Debt Glossary for alphabet "E"
- Electronic Fund Transfer (EFT) Systems:
It allows the customers to make hassle free payments for goods and services online with credit cards. - Earnest Money:
This is the initial deposit that is paid by the buyer to show his/her intent to buy a particular real estate property. - Equal Credit Opportunity Act (ECOA):
This law ensures that no discrimination would be made to customers based on their age, race, color, creed, religion, nationality, marital status or economic condition in the event of offering loan. Creditors are not allowed to disqualify a consumer from getting loan, based on the any of the above criteria. This law was enacted in 1974. - Equifax:
It’s one of the three major credit bureaus. Creditors report payment history of a customer to Equifax and Equifax then releases this information to other creditors upon request. The other two credit bureaus are Experian and TransUnion. - Equity:
It is determined by the difference between the market value of the property and outstanding loan on it. - Escrow:
It is an uninterested third party that holds a financial instrument or property deed on behalf of the parties involved in the transaction and returns the rights upon fulfillment of the terms mentioned in the document. - Estimated Closing Fees:
To comply with the RESPA, the originator of the loan is responsible to give the borrower a Good Faith Estimate (GFE) of the fees and costs associated with the loan. The estimated closing fees amongst the lenders can vary widely but on an average, it may range between 2% to 5% of the loan amount. - Experian:
It is one of the three major credit bureaus of United States. It delivers credit information of the prospective customers to the lenders upon request.
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