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labor market information
Employment and industry trends.
labor-oriented industry
Labor-oriented industries are sectors that rely heavily on human labor rather than automation or machinery for production and operations. These industries typically require a large workforce to perform tasks that are often manual, intricate, or service-based, such as in agriculture, textiles, construction, and hospitality. The success and efficiency of labor-oriented industries are closely tied to the availability, skill level, and productivity of their workers.
laches
A lack of diligence and activity in making a legal claim, or moving forward with legal enforcement of a right. It is an unreasonable delay in the plaintiff asserting its claims. The person invoking a laches defense is asserting that the plaintiff has “slept on its rights”, and that, as a result of this delay, circumstances have changed to such a degree that to grant the plaintiff’s claim would not be a proper resolution.
lactic acid
A hygroscopic organic acid C3 H6 O3 present normally in tissue, produced from protein metabolism when the body experiences oxygen debt. (See metabolism, oxygen debt)
laissez-faire
French for ‘leave alone,’ laissez-faire is an economic theory that the less government involvement in free market capitalism, the better off business will be, and by extension society as a whole. (See capitalism)
laissez-faire leadership
A hands-off leadership style in which the leader allows group members to make the decisions. This is a leadership style that often leads to the lowest productivity among group members.
land
The earth’s surface, extending downward to the center of the earth and upward infinitely into space, including things permanently attached by nature, such as trees and water. (See land contract, subsurface rights, surface rights, air rights)
land contract
A land contract is a real property sales contract whereby the seller is the lender. The seller retains actual title until the entire debt is paid off. (See contract for deed, installment sales contract)
land development
The improvement of land with utilities and services, making the land more suitable for resale as building plots for housing or other purposes.
land development method
A method of valuing land to be used for subdivision development. It relies on accurate forecasting of market demand, including both forecast absorption (the rate at which properties will sell) and projected gross sales (total income that the project will produce); also called the subdivision development method.
land residual technique
A method of capitalization using the net income remaining to the land after return on and recapture of the building value have been deducted.
land trusts
A few states permit the creation of land trusts, in which real estate is the only asset. As in all trusts, the title to the property is conveyed to a trustee, and the beneficial interest belongs to the beneficiary. In the case of land trusts, however, the beneficiary is usually also the trustor. While the beneficial interest is personal property, the beneficiary retains management and control of the real property and has the right of possession and the right to any income or proceeds from its sale.
One of the distinguishing characteristics of a land trust is that the public records usually do not name the beneficiary. A land trust may be used for secrecy when assembling separate parcels. There are other benefits as well. A beneficial interest can be transferred by assignment, making the formalities of a deed unnecessary. The beneficial interest in property can be pledged as security for a loan without having a mortgage recorded. Because the beneficiary’s interest is personal, it passes at the beneficiary’s death under the laws of the state in which the beneficiary lived. If the deceased owned property in several states, additional probate costs and inheritance taxes can be avoided.
land use controls
Methods of regulating the uses to which a given land area may be put, including such things as zoning, subdivision regulation, and floodplain regulation, etc.
land-employment density
Land-employment density refers to the number of jobs or employees situated within a specific area of land, typically measured in employees per acre or per square mile. This metric helps assess the intensity of economic activity and land use efficiency in a given area. High land-employment density indicates a concentration of workplaces and businesses, which can influence infrastructure planning, transportation needs, and urban development strategies.
landfill
A landfill is an enormous hole, either excavated for the purpose of waste disposal or left over from a surface mining operation. The hole is lined with clay or a synthetic lining to prevent leakage of waste into the surrounding water supply. Waste is laid on the liner at the bottom of the landfill and a layer of topsoil is then compacted into the waste. The layering is repeated again and again until the landfill reaches its full capacity.
landlord
The lessor or the owner of leased premises. The landlord retains a reversionary interest in the property, so that when the lease ends the property will revert to the landlord. (See lease, lessor, lessee)
Landlord-Tenant Law Overview
landlord’s lien
A landlord’s lien is a legal right granted to landlords to seize a tenant’s property and retain it as security for unpaid rent or other breaches of the lease agreement. This lien allows the landlord to either hold onto the property until debts are paid or to sell the property to recover the owed amounts. The specific rules and enforceability of a landlord’s lien vary by jurisdiction, and some regions require a court order before property can be seized under such a lien.
