Tag: funds

Mortgage Broker definition explanation

What is Mortgage Broker?
An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages. A mortgage broker gathers paperwork from a borrower, and passes that paperwork along to a mortgage lender for underwriting and approval. The mortgage funds are then lent in the name of the mortgage lender. A mortgage broker collects an origination fee and/or a yield spread premium from the lender as compensation for its services. Read more for examples and further explanation including related video clips and also comments
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Kiting definition explanation

What is Kiting?
1. The act of misrepresenting the value of a financial instrument for the purpose of extending credit obligations or increasing financial leverage.

2. A fraudulent act involving the alteration or issuance of a check or draft with insufficient funds. Read more for examples and further explanation including related video clips and also comments
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Core Liquidity definition explanation

What is Core Liquidity?
Cash and other financial assets that banks possess that can easily be liquidated and paid out as part of operational cash flows. Examples of core liquidity assets would be cash, government bonds and money market funds. Banks typically use forecasts to anticipate the amount of cash that account holders will need to withdraw, but it is important that banks do not over-estimate the amount of cash and cash equivalents required for core liquidity because unused cash left in core liquidity cannot be used by the bank to earn increased returns. Read more for examples and further explanation including related video clips and also comments
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Asset-Backed Commercial Paper Money Market Fund Liquidity Facility – AMLF definition explanation

What is Asset-Backed Commercial Paper Money Market Fund Liquidity Facility – AMLF?
A lending program created by the Federal Reserve Board on September 19, 2008, that will provide new funding to U.S. financial institutions until October 30, 2009. The Asset-Backed Commercial Paper Money Market Fund Liquidity Facility (AMLF) provides funding that allows financial institutions to purchase asset-backed commercial paper (ABCP) from money market mutual funds (MMMF) to prevent default on investors’ redemptions. Read more for examples and further explanation including related video clips and also comments
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Exhaust Price definition explanation

What is Exhaust Price?
A discount price at which a broker must liquidate a client’s equity position, which was purchased on margin, to meet a margin call. The stocks are sold at the exhaust price when the client cannot provide the funds or refuses to maintain the margin. Read more for examples and further explanation including related video clips and also comments
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