Glossary – O

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O

Office of Thrift Supervision (OTS)
The regulatory and supervisory agency for federally chartered savings institutions. Formally known as Federal Home Loan Bank Board.

One-Year Adjustable
Mortgage whose annual rate changes yearly. The rate is usually based on movements of a published index plus a specified margin, chosen by the lender.

Open-End Lease
A conditional sale lease in which the lessee guarantee that the lessor will realize a minimum value from the sale of the asset at the end of the lease.

Operating expenses
Those costs associated with the day-to-day activities of the business.

Operating Lease
Any lease that is not a capital lease. These are generally used for short term leases of equipment. The lessee can acquire the use of equipment for just a fraction of the useful life of the asset. Additional services such as maintenance and insurance may be provided by the lessor.

Operating profit (loss)
Income or loss before taxes and extraordinary items resulting from transactions other than those in the normal course of business.

Operating profit margin
Measures a firm’s profitability by examining the pre-tax profit generated from primary operations (versus extraordinary items) in relation to net sales. Operating profit divided by net sales.

Origination Fee
The fee charged by a lender to prepare loan documents, make credit checks, inspect and sometimes appraise a property; usually computed as a percentage of the face value of the loan.

Owner Financing
A property purchase transaction in which the party selling the property provides all or part of the financing.