Glossary

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Prime Mortgage Loans

Financial Term

Prime mortgage loans are loans made to borrowers who have high credit scores and a low debt-to-income ratio. These loans are considered to be low risk for lenders and often come with lower interest rates than other loan products.

In the financial industry, prime mortgage loans are a key product for lending institutions, such as banks and mortgage companies. These loans are used to help individuals purchase homes, refinance existing mortgages, or obtain home equity loans.

Prime mortgage loans are often preferred by borrowers because they offer favorable terms and can save them money over the life of the loan. Lenders also benefit from these loans because they are considered to be low risk, which reduces the likelihood of default and foreclosure.

In recent years, the use of prime mortgage loans has become more heavily regulated by government agencies in response to the housing market crash in the late 2000s. Lenders are now required to perform more extensive underwriting and verifications before approving these loans.

Overall, prime mortgage loans play a critical role in the financial industry by providing individuals and families with access to affordable housing and helping lenders manage their risks.

More Glossary Terms Beginning with P

Paediatric Exclusivity
means, in the US, a six-month period of exclusivity to market a drug which is awarded by the FDA in return for certain paediatric clinical studies using that drug. This six-month period runs from the date of relevant patent expiry.

Health Care Term Letter: P
Paid Development Method
An actuarial method to estimate ultimate losses for a given cohort of claims such as an accident year/product line component. If the paid-to-date losses are then subtracted from the estimated ultimate losses, the result is an indication of the unpaid losses. The basic premise of the method is that cumulative paid losses for a given cohort of claims will grow in a stable, predictable pattern from y

Insurance Term Letter: P
Panelboards
Oriented strand board, particleboard, medium density fibreboard and plywood. Operating Statistics

Manufacturing Term Letter: P
Partial Remission PR
A decrease in the size of a tumor, or in the extent of cancer in the body, in response to treatment.

Health Care Term Letter: P
Particleboard
A panelboard produced by chemically bonding clean sawdust, small wood particles and recycled wood fibre under heat and pressure. Forestry & Wood Products Industry Operating Statistics

Manufacturing Term Letter: P
Particulate Matter
Total suspended particulate. A measure of the solid particles (wood, process dust and smoke) found in air emissions.

Manufacturing Term Letter: P
Particulates
Tiny particles of a substance.

Manufacturing Term Letter: P
Passenger Load Factor
Represents the total number of seats sold as a percentage of total seat capacity on all sectors flown. Airline Industry

Transportation Term Letter: P
Passenger Mile Yield
The amount of passenger revenue earned per revenue passenger mile during a reporting period Airline Industry

Transportation Term Letter: P
Passenger revenue yield per Mile Average Yield per RPM
Represents the average scheduled passenger fare revenue for each revenue passenger mile (RPM), or each mile a scheduled revenue passenger is flown. Airline Industry

Transportation Term Letter: P
Passive Immunotherapy
Immunologically active material transferred into the patient as a passive recipient. Monoclonal antibodies are considered Passive Immunotherapy since antibodies are generated outside the body and given to the patient

Health Care Term Letter: P
Patent Term Extension
means an extension of up to five years in the term of a US patent relating to a drug which compensates for delays in marketing resulting from the need to obtain FDA approval.

Health Care Term Letter: P

More in this Category

Acquired Fund Fees and Expenses
fees and expenses charged by other investment companies in which the Fund invests a portion of its assets.

Financial Term
Acquisition
A business acquisition. The acquiring company records at its cost the acquired assets less liabilities assumed. The reported income of an acquiring company includes the operations of the acquired company from the date of acquisition.

Financial Term
Acquisition Proposal
means any merger, amalgamation, take-over bid, tender offer, arrangement, recapitalization, liquidation, dissolution, share exchange, material sale of assets (or any lease, long term supply agreement or other arrangement having the same economic effect as a material sale of assets) representing greater than 20% of the fair market value of the Arrangement, any sale of more than 20% of any class of

Financial Term
Adjusted Average Cardmember Loans
Represents average cardmember loans on an owned or managed basis, as applicable, excluding the impact of deferred card fees, net of deferred direct acquisition costs of cardmember loans on an owned or managed basis, as applicable.

Financial Term
ADR American Depositary Receipt
represents ownership in the shares of a non-U.S. company that trades in U.S. financial markets. ADRs enable U.S. investors to buy shares in foreign companies without the inconveniences of cross-border & cross-currency transactions. ADRs carry prices in US dollars, pay dividends in US dollars, and can be traded like the shares of US-based companies.

Financial Term
ADS American Depositary Share
represents ownership in the shares of a non-U.S. company that trades in U.S. financial markets. American Depositary Share representing one underlying Ordinary Share. ADS enable U.S. investors to buy shares in foreign companies without the inconveniences of cross-border & cross-currency transactions. ADS carry prices in US dollars, pay dividends in US dollars, and can be traded like the shares of U

Financial Term
Advised Lines of Credit
An authorization which specifies the maximum amount of a credit facility the Firm has made available to an obligor on a revolving but non-binding basis. The borrower receives written or oral advice of this facility. The Firm may cancel this facility at any time.

Financial Term
AICPA
American Institute of Certified Public Accountants

Financial Term
Allowance For Credit Losses
includes the allowance for loan and lease losses and the reserve for unfunded lending commitments, represents managements estimate of probable losses inherent in the Corporations lending activities. The allowance for loan and lease losses and the reserve for unfunded lending commitments exclude amounts for loans and unfunded lending commitments accounted for under the fair value option as the fair

Financial Term
Allowance For Loan and Lease Losses
The allowance for loan and lease losses represents the estimated probable credit losses in funded consumer and commercial loans and leases while the reserve for unfunded lending commitments, including standby letters of credit (SBLCs) and binding unfunded loan commitments, represents estimated probable credit losses on these unfunded credit instruments based on utilization assumptions. Credit expo

Financial Term
Alt-A Mortgage Loans
Alt-A loans are generally higher in credit quality than subprime loans but have characteristics that would disqualify the borrower from a traditional prime loan. Alt-A lending characteristics may include one or more of the following: (I) limited documentation; (II) high combined-loan-to-value ("CLTV") ratio; (III) loans secured by non-owner occupied properties; or (IV) debt-to-income ratio above n

Financial Term
Amortization
A charge against the companys earnings that represents the write off of intangible assets over the projected life of the assets. Cash Flow

Financial Term