Define abundance of caution

English Dictionary.

Infinitive or -ing verb? Avoiding common mistakes with verb patterns 1. Add to word list Add to word list. The Governor described the deployment of the National Guard as "an abundance of caution ". Cautious and vigilant. Browse amyloidosis.

Define abundance of caution

Answer by Lucy Griffin: Abundance of caution is a term developed and used by lenders. I'm not aware of any federal regulatory definition, but regulators sometimes produce an explanation based on specific questions posed to the agency. In general use, abundance of caution is used to mean that the additional security isn't required by underwriting guidelines, but the lender requires it, being abundantly cautious. This usually happens when the loan has high risk, or the customer is a first-time borrower. The term comes into play in the compliance arena when flood insurance must be considered. Regulatory responses there have stated that the value of the property relative to the loan, or the role of the security in making the loan, is not relevant. What matters is taking the security interest which triggers the flood insurance rules. Answer by Jim Bedsole: The only place, from a federal regulation standpoint, where I'm aware of the term being used is in the appraisal regulations for FDIC banks, that's 12 CFR ; there are corresponding regulations for the other regulators as well. In However, it does not define that term. I believe that is going to have to be something your loan policy defines. Answer by Dan Persfull: The questioner's quote is from the following exerpt from the document located at www. In that context, taking property as an abundance of caution through a blanket lien in addition to other collateral does not qualify for the LTV exemption. Transactions Excluded from Supervisory Guidelines The Guidelines describe nine lending situations that are excluded from the supervisory LTV limits, reporting requirements, and aggregate capital limitations. The agencies have received numerous questions from bankers and examiners regarding two of these excluded transactions.

Browse out loud idiom. English Pronunciation. Joint Patent means a patent that issues from a Joint Patent Application.

Infinitive or -ing verb? Avoiding common mistakes with verb patterns 1. Add to word list Add to word list. The airline said that out of an abundance of caution they would temporarily ground their entire fleet of planes. These voluntary actions are being undertaken out of an abundance of caution.

Answer by Lucy Griffin: Abundance of caution is a term developed and used by lenders. I'm not aware of any federal regulatory definition, but regulators sometimes produce an explanation based on specific questions posed to the agency. In general use, abundance of caution is used to mean that the additional security isn't required by underwriting guidelines, but the lender requires it, being abundantly cautious. This usually happens when the loan has high risk, or the customer is a first-time borrower. The term comes into play in the compliance arena when flood insurance must be considered. Regulatory responses there have stated that the value of the property relative to the loan, or the role of the security in making the loan, is not relevant.

Define abundance of caution

Add to word list Add to word list. The Governor described the deployment of the National Guard as "an abundance of caution ". Cautious and vigilant. Browse amyloidosis.

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English—Japanese Japanese—English. Filed under:. English to Traditional. Like this: Like Loading…. French images. See an abundance of caution formal mainly US. English synonyms. Video Learn English. It is not useful It is offensive. Avoiding common mistakes with verb patterns 1 February 21, Free word lists and quizzes from Cambridge.

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Browse amyloidosis. Essential British English. Answered by:. Examples of Abundance of caution in a sentence An Abundance of caution ; While Bellingham is a relatively safe small city, it is possible to find trouble if one seeks it out. Quick word challenge Quiz Review. Amaze your friends with your new-found knowledge! Contractor Commercially Sensitive Information means the information listed in the Contractor Commercial Sensitive Information Annex to the Contract being information notified by the Contractor to the Authority which is acknowledged by the Authority as being commercially sensitive information. The word in the example sentence does not match the entry word. Follow Michael Machera Blog on Facebook. Click on the arrows to change the translation direction. However, the abundance of caution security is not the deciding factor in the loan being made, nor does it give way to more favorable terms by taking the abundance of caution security interest. Answer by Jim Bedsole: The only place, from a federal regulation standpoint, where I'm aware of the term being used is in the appraisal regulations for FDIC banks, that's 12 CFR ; there are corresponding regulations for the other regulators as well.