large and growing communities – Arizona Definition
Jurisdictions that meet either of the following two conditions: (1) a population of 2,500 or more with an annual growth rate averaging 2% or more for the 10 year period of the most recent census, or (2) a population of 10,000 or more. In calculating population totals and growth rates, the statutes direct communities to use the most recent U.S. decennial census.
latent defect
A hidden structural defect that would not be discovered by ordinary inspection and that threatens the property’s soundness or the safety of its inhabitants. Some states impose on sellers and licensees a duty to inspect for and disclose latent defects. Buyers have been able to either rescind the sales contract or receive damages when a seller fails to reveal known latent defects. The courts have also decided in favor of the buyer when the seller neglected to reveal violations of zoning or building codes.
lateral support
Lateral support is a concept in real estate and civil engineering that refers to the natural or artificial support that a parcel of land receives from adjoining properties. This support is necessary to keep the land stable and prevent it from shifting or collapsing. Lateral support can be particularly important when land is situated on a slope or when there are construction projects near property boundaries. (See subjacent support)
lath and plaster
Lath and plaster is a method of interior wall finishing used in older homes in which wet plaster is applied to a framework of wood slats, called laths, and wire.
latitude
Distance on the earth’s surface, measured northward or southward from the equator measured in degrees of the meridian; angular distance reckoned on a meridian. (See longitude, meridian)
law of agency
A fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be his or her agent. (See agent, fiduciary)
law of decreasing returns
The principle that there is a point after which improvements to land and structures no longer will result in a corresponding increase in the property’s income or value.
law of increasing returns
The principle that there is a point after which improvements to land and structures will produce a proportionate or greater increase in the property’s income or value.
lawful object
Contract performance that does not violate any laws; and is a requirement for a valid contract.
laws of descent
A succession of a property to the heirs when a person dies without a will.
leach
Water that collects contaminants as it trickles through wastes, pesticides, or fertilizers. Leaching may occur in farming areas, feedlots, and landfills, and may result in hazardous substances entering surface water, ground water, or soil.
lead
Lead is an element that was once used as a pigment and drying agent in paint. An elevated level of lead in the body can cause serious damage to the brain, nervous system, kidneys and red blood cells. The degree of harm is related to the amount of exposure and the age at which a person is exposed. The Federal government estimates that lead is present in about 75 percent of all private homes in the United States built before 1978.
lead-based paint
Paint, no longer allowed for use in buildings or products, that contains lead. Information on lead found in paint, dust, and soil is available at www.epa.gov/lead.
Lead-Based Paint Hazard Reduction Act
Federal legislation requiring disclosure of the presence of any known lead-based paint hazards to potential buyers or renters. The law does not require that anyone test for the presence of lead-based paint, however.
leadership
The ability to lead; the function of a leader, a person who guides or directs a group.
Leadership in Energy and Environmental Design
A rating system designed by the U.S. Green Building Council to promote construction practices that increase profitability while reducing the negative environmental impacts of buildings and improving occupant health.
lease
An agreement, written or unwritten, transferring the right to exclusive possession and use of real estate for a definite period of time. To create a valid lease, the lessor must retain a reversionary right; that is, the lessor (landlord) must grant the right of possession to the lessee (tenant) but retain the right to retake possession after the lease term has expired. (See landlord, tenant)
lease agreement
A written agreement between an owner/landlord and their residents/tenants that states the lease term, amount, security deposit, rules, etc. Consider using the Association of REALTORS® lease, or the Apartment Building Owners Association lease, plus whatever addendums are needed or legally required.
lease assignment
Transfer of leasehold interest by tenant to another party, with first tenant secondarily liable for lease obligations unless landlord agrees to a release of first tenant from those responsibilities. (See lease)
lease option
A lease under which the tenant has the right to purchase the property either during the lease term or at its end. (See lease)
lease purchase
The purchase of real property, the consummation of which is preceded by a lease, usually long-term. Typically done for tax or financing purposes. (See lease)
lease renewal
A lease renewal refers to the process by which a lease agreement is extended beyond its original end date, allowing the tenant to continue occupying the rental property. This renewal can occur through a formal agreement that may involve signing a new lease with potentially revised terms, or it can be automatic based on the provisions originally outlined in the lease agreement. Typically, lease renewals involve negotiations over terms such as rent amounts, lease duration, and other conditions, and they require the mutual consent of both the landlord and the tenant.
