Glossary

a | b | c | d | e | f | g | h | i | j | k | l | m | n | o | p | q | r | s | t | u | v | w | x | y | z

 

N

 

Non Conforming
Not following established customs or doctrines

 

Non Conforming Lender
These types of lenders are saying that a household should spend not more than about one-half of its income (50%) on housing and not more than about two-thirds of its income (60%) on total indebtedness (housing and other debts). Lenders feel that if they follow these guidelines, homeowners will be able to pay off their mortgages fairly comfortably and lenders will not have to worry about loan defaults and foreclosures.

 

Non Conforming Lending
Lending which provide loans that fails to meet bank criteria for funding.

 

Non Conforming Loan
Loan which does not meet the standards of the lender. opposite of conforming loan.

 

Non Conforming Mortgage
A mortgage that does not meet the purchase requirements of the two Federal agencies, Fannie Mae and Freddie Mac, because it is too large or for other reasons such as poor credit or inadequate documentation.

 

Non Prime Loans
Subprime lending (also: B-Paper, B-tier, non-prime, near-prime, special finance, second chance lending) describes loans to customers having a credit score below 620.[1] Typically, subprime customers are those who do not qualify for prime market rates because of a blemished or limited credit history. Subprime customers are therefore charged a higher interest rate, to compensate for the increased probability of future default. Subprime loans are riskier loans in that they are made to borrowers unable to qualify under traditional, more stringent criteria due to a limited or blemished credit history. Subprime borrowers are generally defined as individuals with limited income or having FICO credit scores below 620 on a scale that ranges from 300 to 850. Subprime loans have a much higher rate of default than prime loans and are priced based on the risk assumed by the lender.