ECOA: Equal Credit Opportunity Act. A Federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs. Also called “Regulation B.”

Early Termination Charge: A fee that a car dealer will charge if a leased vehicle is returned earlier that the contract of the lease allows.

Earnest Money: A sum of money given to bind a sale of real estate, or assure payment, or an advance of funds in the processing of a loan; a deposit.

Easement: A right to the limited use or enjoyment of land held by another. Also, an interest in land to enable sewer or other utility lines to be run across or to allow access to a portion of the property.

Effective Gross Income (Personal): Annual income including overtime that is verifiable, which can be from more than one source if stable and easily documented.

Encroachment: An improvement that intrudes illegally upon another’s property.

End Loan: The final mortgage loan to the ultimate purchaser of a property, as opposed to a construction loan or other form of interim financing. This is also called a Take Out Loan.

Entitlement: A right due to an individual. Used with VA mortgages.

Environmental Impact Report: A report of the probable effect of a development on the surrounding area (environment). This report is prepared by an independent company using Federal, State, or local guidelines.

Equal Credit Opportunity Act: A Federal Law enacted in 1974 strictly prohibiting discrimination in the extension of credit because of a borrower’s age, race, color, national origin, gender, marital status, religion or the receipt of public aid. This law also requires that any lender notify the consumer of an approval or declination of a loan within 30 days of the decision.

Equity: Net ownership, the difference between fair market value and current in-idebtedness.

Escrow: A transaction in which a third party, acting as the agent for the buyer and the seller, carries out instructions of both, them assumes the responsibilities of handing all the documents and disbursement of funds.

Escrow Account: The separate trust account in which escrow funds are held by the servicer of the home loan.

Escrow Agent: See closing agent.

Escrow Analysis: The periodic examination of escrow accounts to determine if current monthly deposits will provide sufficient funds to pay taxes, insurance, and other bills when due.

Escrow Overage or Shortage: The difference, determined by escrow analysis, between escrow funds on deposit and escrow funds required to make a payment when it becomes due.

Escrow Payment: That portion of a mortgagor’s monthly payments held by a lender or servicer to pay taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also called impounds or reserves in some states.

Executor: A person named in a will to administer an estate. The court will appoint an administrator if no executor is named.

Excess Wear Charge: A charge by a car dealer for excess wear and tear to a vehicle when it is turned in after a lease is over.

Extended Coverage Endorsement: An endorsement that may be attached to fire insurance policies. This usually covers windstorm, hail, explosion, riot, civil commotion, damage by aircraft, vehicles, or smoke.