leaseback
A transaction in which an owner sells his or her improved property and, as part of the same transaction, signs a long term lease to remain in possession of the premises.
leased fee estate
The lessor’s interest and rights in the real estate being leased.
leasehold estate
The right to hold or use property for a fixed period of time at a given price, without transfer of ownership, on the basis of a lease contract. A leasehold is a fixed asset. (See lease)
leasehold lending
Loans on a leased property with satisfaction dates usually 10 to 20 years prior to the expiration of the lease. (see lease)
leasing agent
A leasing agent’s main responsibility is to lease units in apartments, homes, or commercial properties. They focus on attracting tenants to fill vacancies. A leasing agent differs from a property manager in that a property manager oversees the daily operations of a rental property. Their responsibilities extend beyond leasing to include comprehensive management tasks that ensure the property is well-maintained and profitable over time.
ledger sheet
Before accounting for all funds, payments, and credits, the escrow holder accounts for these monies on the ledger sheet, indicating individual receipts and disbursements that are then transferred to the settlement statement. (See escrow holder)
legacy
A disposition of money or personal property by will.
legal capacity
Person who is an adult or emancipated minor and mentally competent to enter into a contract. (See emancipated minor)
legal description
A description of a specific parcel of real estate complete enough for an independent surveyor to locate and identify it. (See government survey system, lot and block system, metes and bounds system)
legal life estate
A legal life estate is not created voluntarily by an owner. Rather, it is a form of life estate established by state law. It becomes effective automatically when certain events occur. (See life estate)
legal title
Refers to the ownership or rights associated with a particular piece of real estate. It represents the lawful ownership and possession of the property, indicating that the holder has the right to use, sell, or transfer the property as they see fit, within the boundaries of the law. Having a legal title also means that the owner has certain responsibilities and liabilities associated with the property. See fee simple
legally competent parties
People who are recognized by law as being able to contract with others; those of legal age and sound mind.
legatee
A person who receives money or personal property under a will.
legislative history
Legislative history includes any of various materials generated in the course of creating legislation, such as committee reports, analysis by legislative counsel, committee hearings, floor debates, and histories of actions taken. Sometimes the legislative history can help resolve an uncertainty as to what a legislature intended at the time of enactment.
legislative intent
Legislative history includes any of various materials generated in the course of creating legislation, such as committee reports, analysis by legislative counsel, committee hearings, floor debates, and histories of actions taken. Sometimes the legislative history can help resolve an uncertainty as to what a legislature intended at the time of enactment.
legitimate government interest
A governmental action that is a reasonable means to an end that may be legitimately pursued by the government. State action or leglislation (whether administrative or procedural) must have a rational basis. In other words, without the legislation, the rights of the public or a particular person might be violated under the U.S. Constitution’s Fourteenth Amendment’s Equal Protection Clause. The reasoning behind the action must not be arbitrary.
lender
A lender is a mortgage banker or an exempt organization.
lender
Lender means an entity that originated five or more home mortgage loans within the past 12-month period or acted as an intermediary between originators and borrowers on five or more home mortgage loans within the past 12-month period. This is provided that lender does not include a person who is an attorney providing legal services in association with the closing of a home loan who is not also funding the home loan and is not an affiliate of the lender.
lender
A lender is a mortgagee and/or servicing agent of the mortgagee, provided the servicing agent is bound by the requirements approved by the mortgagee.
Lender 3 C
1) Credit – your past payment history and FICO score; 2) Capacity – your income less your monthly debts vs. your maximum housing payment 3) Collateral – the value of the property you are buying verified by an independent appraisal.
lender’s escrow instructions
A lender’s written instructions to the escrow company stating the conditions which must be met before the deed of trust can be recorded. (See escrow instructions)
lending institution
A lending institution is any bank, bank and trust company, trust company, savings bank, national banking association, federal national mortgage association, approved mortgage banker, FHA-approved mortgage service company, savings and loan association, federal savings and loan association, building and loan association, credit union, or other financial institution that customarily provides service or otherwise aids in the financing of mortgages on residential housing.
