Glossary – U

A B C D E F G H I J K L M N O P Q R S T U V W XYZ

U

Unemployment Rate
This is the percent of the civilian labor force currently unemployed. If unemployment figures are up, it indicates a lack of expansion within the economy and is, therefore, good for the bond market. Conversely, a big gain in employment would be an obvious cue for the Federal Reserve to tighten (raise) either the federal funds rate or the discount rate. Bond Market Moves Up In Price.

Underwriting
The decision whether to make a loan to a potential buyer based on credit, employment, assets, and other factors and the matching of this risk to an appropriate rate and term or loan amount.

Upfront Fees
Generally refer to fees charges to pay for third party costs like appraisals.

Usury
Interest charged in excess of the legal rate established by law.