- CAL-FIRPTA:
- California's version of the federal FIRPTA. It is a tax act which became effective in 1988 and was subsequently amended in September, 2002 to become a withholding tax for residents and non-residents who sell California real estate. Assembly Bill 2065 requires that all sales closing after December 31, 2002 in California withhold 3 1/3% of the sales price for certain California real property transactions.
- Cal-Vet:
- A program to help eligible California Veterans finance the purchase of farms and ranches within the state.
- California Environmental Quality Act:
- The Act allows local governments to require environmental impact reports for private or government projects that may have a significant impact on the environment.
- California Housing Financial Discrimination Act of 1977:
- Also known as the Holden Act. A California act prohibiting discrimination by a lender for any reason unrelated to the creditworthiness of the loan applicant.
- California Residential Mortgage Lending Act:
- An act administered by the Commissioner of Corporations which provides licensing authorizing mortgage lending and brokering.
- Call option
A provision in a loan that gives the lender the right
to accelerate the debt, and require for full payment of the loan immediately,
at the end of a specified period or for specified reason.
- Cap
A provision of an adjustable-rate mortgage (ARM) that
limits how much the interest rate or loan payments may increase or decrease. In
upward rate markets, it protects the borrower from large increases in the
interest rate or monthly payment. See lifetime payment cap, lifetime rate cap,
periodic payment cap, and periodic rate cap.
- Capital
(1) Money used to create income, either as an investment in a business or an income property.
(2) The money or property comprising the wealth owned or used by a person or business enterprise.
(3) The accumulated wealth of a person or business.
(4) The net worth of a business represented by the amount by which its assets exceed liabilities.
- Capital Expenditure
The cost of an improvement made to extend the useful life of a property or to add to its value, such as adding a room. The cost of repairing a property is not a capital expenditure. Capital expenditures are appreciated over their useful life; repairs are subtracted from income for the current year.
- Capital Improvement
Any structure or component erected as a permanent improvement to real property that adds to its value and useful life. See Capital Expenditure.
- Cash Available for Closing
Borrower funds available to cover down payment and
closing costs. If lending guidelines require the borrower to have cash reserves
at the time the loan closes or that the down payment come from certain sources,
borrower's cash available for closing does not include cash reserves or money
from other sources.
- Cash Out
- A hold or a claim on the property of another to satisfy an unpaid debt.
- Cash-out Refinance
A refinance transaction in which the new loan amount exceeds the total of the principal balance of the existing first mortgage and any secondary mortgages or liens, together with closing costs and points for the new loan. This excess is usually given to the borrower in cash and can often be used for debt consolidation, home improvement, or any other purpose. The borrower effectively borrows against the home equity.
- Ceiling
The maximum interest rate that can accrue on a
variable rate loan or adjustable rate mortgage (ARM). See lifetime rate cap.
- Certificate of Eligibility
A document issued by the federal government certifying
a veteran's eligibility for a Department of Veterans Affairs (VA) loan.
- Certificate of Reasonable Value (CRV)
A document issued by the Department of Veterans
Affairs (VA) that establishes the maximum value and loan amount for a VA loan,
based on an approved appraisal.
- Certificate of Title
A statement provided by an abstract company, title
company, or attorney stating who holds title to real estate based on the public
record.
- Chain of Title
The history of all of the documents affecting title to a parcel of real property, starting with the earliest existing document and ending with the most recent.
- Clear Title
A title that is marketable and is free of liens or
disputed legal questions as to ownership of the property.
- Closing Cost Item
A fee or amount that a home buyer or borrower must pay
at closing for a particular service, tax, or product. Closing costs are made up
of individual closing cost items such as origination fees and attorney's fees.
Many closing cost items are included as numbered items on the HUD-1 settlement
statement.
- Closing Costs
Various expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. Closing costs normally include items such as broker's commissions, discount points, origination fees, attorney's fees, taxes, title insurance premiums, escrow agent fees, and charges for obtaining appraisals, inspections and surveys. Closing costs will vary according to the area of the country. Lenders or real estate professionals often provide estimates of closing costs to prospective homebuyers even before the HUD-1 settlement statement is delivered.
- Closing Statement
An accounting of funds given to both buyer and seller before real estate is sold. Closing statements are also given to borrowers. See HUD-1 settlement statement.
- Cloud on Title
An outstanding claim or lien, revealed by a title
search, that adversely affects the owner's title to real estate. Usually,
clouds on title cannot be removed except by a quitclaim deed, release, or court
action.
- Collateral
An asset (such as a car or a home) that is pledged as security for the repayment of a loan. The borrower risks losing the asset if the loan is not repaid according to the terms of the loan contract or promissory note.
- Collection
The efforts used to bring a delinquent loan current
and, if necessary, to file legal papers and notices to proceed with
foreclosure.
Loan Glossary 