lessee
The person to whom property is rented or leased; called a tenant in most residential leases. (See tenant)
lessor
The person who rents or leases property to another. In residential leasing, he or she is often referred to as a landlord. (See landlord)
letter of concern
An advisory letter to notify a licensee that, while the conduct or evidence does not warrant other disciplinary action, the commissioner believes that the licensee should modify or eliminate certain practices and that continuation of the activities may result in further disciplinary action against the licensee.
letter of concern
An advisory letter to notify a licensee that, while the conduct or evidence does not warrant other disciplinary action, the commissioner believes that the licensee should modify or eliminate certain practices and that continuation of the activities may result in further disciplinary action against the licensee.
letter of engagement
A communication to an appraiser that includes a request to perform a specified appraisal assignment.
leverage
Using someone else’s money to purchase a property. Refers to the ability to use the investment as collateral for a loan.
levy
To assess, seize or collect. To levy a tax is to assess a property and set the rate of taxation. To levy an execution is to officially seize the property of a person in order to satisfy an obligation.
LI-214/244 (AZ)
The LI-214/244 form is the disciplinary actions disclosure form, on which the candidate must disclose past convictions or criminal history. LI-214/244
liability
1. Legal responsibility for an act. 2. A debt. (See joint and several liability, retroactive liability, strict liability)
liability insurance
An insurance policy that protects an individual or business from the risk of being sued and held legally liable for malpractice, injury or negligence. Liability insurance policies cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable. Intentional damage and contractual liabilities are typically not covered in these types of policies.
license
The revocable permission for the temporary use of land—a personal right that cannot be sold.
license
1. A license provides permission to enter onto the land of another for a specific purpose and/or length of time. 2. The revocable permission for a temporary use of land — a personal right that cannot be sold.
license
A license is a license issued by the department to act as a mortgage loan originator, mortgage lender, or mortgage broker.
license (New Mexico)
A license is a license issued pursuant to the New Mexico Mortgage Loan Originator Licensing Act.
license-in-referral organizations (LIFROs)
License-in-referral organizations (LIFROs) are licensed brokerage firms that hire licensed salespeople. These hires don’t actually engage in sales activities. Instead, they provide referrals that the LIFRO passes on to the affiliated brokerage firm. LIFROs are a way to attract or retain salespeople who don’t meet a company’s full-time criteria but can contribute by referring business.
licensed activity (AZ)
Licensed activities means any act in consideration or expectation of compensation which is included in the definition of salesperson, or real estate broker.
licensee
Any person or entity that is granted a broker’s license or salesperson’s license by the state real estate licensing agency.
licensee
A licensee is any person who is licensed by the commissioner as a mortgage lender or mortgage broker.
lien
A charge or claim that one person (lienor) has on the property of another (lienee) as security for a debt or obligation. (See general lien, involuntary lien, mechanics’ lien, statutory lien, tax lien, voluntary lien)
lien release
Filed by holder of a lien to voluntarily remove the encumbrance from the property owner’s title. (See encumbrance, lien.)
lien release bond
Filed with the county recorder by a property owner who disputes the correctness or validity of a mechanic’s lien to stop foreclosure of the property; must be in an amount equal to 150 percent of either the entire claim against the property or the portion of the claim allocated to the parcel(s) sought to be released; can also be filed by anyone having an interest in the property or by any other lienholder affected by the claim. (See lien, lien release
lien theory
Lien theory states are states that interpret a deed or trust loan as being purely a lien on real property, without the lender having any actual title interest.
lien waiver
Documents signed by subcontractors and suppliers, indicating they have received payment in full.
life cap
A life cap is a restriction or limitation on the amount by which interest rates or payments can change over the life of the loan.
life cycle
The life cycle are the stages in the life of a product or company. It is a pattern of demand for a good or service from introduction, growth, stagnation, and decline.
life cycle costing
In property management, comparing one type of equipment to another based on both purchase cost and operating cost over its expected useful lifetime.
life cycle of property
Four stages through which a property will pass: growth, equilibrium, decline, revitalization (GEDR).
