Related Words

Automated Underwriting: Computer systems that permit lenders to expedite the loan approval process and reduce lending costs.

Underwriting: The process of identifying and classifying the risk represented by an individual or group.

Underwriting Agreement: Acting as the underwriter in the issue of new securities for a firm.

Stock Exchange Automated Quotation System (SEAQ): Payment of a corporate dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company, or it may be shares in a subsidiary being spun off to share . . . View Full Definition

Security Industry Automated Corporation (SIAC): Entity that executes automated DOT orders.

Negotiated Underwriting: A securities offering process in which the purchase price paid to the issuer and the public offering price are determined by negotiation rather than through competitive bidding.

Renewal Underwriting: The process by which an underwriter reviews each year all the selection factors that were considered when the contract was issued, then compares the group's actual utilization rates to those . . . View Full Definition

Underwriting Fee: This is a fee charged by the lender to evaluate whether the borrower qualifies for a mortgage loan. An underwriting fee may be charged to the borrower and shown on the Settlement Statement (HUD-1).

Underwriting Spread: For an insurance company, the difference between the premiums earned and the costs of settling claims.

Underwriting Syndicate: The income that is generated by the underwriting syndicate and the selling group, which is essentially the difference between the amount paid to the issuer of securities in a primary distrib . . . View Full Definition