Commercial Lending Glossary
A glossary of definitions for common terms used in commercial real estate hard money lending & CRE investing.
The Fair Credit Reporting Act, or FCRA, is a 1970 law enacted to facilitate fairness, accuracy, and privacy of consumer information by consumer reporting agencies. The FCRA regulates collection, transfer, and use of this information to protect consumers.
A popular type of credit score used by lenders to assess borrowers' credit risk. FICO scores consider five areas: current level of indebtedness, payment history, types of credit used, new accounts, and length of credit history.
Fixed Rate Loan
A type of loan with an interest rate that will not fluctuate. Fixed rate loans make it easier for borrowers to predict and plan for their payments. Can be directly contrasted with variable rate loans.