life estate
Any estate in real or personal property that is limited in duration to the life of its owner or the life of some other designated person. Although classified as a freehold estate because it is a possessory estate of indefinite duration, a life estate is not an estate of inheritance. For example, Bob Smith conveys his home to his son John and reserves a life estate for himself. Bob (the life tenant) has a life estate, and John has a reversionary interest in the property. When Bob Smith dies, the fee simple property reverts to John. (See freehold estate)
life safety control center operator
In property management, a Life Safety Control Center Operator is responsible for monitoring and managing a building’s life safety systems, such as fire alarms, emergency lighting, and security systems. They ensure all safety protocols are followed and coordinate emergency responses. Their role is crucial in maintaining a safe environment for occupants and responding effectively to emergencies.
life tenant
A person in possession of a life estate. (See life estate)
lifetime adjustment cap
The cap that indicates how much the interest rate can increase, in total, over the life of the loan.
Lifework Book Club
Group of people who meet regularly to explore job search and employability issues that are discussed in books read by the members.
lifting clause
A provision in a junior mortgage that allows the underlying senior loan to be replaced or refinanced so long as the amount of the new senior loan does not exceed the amount of the first lien outstanding at the time the junior loan was made. (See junior mortgage, senior loan, subordination agreement)
like kind
A term relating to the nature of a property rather than its quality or quantity. Only like kind properties qualify for a real estate exchange and the resulting tax benefit. (See exchange)
limited equity housing cooperative
A stock cooperative financed by the California Housing Finance Agency. California Housing Finance Agency
limited liability company (LLC)
LLCs are a relatively recent form of business organization. An LLC combines the most attractive features of limited partnerships and corporations. The members of an LLC enjoy the limited liability offered by a corporate form of ownership and the tax advantages of a partnership. In addition, the LLC offers flexible management structures without the complicated requirements of S corporations or the restrictions of limited partnerships. The structure and methods of establishing a new LLC, or of converting an existing entity to the LLC form, vary from state to state. (See corporation, partnership)
limited partnership
Consists of one or more general partners as well as limited partners. The business is administered by the general partners and funded, for the most part, by limited or silent partners. Each limited partner can be held liable for business losses only to the extent of his or her investment. (See general partner, partnership, passive income)
Uniform Limited Partnership Act
limited representation
Real estate licensing laws permit limited representation only if the buyer and seller are informed and consent to the brokerage’s representation of both in the same transaction. Although the possibility of conflict of interest still exists, disclosure is intended to minimize the risk for the brokerage by ensuring that both principals are aware of the effect of limited representation on their respective interests. The disclosure alerts the principals that they may have to assume greater responsibility for protecting their own interests than they would if they had independent representation.
limits to growth
The belief that there are natural limits to possible growth which if exceeded will lead to environmental catastrophe.
line authority
An official authority to issue orders to subordinates within an organization. For example, sales managers empowered with line authority typically have the responsibility of achieving company business goals with the greatest possible efficiency.
line of credit
An amount of money stipulated by a commercial bank to an active customer on an annual basis. The balance normally must be brought to zero on an agreed upon regular date. (See commercial bank)
lipids
Any of various substances including fats, waxes, phosphatides, cerebrosides, and related and derived compounds that with proteins and carbohydrates constitute the principal structural components of living cells. (See carbohydrates, protein)
liquefaction
A phenomenon which occurs during an earthquake whereby the ground/soil turns into a highly unstable, jelly-like substance.
liquid crystal display (LCD)
A screen type used for flat screen displays including notebook computers and flat screen displays.
liquidated damages
An amount predetermined and agreed by the parties to an agreement as the total amount of compensation an injured party should receive if the other party breaches a specified part of the contract. (See damages)
liquidity
Refers to the time it takes to convert an asset to cash that is a reflection of its market value. (See market value)
lis pendens
A recorded legal document that gives constructive notice that an action affecting a particular piece of property has been filed in a state or federal court. Lis pendens is Latin for “action pending’ and is in the nature of a “quasi lien.” A person who subsequently acquires an interest in that property takes it subject to any judgment that may be entered; that is, a purchaser pending a lawsuit is bound by the result of the lawsuit.
