terms & Definitions List
 

Amortization:
The gradual, systematic payment of a debt, such as a Mortgage or other loan, in installments of principal and interest for a definite time, so that at the end of that time, the debt will have been paid in full.  Return to Mortgage Terms & Definitions List
 

Articles of Incorporation:
A document filed with a U.S. state by the founders of a corporation. After approving the articles, the state issues a Certificate of Incorporation; the two documents together become the Charter of Incorporation.  Return to Mortgage Terms & Definitions List
 

Asset:
Anything having commercial or exchange value that is owned by a business, institution or individual. A business' assets might include its real estate, equipment inventory, intellectual assets such as copyrights or trademarks, and accounts receivable.  Return to Mortgage Terms & Definitions List
 

Assignability:
The ability to assign (or sell) an Income stream to another individual or business.  Return to Mortgage Terms & Definitions List
 

Assignee:
The person or business entity who is given, obtains, or buys the right to an asset.  Return to Mortgage Terms & Definitions List
 

Assignment:
The transfer of the rights, title or interest of any Debt instrument that is properly owned by another party.  Return to Mortgage Terms & Definitions List
 

Assignor:
The person giving or selling an asset, and subsequently, forfeiting rights to that asset.  Return to Mortgage Terms & Definitions List
 

"B" through "D" credit customers:
These consumers have less than perfect to bad credit and usually cannot qualify for traditional financing. Also called sub-prime credit customers.  Return to Mortgage Terms & Definitions List
 

Bad Debt:
Any debt that is delinquent and has been written off as uncollectible.  Return to Mortgage Terms & Definitions List
 

Balance sheet:
A financial statement that shows a business' current financial condition, with assets on the left side and liabilities and net worth on the right side.  Return to Mortgage Terms & Definitions List
 

Balloon:
The balance of principal that is due and owing in its entirety at a specified point in time, but in any event, less than the time required to fully amortize the debt.  Return to Mortgage Terms & Definitions List
 

Bankruptcy:
A state of insolvency of an individual or organization. The inability to pay debts.  Return to Mortgage Terms & Definitions List
 

Beneficiary:
The person or party entitled to receive the benefits, or proceeds, of the life insurance policy upon the death of the insured person.  Return to Mortgage Terms & Definitions List
 

Bill of Sale:
A document used to transfer the title of certain goods from seller to buyer.  Return to Mortgage Terms & Definitions List
 

Business-based income streams:
Cash flow instruments that are paid to a business by another business or government.  Return to Mortgage Terms & Definitions List
 

Cash flow:
The flow of cash through a business or household. In business terms, cash flow involves the flow of cash into a company in the form of revenues, and out of the company in the form of expenses.  Return to Mortgage Terms & Definitions List
 

Cash flow broker:
Professional whose primary purpose is to unite income stream sellers with funding sources. They may operate as referral sources or as the primary liaison for cash flow transactions.  RAM Funding Services is THE Cash Flow Broker!  Mortgage Note Brokers & Buyers  Return to Mortgage Terms & Definitions List
 

Cash flow industry:
The buying, selling, and brokering of Privately held debt in the secondary marketplace; the marketplace where businesses and individuals get help managing their Cash flow flow needs.  Return to Mortgage Terms & Definitions List
 

Cash flow instrument:
Future payment or series of payments. Also called a Debt instrument or Income stream.  Return to Mortgage Terms & Definitions List
 

Cash flow specialist:
A cash flow professional who brokers cash flow transactions or buys cash flow instruments.  You can contact one here!  Return to Mortgage Terms & Definitions List
 

Cash flow transaction:
Occurs whenever a funding source pays cash to an individual or business in exchange for an Income stream.  Return to Mortgage Terms & Definitions List
 

Chattel mortgage:
A Mortgage on personal property, given to secure a debt. Typically used in the sale of a business. Also called a security agreement.  Return to Mortgage Terms & Definitions List
 

Collateral:
Something of value (land, a home, a car, etc.) that is pledged as security to ensure the payment of a debt. Collateral is promised to a lender until a loan is repaid. If the borrower defaults, the lender has the right, by law, to seize the collateral.  Return to Mortgage Terms & Definitions List
 

