Monday, August 15, 2011

Cambridge Realty Capital Expands and Updates Popular Glossary of Lending Terms on Company’s Corporate Website




CHICAGO, IL--If you don't know the difference between a haircut, a kicker and a Mother Hubbard clause, at least you’re not alone.

Borrowers and other curious members of the senior housing/healthcare community routinely check out these and the more than 240 other lending terms defined in a glossary posted on the Cambridge Realty Capital Companies corporate website, www.cambridgecap.com.

Cambridge is one of the nation’s leading senior housing/healthcare lenders and is consistently ranked among the top HUD 232 Lean lenders in the country. Loan officer Katie Trice (top right photo) says visitors can find a link to the Glossary of Terms in the INFOCENTER section of the Cambridge website.

On average, about 215 unique visitors check out the glossary every month.

In case you’re wondering, a “haircut” is the difference between the market value of a mortgage and the amount of money a lender will advance against it. A “kicker” is a loan arrangement in which borrowers are required to pay a specified amount or percentage of income or cash flow in addition to normal debt service.

A “Mother Hubbard clause” has naught to do with bare, boneless cupboards. In the event of a loan default, a Mother Hubbard clause enables the lender to foreclose not only the on the property affected but on any other mortgage the borrower might have with the same lender.  Ouch!

Trice says Cambridge routinely defines new terms as the need arises. The latest addition to the glossary is the term “contractual allowance”, which is defined as the difference between what a hospital or senior care facility bills for services rendered and the amount actually paid by third party payors; for example, Medicare/Medicaid and insurance companies under contractual agreements.

Contact:
Evan Washington
Phone: (312) 521-7604
Fax: (312) 357-1611

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