Mortgage and Real Estate Term Glossary – Letters Q & R

QUALITY CONTROL – policies and procedures designed to maintain optimal levels of quality, accuracy and efficiency in the production, selling and servicing of mortgage loans.

QUIT CLAIM DEED – a deed relinquishing all right, title and interest or claim an owner has in a piece of real property. Such a deed implies no warranty.

QUOTE – see rate shopper below. What salespeople tell people to “hook them;” often it’s not what you end up getting! Be sure to ask for a Good Faith Estimate and ask if the lender/banker is willing to put their mortgage rates and fees in writing up front.

RATE SHOPPER – someone, like all of us, who wants VALUE for their buck. Mortgage rates can be different from lender to lender, because of your credit score (which changes daily – see credit score above), the lien position (first or second mortgage,) proposed loan size, dollar amount of real estate appraisal vs. the size of the new proposed loan (Loan-To-Value percentage), property marketability, repair and condition, it’s uniqueness to the neighborhood, your income source(s) and their long term stability, your historic income stream, your past and present credit records, it’s depth, variety and quality, your capacity to be able to repay the loan according to the terms dictated by the lender, and most importantly the overall common sense of your request and the “reason” for the loan (purchasing, re-finance [no cash-out], equity advance, bill consolidation, home improvement etc ). For any mortgage rate quote to even be remotely close to the final number, you need to supply the lender/banker agent with a COMPLETE application and have a three (3) credit bureau merged credit report run on you (and any other applicants) for the lender/banker agent to be able to give you a thorough answer about your eligibility to qualify for a particular rate. It’s NOT one rate fits all in residential real estate mortgage lending. You will probably get a QUICK ANSWER, and it won’t likely be the REAL ANSWER. QUICK IS GREAT FOR HAMBURGERS, BUT NOT FOR CREDIT DECISIONS.

REAL PROPERTY – land and objects permanently attached to it, such as buildings and fences. In some States, this term is synonymous with the term “real estate.”

REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) – a federal statute and regulation promulgated by HUD, governing residential real estate lending practices and disclosures.

RECONCILIATION – the last step in the appraisal process, in which all data are compared and the approaches to value considered to arrive at a final estimate of value.

RECONVEYANCE – an instrument used to transfer title from a trustee to the equitable owner of real estate; used when the performance of debt is satisfied under the terms of a deed of trust.

RECORDING – the filing of documents or details of a legal document to make them a matter of public record. Usually requires the witnessing and notarizing of the document or instrument to be recorded.

RED LINING – arbitrary denial of a residential real estate loan application in certain geographical areas, without considering the individual applicant’s qualifications.

REFINANCING – the repayment of a debt from the proceeds of a new loan, using the same property as security for the new loan. Refer to our home mortgage refinancing section for more information.

REGULATION B – Federal Reserve regulation prohibiting discrimination against consumer credit applicants, and establishing guidelines for collecting and evaluating credit information.

REGULATION Z – Regulation written by the Federal Reserve Board to implement the Federal Truth-In-Lending Act, requiring full written disclosures of the credit portion of all consumer loans, including annual percentage rate (APR) etc.

REHABILITATION – restoration of a parcel of real property, or neighborhood to bring it back to its full (highest & best) potential use.

REINSTATEMENT – the curing of all loan defaults by a borrower, to return it to a current status.

RELEASE OF LIABILITY – an agreement by a lender to terminate personal obligation of a mortgagor in connection with payment of a debt.

RELEASE OF LIEN – an instrument discharging secured property from a lien.

RENT CONTROL – legal limitations on rent increases.

REPLACEMENT COST – the money required to replace a building structure, with one of equivalent value and function, but not necessarily identical in design or materials.

REPRODUCTION COST – the cost required to reproduce a building using the same or equivalent materials, design and construction methods, less an allowance for depreciation. An element of the cost approach method of appraisal.

RESCISSION – the cancellation of a transaction or contract by law or by mutual consent.

RESTRICTIVE COVENANT – a clause in a deed that denies the buyer full rights to the property in question.

RIDER – an addendum or amendment to a written contract.

RULE OF 78TH’S – a mathematical method used by a lender, usually on installment loans, for calculating an interest rebate on a loan paid off or refinanced prior to its maturity date, also known as the United States Rule.