Collateral-based income streams:
Cash flow instruments that are secured by collateral.  Return to Mortgage Terms & Definitions List
 

Collectibility:
Refers to the funding source's ability to collect future Income stream payments once they are purchased.  Return to Mortgage Terms & Definitions List
 

Commission:
Fee paid to a broker for executing or referring a Cash flow transaction.  Return to Mortgage Terms & Definitions List
 

Consumer-based income streams:
Cash flows in which the party that owes payments is a consumer (a private individual).  Return to Mortgage Terms & Definitions List
 

Contingency-based income streams:
Cash flows in which the recipient is not necessarily legally entitled to receive payments, or in which the amount of the payment is uncertain or contingent upon outside factors.  Return to Mortgage Terms & Definitions List
 

Corporation:
A legal entity, chartered by a U.S. state or the federal government, and separate and distinct from the persons who own it. It is regarded by the courts as an artificial person; it may own property, incur debts, sue or be sued.  Return to Mortgage Terms & Definitions List
 

Creditor:
One who is owed payments on a debt by a debtor.  Return to Mortgage Terms & Definitions List
 

Debt instrument:
Future payment or series of payments, or a debt that one party owes to another party. Also known as Income streams and/or Cash flow instruments.  Return to Mortgage Terms & Definitions List
 

Debtor:
One who owes something and makes payments to a creditor.  Return to Mortgage Terms & Definitions List
 

Deed of Trust:
The document used in some states instead of a Mortgage.  The title is conveyed to a trustee rather than to the borrower.  Return to Mortgage Terms & Definitions List  Trust Deed Buyers Quote
 

Default:
The omission or failure to perform or fulfill a legal duty, obligation, or promise (i.e. to pay a debt).  Return to Mortgage Terms & Definitions List
 

Due diligence:
Exhaustive research on a transaction, Income stream, client, and/or payor. Due diligence may involve credit checks, appraisals, UCC searches, Lien searches, or on-site visits with clients.  Return to Mortgage Terms & Definitions List
 

Escrow:
The system by which money documents, personal property, or real property is held in trust for another party by a disinterested third party until the terms and conditions of the escrow instructions are completed or terminated.  Return to Mortgage Terms & Definitions List
 

Face value:
The current principal balance on an Income stream.  Return to Mortgage Terms & Definitions List
 

Factoring:
A funding source that specializes in funding Accounts Receivable.  Return to Mortgage Terms & Definitions List
 

Foreclosure:
A legal proceeding in court to seize property given as security for a debt that is in default.  Return to Mortgage Terms & Definitions List
 

Full Purchase Buyout:
A Buyer purchases the full remaining interest in a Note and Mortgage.  Return to Mortgage Terms & Definitions List

Funding source:
An individual investor or an investment company that buys Income streams.  Return to Mortgage Terms & Definitions List
 

Government-based income streams:
Cash flows paid by a government entity, either directly or through an insurance company.  Return to Mortgage Terms & Definitions List
 

Hypothecation:
Borrowing funds from a lender, investing those funds in a Debt instrument, and giving the lender a security interest in the debt instrument as the collateral for the loan.  Return to Mortgage Terms & Definitions List
 

Income stream:
A future payment or series of payments, or a debt that one party owes to another party. Also known as a Cash flow instrument or a Debt instrument.  Return to Mortgage Terms & Definitions List
 

Institutional lenders:
Savings and loan associations, local and regional banks, Mortgage companies, finance companies, and commercial lenders.  Return to Mortgage Terms & Definitions List
 

Insurance-based income streams:
Cash flows stemming from insurance companies and paid to individuals or businesses.  Return to Mortgage Terms & Definitions List
 

Intangible personal property:
Something that has value but is not a tangible asset, for example, a trademark, copyright, patent, or trade secret.  Return to Mortgage Terms & Definitions List
 

Investment-to-value ratio:
A measure of how secure a creditor's position is and how likely the creditor is to recoup all of his or her money in the event of a foreclosure.  Return to Mortgage Terms & Definitions List
 

IRS:
Internal Revenue Service - Federal agency that levies and collects taxes.  Return to Mortgage Terms & Definitions List

