Reverse Mortgage Financial Assessment
A review of the borrower’s credit history, employment history, debts and income during the reverse mortgage application process. The reverse mortgage financial assessment requirement became effective in 2015 after years of problems with borrowers being unable to afford to stay current on their property tax and homeowners insurance bills. The result of this financial instability was that borrowers were losing their homes to foreclosure and lenders were filing insurance claims with the Federal Housing Administration to cover their losses on these loans. The reverse mortgage financial assessment is intended to prevent this problem from occurring.
Today's Law Jargon
De Facto Corporation
n. a company which operates as if it were a corporation although it has not completed the legal steps to become incorporated (has not filed its articles, for example) or has been dissolved or suspended but continues to function. The court temporarily treats the corporation as if it were legal in order to avoid unfairness to people who thought the corporation was legal.
Today's Engineering Jargon
Erosive wear caused by the relative motion of solid particles which are entrained in a fluid, moving nearly parallel to a solid surface.