Related Words

Settlement: The time when loan and mortgage documents are formally signed and the loan transaction is completed. Sometimes called 'Closing.'

Hud-1 Settlement Statement: At closing, in conformance with Real Estate Settlement Procedures Act (RESPA) regulations, a HUD-1 settlement statement is prepared showing the exact closing costs to buyer and seller.

Viatical Settlement: Technically speaking, a viatical settlement occurs when the holder of a life insurance policy sells the policy to a third party before the original owner dies. Most viatical settlements invo . . . View Full Definition

Settlement Date: The settlement date is the date by which a securities transaction must be finalized. By that date the buyer must pay for the securities purchased in the transaction, and the seller must deli . . . View Full Definition

Life Settlement: If you are over age 70 and no longer need your life insurance policy, you may be able to sell it to a third party in what’s called a life settlement. You’re paid a cash amount less than the . . . View Full Definition

Real Estate Settlement Procedures Act (RESPA): A federal law, enacted in 1974 and later revised, that ensures that the buyer and seller in a real estate transaction have knowledge of all settlement costs when the purchase of a one-to-fou . . . View Full Definition

Uniform Settlement Statement: The standard HUD Form 1 required to be given to the borrower, lender and seller at the time or before settlement by the settlement agent in a transaction covered under the Real Estate Settle . . . View Full Definition

Regular Settlement: Transaction in which a stock contract is settled and delivered on the fifth full business day following the date of the transaction (trade date). In Japan, regular settlement occurs three bu . . . View Full Definition

Next Day Settlement: Transaction in which the contract is settled the day after the trade is executed. See: Settlement date.

Same-Day Funds Settlement (SDFS): A method of settlement used in trading between well-collateralized parties in good-the-same-day federal funds used by the Depository Trust Company for transactions in U.S. government securit . . . View Full Definition