Washington State Department of Financial Institutions

Glossary of Terms

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Three-Day Right Of Rescission - The three-day period that a borrower has to change his/her mind and cancel a refinance transaction on the home that s/he occupies.

Thrift Institution - thrifts include mutual savings banks, savings and loan associations and credit unions.

Time Value of Money - The concept that money today is worth more than the same amount in the future, when inflation has reduced its value.

Title 1 - An FHA-insured loan that allows a borrower to make non-luxury improvements (like renovations or repairs) to their home; Title I loans less than $7,500 don't require a property lien.

Title Insurance Company - A company, which issues insurance regarding title to real property.

Title Insurance - Insurance to protect the lender (lender's policy) or the buyer (buyer's policy) against loss arising from disputes over ownership of a property.

Title Search - A check of the title records to ensure that the seller is the legal owner of the property and that there are no outstanding liens or other claims on the property.

Title - A legal document establishing the right of ownership, another term used for that is "deed."

Total Return - A measure of investment performance that starts with price changes, then adds in the results of reinvesting all earnings generated by the investment during the period being measured.

Traveler's Checks - Special checks sold with an insurance feature that protects the buyer against loss if the checks are lost, stolen, or destroyed.

Treasury Bills - Short term U.S. Treasury securities issued in minimum denominations of bank as a corporation may administer property for its customers when authorized to do so. Trusts are usually created under wills, by court orders, or by agreement. $10,000 and usually having maturities of three, six or twelve months.

Truncation - Checks are stored by SECU and not returned to the member.

Trust - A trust exists when one person holds property for the benefit of another.

Trustee - The person designated as the trustee in the deed of trust or appointed under RCW 61.24.010(2) who holds legal title to property "in trust" for the benefit of another person (beneficiary). This person must carry out specific duties with regard to the property.

Truth In Lending Disclosure - A legally required document that shows the loan amount, interest rate, required payments, and total amount of interest that will be paid over the life of the loan. This document is required to be provided to the borrower before the mortgage transaction is signed. In a purchase transaction, this document is required to be provided to the borrower within three days of the date of application. In other types of loans (e.g. refinances, second mortgages, etc.), it is ordinarily provided to the borrower at the loan closing. This document is intended to translate the legalese of the Note and Deed of Trust into understandable terms for comparison-shopping, to understand loan costs, and to understand the type of loan, length of loan, and payment schedule.

Truth-in-Lending Act (TILA) - Federal law which requires disclosure of a truth in lending statement for consumer loans. The statement includes a summary of the total cost of credit such as the APR and other specifics of the loan.

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DFI