Joint venture:
A business entity established for a specific task, operation, or goal.  Return to Mortgage Terms & Definitions List
 

Land Contract:
An installment contract drawn between a buyer and a seller for the sale of property, in which ownership of the property is not transferred until all the payments have been made.  Return to Mortgage Terms & Definitions List  Land Contract Buyers Quote

Lease:
A written agreement under which a property owner allows a tenant to use the property for a specified period of time and rent.   Return to Mortgage Terms & Definitions List
 

Leverage:
The ratio of debt to total assets.  Return to Mortgage Terms & Definitions List
 

Lien:
The right to take and hold or sell the property of a debtor as security or payment for a debt or duty.  Return to Mortgage Terms & Definitions List

Limited liability company:
A form of business structure designed to combine the best of corporate and partnership attributes into one entity.  Return to Mortgage Terms & Definitions List
 

Loan-to-value ratio:
A measure of how heavily mortgaged a property is and how likely the owner is to default on his or her debts.  Return to Mortgage Terms & Definitions List
 

Marginal credit customers:
Consumers who may have had some slow pay problems, but generally pay their bills.  Return to Mortgage Terms & Definitions List
 

Market value:
The price at which a ready, willing, and informed person would buy something; the price property would command in the current market.  Return to Mortgage Terms & Definitions List
 

Mortgage:
A written instrument that creates a Lien by pledging real property as security for a debt.  Return to Mortgage Terms & Definitions List  Privately Held Mortgage Quote
 

Note:
A written instrument that creates a Lien by pledging a Mortgage as security for a debt.  Return to Mortgage Terms & Definitions List  Note Purchase

Notice of Pre-lien:
A document notifying the owner of real property that materials or services are being furnished to his real property, putting him on notice that the one sending it will look to have a lien against the real property if those materials or services are not paid for.  Return to Mortgage Terms & Definitions List
 

Owner financing:
A type of financing in which the seller of a tangible item accepts a Promissory note as a portion of the purchase price. Also called seller financing.  Return to Mortgage Terms & Definitions List
 

Partnership:
A common form of joint ownership of a business.  Return to Mortgage Terms & Definitions List
 

Payee:
Person or business that has the right to receive a payment or series of payments and is interested in selling that Income stream for cash. (Also called the seller or client.)  Return to Mortgage Terms & Definitions List
 

Payor:
The person, company, or government responsible for making payments on an Income stream.  Return to Mortgage Terms & Definitions List
 

Partial:
Any part of a payment stream that is less than the full amount due.  Return to Mortgage Terms & Definitions List
 

Partial Purchase Buyout:
A buyer purchases a fixed number of payments while the note seller retains all residual interest in the Note and Mortgage.  Return to Mortgage Terms & Definitions List

Personal guaranty:
A contractual agreement between a funding source and a seller, whereby the seller assumes personal responsibility and liability for the obligations of the Income stream.  Return to Mortgage Terms & Definitions List
 

Portfolio:
A group or package of Income streams of the same type.  Return to Mortgage Terms & Definitions List
 

Privately held:
Owed to a private individual or business rather than to a bank or other financial institution.  Return to Mortgage Terms & Definitions List  Privately Held Mortgage Quote
 

Profit and loss statement:
A financial statement that shows a historical record of a business' income and expenses.  Return to Mortgage Terms & Definitions List
 

Promissory note:
A written promise to pay a specified amount to a specified party over a certain period of time.  Return to Mortgage Terms & Definitions List  Promissory Note Quote
 

Real property:
Real estate.  Return to Mortgage Terms & Definitions List
 

Replevin:
A legal proceeding in court to seize property (other than real estate) given as security for a debt that is in default.  Return to Mortgage Terms & Definitions List
 

Reserve:
An amount a funding source holds in its account to cover potential payment defaults. After a certain time period has passed, the funding source rebates the reserve to the client less any fees or charges for delinquency. Also called a bad debt reserve.  Return to Mortgage Terms & Definitions List
 

Reverse Partial Buyout:
Buyer purchases a Mortgage from a Note seller, but seller keeps a certain number of payments up front.  Return to Mortgage Terms & Definitions List

