In mortgage banking, the analysis of
the risk involved in making a mortgage
loan to determine whether the risk is
acceptable to the lender. Underwriting
involves the evaluation of the
property as outlined in the appraisal
report, and of the borrower’s
ability and willingness to repay the
A property that is free
and clear of debts or liens.
Commercial Code (UCC)
comprehensive code of laws regulating
important legal aspects of business
and financial transactions. The code
has been accepted by every state
method of estimating
construction costs by figuring the
cost of each component installed. Also
called the segregated cost method.
The amount for which a
property may be sold to cover all
expenses. The break-even point.
Development Action Grant (UDAG)
federal program administered by HUD
under which distressed cities and
urban counties may obtain funding for
community development projects.
The redevelopment or
rehabilitation of property in an urban
Basic services associated with
developed areas that include
provisions for electricity, telephone,
fuel, water, and garbage collection.