listing agreement
A written employment agreement between a property owner and a real estate broker authorizing the broker to find a buyer or a tenant for certain real property. Listing can take the form of open listings, net listings, exclusive-agency listings, or exclusive-right-to-sell listings. The most common form is the exclusive-right-to-sell listing. (See exclusive-agency listings, exclusive-right-to-sell listing, net listings, open listings)
listing broker
The broker in a multiple-listing situation from whose office a listing agreement is initiated, as opposed to the cooperating broker, from whose office negotiations leading up to a sale are initiated. The listing broker and the cooperating broker may be the same person. (See listing agreement)
listing presentation manual
Used by real estate brokerages to make presentations to listing prospects. A visual aid used in combination with a verbal presentation made by a real estate agent.
listserv
A free service available on the Internet that is like a forum that allows users to discuss a subject via e-mail.
littoral rights
The rights of a landowner whose land borders a pond, lake or ocean shore-line where the body of water is non-flowing. Littoral rights extend to the mean high watermark of ocean or tidal waters. (See riparian rights, water rights)
livery of seizin ceremony
A ceremonial and legal conveyancing ceremony, formerly practiced in feudal England and in other countries following English common law. It was used to convey holdings in property. The term ‘livery’ is related, if not synonymous with, the word ‘delivery as used in modern contract law. The common law in those jurisdictions once provided that a valid conveyance of a feudal tenure in land required the physical transfer by the transferor to the transferee, in the presence of witnesses, of a piece of the ground itself, in the literal sense of a hand-to-hand passing of an amount of soil, a twig, key, or other symbol. Livery of seisin could refer to either livery in deed, whereby the parties actually went on to the land, and the transferor symbolically delivered possession of the land by handing over a twig or a clump of earth to the recipient, or livery in law, whereby the parties went within sight of the land and the transferor declared to the recipient that possession was being given, followed by the recipient entering onto the land.
living document
A living document or dynamic document is a document which may be continually edited and updated by an authorized person or either a limited or unrestricted group.
living trust
An arrangement in which a property owner (trustor) transfers assets to a trustee who assumes specified duties in managing the asset. After payment of operating expenses and trustee’s fees, the income generated by the trust property is paid to or used for the benefit of the designated beneficiary.
load-bearing wall
A wall that provides necessary support to the ceiling joists above it.
loan
Money borrowed that is usually repaid with interest.
loan application
A lender’s initial sourse of information on a borrower/applicant and the collateral involved; stipulates the amount of money requested and repayment terms.
loan broker listing
A mortgage loan broker’s contract with a buyer to obtain a loan.
loan commitment
A loan commitment or commitment is a statement by the lender setting forth the terms and conditions upon which the lender is willing to make a particular mortgage loan to a particular borrower.
loan constant
The annual payment required per dollar of a mortgage loan, including principal and interest.
loan documents
Documents prepared by a lender in conjunction with granting the loan to the borrower; may include a promissory note, deed of trust, and required loan disclosure documents.
loan estimate
The loan estimate provides disclosures that will be helpful to consumers in understanding the key features, costs, and risks of the mortgage loan for which they are applying.
loan fees
Also called loan origination fees. Costs charged by a lender for giving out a loan; may include points, tax service fees, an appraisal fee, etc. (See loan origination fee)
loan fraud
Purposely giving incorrect information on a loan application in order to better qualify for a loan; may result in civil liability or criminal penalties.
loan guaranty program
A Department of Veterans Affairs (VA) benefit program that provides assistance to Veterans, certain spouses, and Servicemembers to enable them to buy and retain homes. Assistance is provided through VA’s partial guaranty of loans made by private lenders in lieu of the substantial down payment and private mortgage insurance required in conventional mortgage transactions. This protection means that in most cases qualified Veterans can obtain a loan without making a down payment.
loan modification
According to HUD, loan modification is a permanent change in one or more of the terms of a mortgagor’s loan, allowing the loan to be reinstated, resulting in a payment the mortgagor can afford, not including a refinancing transaction.
loan origination fee
The processing of a mortgage application is known as loan origination. When a mortgage loan is originated, a loan origination fee, or transfer fee, is charged by most lenders to cover the expenses involved in generating the loan. These include the loan officer’s salary, paperwork and the lender’s other costs of doing business. Any payment for processing mortgage loan applications must be included in the fee and must be paid to the mortgage broker.
loan originator
A loan originator is an individual who, for compensation or gain, directly or indirectly: solicits or offers to solicit a mortgage loan; accepts or offers to accept an application for a mortgage loan; negotiates or offers to negotiate the terms or conditions of a new or existing mortgage loan on behalf of a borrower or lender; processes a mortgage loan application; or negotiates or offers to negotiate the sale of an existing mortgage loan to a noninstitutional investor. The term includes the activities of a loan originator as defined in the SAFE Mortgage Licensing Act of 2008. It does not include an employee of a mortgage broker or mortgage lender who performs only administrative or clerical tasks, including quoting available interest rates, physically handling a completed application form, or transmitting a completed form to a lender on behalf of a prospective borrower.
