| 341 |
341
is a meeting of creditors in the BK process where
creditors can contest the debtors filing to discharge
debts |
| 1099 |
A classification of income paid
to an individual for performance of services-a form
of self employment |
| Ability |
Ability of the
buyer to afford their obligations--typically measured
in PTI (payment to income) and DTI (debt to income) |
| ACV |
Actual Cash
Value--refers to the true cash
value of a consumer's trade in |
| Advance |
The amount of
money "advanced" (given) on a loan |
| Allotment |
Payment of a debt obligation taken
directly from military personnel monthly income |
| Amortization |
Refers to the
process of dividing a debt obligation over a fixed
period of time--fully amortized pays off over a
fixed period of time |
| Applied for credit |
Buyer applies for credit--compared
to "non-applied" for. Term typically used
in conjunction with derogatory credit |
| Base
Pay |
The amount of
money a buyer makes on their "base" rate--without
over time or bonus |
| Budget |
The comparison of a buyer's debts/obligations
in relation to their income |
| Chapter
11 BK |
Form of BK filed
by businesses |
| Chapter 13 BK |
Form of BK filed by individuals
that restructures debt payments and durations in
order to repay obligations |
| Chaper
7 BK |
Form of BK filed
by individuals that relieves the obligor of the
debt--the debtor no longer owes on their obligations
that are part of the chapter 7 BK |
| Charge Off |
Account designation by a creditor
that reflects an uncollectable debt |
| Child
Support |
Obligation payable
to custody parent for minor age children. Child
support is typically payable until children reach
18 years old |
| Co-Buyer |
Second person applying on credit
application for a loan |
| Collection
account |
An account being
"collected" by a third party. These accounts
have typically been charged off by creditors and
passed to third party companies for collection |
| Consumer Counseling |
One of the numerous companies engaged
in debt restructuring--services negotiate lower
payments, collect debtor funds and distribute payments
to creditors |
| Debt
to Income (DTI) |
Ratio of debts
to monthly gross income. Lower debt ratio generally
represents lower risk |
| Deficiency balance |
The amount of money owed to a creditor
after a repossessed vehicle has been liquidated |
| Discharged
BK |
Final step of
the BK process--concludes the BK filing |
| Dismissed BK |
Formal process initiated to discontinue
the BK process after filing |
| FICO
score |
Stands for Fair
Issac Company.
Patented algorithm licensed to credit bureaus to
calculate a "score" for consumers. Score
is used by credit grantors to evaluate risk |
| Fixed Income |
Type of non-employment income.
Typically SSI or pension income |
| Forebearance |
An agreement
between a mortgage creditor and a buyer to re-amortize
past due monthly payments (past due amount added
to future payments in order to make up back payment(s)) |
| Foreclosure |
Process of a mortgage creditor
re-taking real estate--homes, etc. in order to sell
the asset to satisfy the mortgage debt |
| GAP |
Guaranteed
Asset Protection.
For fee service that forgives loan balance in excess
of the amount paid by an auto insurance company
after insured vehicle total loss |
| High Credit |
The single highest amount of applied
for revolving or installment credit on an applicant's
bureau |
| Installment
account |
A loan obligation
with a fixed monthly payment--auto loans are installment
accounts |
| Invoice Amount |
The amount dealer pays for a new
car |
| Joint
Credit |
One of more pieces
of credit shared by individuals applying for a loan |
| Kelley Blue Book |
Used car valuation guide. Additional
used car value guides: Black Book, NADA |
| Loan
to Value (LTV) |
The amount financed
on the vehicle as a percent of the book value
divided by invoice amount |
| MSRP |
Manufacturers Suggested Retail Price--the price
listed on the window sticker for new cars |
| NADA |
National
Auto Dealers Association.
Term typically refers to used car valuation guide |
| Negative equity |
Contract structure where the amount
owed on a trade in vehicle exceeds the amount shown
for the value of the trade in |
| Non applied
for credit |
Money owed as
a result of an obligation the buyer did not apply
for--ie: balances owed from medical bills, NSF checks,
charged off utility bills, etc. |
| Over allowance |
Occurs when a dealer gives the
buyer more for their trade in than it's actually
worth |
| Past
due |
Scheduled monthly
obligation has not been paid on time |
| Payment to income (PTI) |
The ratio of a buyer's car payment
to their gross monthly income |
| Payoff |
The amount of
money owed on a trade in vehicle |
| Power of attorney |
Legal form allowing one person
to act on behalf of another--typically for a specified
purpose |
| Rebate |
Money given to
consumers (typically reflected on the purchase contract)
by manufacturers for purchasing a specific vehicle |
| Repossession |
Vehicle taken from a consumer by
a creditor and sold to satisfy a loan obligation |
| Residual
value |
The optional "buy out" amount
after the term of a lease expires |
| Revolving account |
A non-amortizing account with a
variable balance and the ability to make varied
payments--credit cards are revolving accounts |
| Salvage
title |
Refers to a vehicle
title that has been "branded" as salvage--caused
by a situation where the vehicle has been severly
damaged and the insurance company has "totaled"
the vehicle |
| Situational credit problems |
Credit problems within a specific
time frame--CPS looks for buyers with situational
credit problems |
| Skip |
An obligor that
can not be located by a creditor. Reported on bureau
as "subscriber can not locate" |
| Stability |
Refers to the buyer's job and residence
time |
| Straw
purchase |
Buying a car
for someone that is not signed on the contract (does
not apply to spouses) |
| Tax liens |
A "lien" established
by the state or federal government caused by an
underpayment of tax obligations |
| TMU |
True
Mileage Unknown.
Condition where a vehicle's odometer has been changed
and the actual miles of the vehicle can not be verified |
| Trade Equity |
The value created by the difference
between the amount given for a trade in vehicle
and the amount owed on the trade in |
| Unearned
income |
Income from sources
other than a job |
| W2 |
Category of wages earned--typically
refers to "employee" wages versus contractor
or service provider wages |
| Willingness |
Indications on
a buyer's credit profile that they have been "willing"
to pay obligations |
|