Satisfaction:
The discharge of an obligation by paying a party what is due (i.e., the satisfaction of an IRS Lien or the satisfaction of a Mortgage).  Return to Mortgage Terms & Definitions List
 

Seasoning:
The length of time payments have been made on a Note or other Debt instrument.  Return to Mortgage Terms & Definitions List
 

SEC:
The Securities Exchange Commission - The primary federal regulatory agency for the securities industry, whose responsibility is to promote full disclosure and to protect investors against fraudulent and manipulative practices in the securities markets.  Return to Mortgage Terms & Definitions List

Secondary market:
The marketplace where individuals and businesses can sell Privately held Income streams to Funding sources for cash.  Return to Mortgage Terms & Definitions List
 

Securitization:
The bundling and resale of Cash flow instruments to investors; permitted only for parties licensed and regulated by the SEC.  Return to Mortgage Terms & Definitions List
 

Security interest:
An interest in property, other than real estate, which is given as security for a debt or other obligation. A security interest is created by execution of a security agreement and one or more financing statements under the Uniform Commercial Code.  Return to Mortgage Terms & Definitions List
 

Seller:
The person or company that is holding a Debt instrument and wants to sell.  Return to Mortgage Terms & Definitions List
 

Seller Financing:
See Owner financing.  Return to Mortgage Terms & Definitions List

Servicing:
The collection of payments of interest and principal, and trust fund items such as fire insurance, taxes, etc., on a Note by the borrower in accordance with the terms of the Note. Servicing by the lender also consists of operational procedures covering accounting, bookkeeping, insurance, tax records, loan payment follow-up, delinquent loan follow-up and loan analysis.  Return to Mortgage Terms & Definitions List
 

Simultaneous Purchase Buyout:
The buyer funds the Note purchase transaction on the same day as the closing on the property.  Return to Mortgage Terms & Definitions List

Sole proprietorship:
A business owned and operated by an individual.  Return to Mortgage Terms & Definitions List
 

Split Purchase Buyout:
Buyer purchases a Mortgage that has a certain number of payments and a Balloon payoff due at a later date.  Return to Mortgage Terms & Definitions List

Subordination:
The act of a creditor acknowledging in writing that a debt due him or her by a debtor shall be inferior to the debt due another creditor by the same debtor.  Return to Mortgage Terms & Definitions List
 

Sub-Prime Credit:
See B through D credit customers  Return to Mortgage Terms & Definitions List

Tail:
The payment stream and/or Balloon payment of an Income stream subsequent to another party's right and interest in the Income stream. Usually the back half of the payment stream when another party has purchased the front half.  Return to Mortgage Terms & Definitions List
 

Tangible personal property:
Personal property other than real estate.  Examples include cars, boats, or other assets.  Return to Mortgage Terms & Definitions List
 

Time value of money:
Concept that addresses the way the value of money changes over a period of time.  Return to Mortgage Terms & Definitions List
 

Title:
A legal document establishing evidence of ownership.  Return to Mortgage Terms & Definitions List

Title commitment:
A commitment on the part of the insurer, once a title search has been conducted, to provide the proposed insured with a Title insurance policy upon closing.  Return to Mortgage Terms & Definitions List
 

Title insurance:
Title insurance can benefit either the payor or the payee. Should the beneficiary suffer any damages due to clouded or false title to real estate, title insurance recompenses the damaged party to the extent of the damages.  Return to Mortgage Terms & Definitions List
 

Title policy:
An insurance policy that insures a party against loss due to a defective title.  Return to Mortgage Terms & Definitions List
 

Trial balance printout:
A spreadsheet that lists all loans in a portfolio and their payment schedule. Usually required for a portfolio transaction.  Return to Mortgage Terms & Definitions List
 

Trust Deed:
See Deed of Trust  Return to Mortgage Terms & Definitions List  Trust Deed Buyers Quote

Two Stage Buyout:
Buyer pays a Note seller par value on their Mortgage, but in two stages.  Return to Mortgage Terms & Definitions List

Uniform Commercial Code:
Standardized set of guidelines protected by law that set down how business transactions must be conducted.  Return to Mortgage Terms & Definitions List

Unseasoned:
A lease or Note that has had few, if any, payments made.  Return to Mortgage Terms & Definitions List

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