Loan Originator (Arizona definition)
- A natural person, employed by a mortgage broker, or a mortgage banker, or a consumer lender, who either takes a residential mortgage loan application for a mortgage broker, a mortgage banker, or a consumer lender or offers or negotiates terms of a residential mortgage loan for direct or indirect compensation or gain or in the expectation of direct or indirect compensation or gain; or
- a person who claims to the public the ability to perform any of these activities.
Loan Originator does not include:
- a person who performs purely administrative or clerical tasks and who is employed by a mortgage broker, mortgage banker, or consumer lender;
- an individual engaged solely as a loan processor or underwriter except as provided in A.R.S. section 6-991.02.
loan packing
Loan packing occurs when a financing package includes charges for items not revealed to the borrower/buyer. The charges are added to the base cost of the item being purchased and included in the loan without telling the borrower/buyer.loan principal
Loan principal refers to the original sum of money that was borrowed and that must be repaid, excluding any interest or fees that may accrue over time. The principal amount is the initial amount of the loan that the borrower receives from the lender. When making payments on a loan, a portion of the payment typically goes toward reducing the principal balance, while another portion goes toward paying the interest that has accumulated on the remaining balance.loan processing
Loan processing is the submission of the loan application, and verifications of employment and deposit, credit report, property appraisal, and other documents to underwriting where the decision to approve or reject the loan will be made.loan processor or underwriter
A loan processor or underwriter is an individual who performs clerical or support duties as an employee at the direction of, and subject to the supervision and instruction of, a person licensed, or exempt from licensing, under the Mortgage Loan Company Act.loan processor or underwriter
A loan processor or underwriter is an individual who performs clerical or support duties as an employee at the direction of, and subject to the supervision and instruction of, a person licensed, or exempt from licensing, provided that the person may not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual is licensed or otherwise authorized by law to perform any of the activities of a mortgage loan originator, or that the person intends to perform any of the activities of a mortgage loan originator.loan processor or underwriter
A loan processor or underwriter is an individual who performs clerical or support duties as an employee at the direction of, and subject to the supervision and instruction of, a person licensed or exempt from licensing.Loan Prospector®
Loan Prospector is an automated underwriting system (AUS) developed by Freddie Mac, one of the major government-sponsored enterprises (GSEs) in the United States along with Fannie Mae. It serves a similar function to Fannie Mae’s Desktop Underwriter (DU) but is tailored to align with Freddie Mac’s specific guidelines and criteria.loan servicing transfer statement
A disclosure required of loan servicers by a lender if the lender intends to sell or assign the right to service a loan to that loan servicer. The loan servicer must notify the borrower 15 days before the effective date of the loan transfer, including in the notice the name and address of the new servicer, toll-free telephone numbers, and the date the new servicer will begin accepting payments.loan term
The loan term is the length of time before the mortgage loan is due to be repaid in full. Most mortgage loans have 15, 20, or 30-year terms.loan yield
A loan yield is the annual rate of return obtained by a residential mortgage lender from a residential mortgage debtor over the term of the loan and must be determined in accordance with regulations issued by the secretary of banking. The regulations establish the method for calculating the rate of return and provide that the finance charge be amortized over the contract term of the loan. In computing loan yield on any mortgage that does not require the full amount of the first year’s interest to be paid during the first year and on a variable interest rate mortgage, interest must be calculated at the rate applicable to the first year of the mortgage.loan-to-value ratio
The relationship between the amount of the loan and the value of the real estate being pledged as collateral. For example, the loan amount could be $80,000, compared to a value or price of the property of $100,000 value. In this case the LTV is 80% – $80,000 loan amount divided by $100,000 property value.local area network (LAN)
Computers that are in relatively close proximity and connected over a network.Local ordinance compliance report
local public authority
The city council, board of supervisors, planning commission, city or county manager, or community development/planning director.lock
To guarantee a rate quote for a specified length of time. The lock protects the borrower from rising interest rates, but also commits the borrower to rates even if rates decline.lock-in agreement
