Glossary of Terms
Uncollected Funds - That part of the members' balance for which checks deposited have not cleared for payment.
Underwriting - The process of analyzing a loan application to determine the amount of risk involved in making the loan; it includes a review of the potential borrower's credit history and ability to pay the mortgage, and a judgment of the property value.
Uniform Residential Loan Application - A standard mortgage application that your lender will ask you to complete. The form requests your income, assets, liabilities and a description of the property you plan to buy, among other things.
Uniform Settlement Statement (“HUD-1”) - Is provided to the borrower upon the closing of the loan and sets forth the final settlement charges paid both to and by the borrower.
Unit Trusts - A collection of securities, usually bonds, packaged by brokers and sold to investors.
Unsecured Debt - A debt that does not involve collateral. This type of debt is the result of money owed, for example, to a credit card company, who cannot seize any of the consumer's possessions if s/he does not pay off the balance. In a situation of delinquent payment, the credit card company will usually turn the matter over to a collection agency.
Unsecured Loan - A loan granted on the basis of a borrower's creditworthiness and signature; not secured by collateral.
Usury - Interest rate charged in excess of the legal rate established by law.