A lock-in agreement is an agreement whereby the lender guarantees, for a period of days or until a specified date, the availability of a specified rate of interest or specified formula by which the rate of interest will be determined, or specific number of discount points that will be given, if the loan is approved and closed within the stated period of time.lock-in clause
A lock-in clause is a provision in a contract or agreement that restricts the ability of one or both parties to terminate or withdraw from the agreement for a specified period of time. These clauses are commonly found in various types of contracts, such as loans, mortgages, investment agreements, or employment contracts.long term secular trends
Economic changes that occur over an extended period of time (decades).long-lived items of depreciation
Individual components of a structure that are not expected to be replaced over the structure’s useful life. Foundation, framework, walls, ceilings, and masonry would fall within this category.long-range plan
Upper management usually defines the long-range plan. Long-range planning begins with the current status and charts out a path to a projected status, and generally includes short-term (operational or tactical plans) for achieving interim goals.longitude
Distance measured east or west on the earth’s surface, measured by the angle which the meridian through a place makes with some standard meridian, as that of Greenwich, Great Britain or Paris, France. Longitude may be measured in time (longitude in time) or in degrees (longitude in arc). (See latitude, meridian)loss of use/additional living expenses coverage
Money paid to an insured in a loss if they can’t live in their home and need to rent another residence.lot books
Catalogs maintained by title and abstract companies listing properties by location and showing deeds and other documents affecting title.lot, block, tract (recorded plat) system
A method of describing real property that identifies a parcel of land by reference to lot and block numbers within a subdivision, as specified on a recorded subdivision plat map. (See legal description, subdivision)low and moderate income persons or families
Low income persons or families and moderate income persons or families are families and persons who cannot afford to pay the amounts at which private enterprise, without assistance, is providing a substantial supply of decent, safe, and sanitary housing. The income limits for the admission of these families and persons to projects will be those established pursuant to the rules and regulations established by the Pennsylvania Housing Finance Agency.low flame spread rating
In property management, a low flame spread rating indicates that a building material resists the spread of fire across its surface. This rating is crucial for ensuring the material contributes minimally to fire growth, enhancing overall fire safety. It is an important consideration in selecting materials for construction and renovation to comply with safety regulations and protect occupants.low quality, bad area, poor tenant credit, bad condition property
Generally these are properties that sound too good to be true and usually turn out to be too good to be true. When you pencil out a deal in a bad or rundown area of town, you’ll be amazed at how high the rents are compared to the purchase price. You might pencil out a 15% or 20% cash on cash deal. But you’ll never achieve that when the year comes to an end. Bad areas often have low credit quality and high hassle tenants. You might have to chase down rent, deal with short term vacancy, tenants move out and take the appliances, etc. – so beware when a deal pencils out as too good to be true.low rentals
Low rentals are rent charges at least 10 percent lower than moderate rentals.low-e glazings
Low-e glazings have special coatings that reduce heat transfer through windows. This type of window film is inexpensive, lasts 10-15 years, reduces interior fading, and saves energy.loyalty
The duty of loyalty requires the agent to place the principal’s interests above those of all others, including the agent’s own self-interest. The agent must be particularly sensitive to any possible conflicts of interest. Confidentiality about the principal’s personal affairs is a key element of loyalty.lymph
A pale coagulable fluid that bathes the tissue, passes into lymphatic channels and ducts and is discharged into the blood via the thoracic duct and that consist of a liquid portion resembling blood plasma and containing lymphocytes, white blood cells (but normally no red blood cells); circulation depends on the systemic contractions of the voluntary muscles.lymph node
One of the rounded masses of lymphoid tissue surrounded by a capsule of connective tissue that occur in association with the lymphatic vessels that act as filters for the lymph and delivery points for lymphocytes.lymphatic system
The system of vessels, glands, fluid, and lymphocytes concerned with the elimination of metabolic waste and defense against chemical and pathological imbalance in the body.lymphocyte
A colorless, weakly motile macrophage cell produced in lymphoid tissue that is the typical cellular element of lymph.