U.S. Department of Housing and Urban Development

The U.S. Department of Housing and Urban Development, also known as HUD, is a federal department that establishes and enforces the country's housing policies. The Federal Housing Administration, or FHA, is part of HUD.

Underinsured driver

Underinsured driver is an optional coverage type available on auto insurance policies. Underinsured driver coverage pays the insured for any medical expenses or auto repair expenses that exceed the insurance limits on the at-fault party's policy.

Underpayment penalty

The penalty for not paying enough total estimated tax and withholding. You can avoid underpayment penalties by paying a percentage amount of last year's tax due or of the current year's expected tax due.


When you owe more on the loan for a property or car than the asset is worth; you have a feeling of being underwater.


The process by which the lender decides if they will lend money. This decision is based on the value of the property, the borrower's credit history and any other relevant factors. It is also used to mean the process of issuing insurance policies.

Unearned income

Income which comes from interest, dividends, capital gains or rents, as opposed to earned income, such as wages, tips and salaries.

Unearned interest

Unearned interest is an account on a lender's balance sheet that represents interest amounts that were collected in advance of being accrued.

Unified Managed Account - UMA

Unified managed account, or UMA, is a fee-based investment management product that includes all of the assets in an investor's portfolio, including stock positions, mutual funds, hedge funds, separate accounts, etc. A unified account makes it easier for the investor or money manager to employ a comprehensive investing strategy and maintain proper asset allocations.

Uniform Gift to Minors

Uniform Gift to Minors, also known as UGMA, is a trust that allows minors to invest in securities. Parents establish UGMAs on behalf of their children, and any funds deposited by the parents are considered irrevocable gifts. When the child reaches the age of 18 or 21 (depending on the state), he receives full control of the assets in the account.

Uniform Premarital Agreement Act

Uniform Premarital Agreement Act is state legislation that gives the parties to a premarital contract the option to choose the state that will have jurisdiction over the premarital contract. The state can be one in which either party lives or plans to live. It can also be the state in which the couple is to be married. Not all states have passed the Uniform Premarital Agreement Act, which limits the legislation's effectiveness somewhat.

Uniform Transfer to Minors Act - UTMA

Uniform Transfer to Minors Act, or UTMA, is legislation that allows parents to establish a trust account for their children. The trust account can invest in securities, as well as real estate, patents, royalties, and fine art on behalf of a minor child. Assets deposited to the account are subject to gift taxation laws. When the child reaches the age of 18 or 21 (depending on the state), she receives full control of the assets in the account.

Uninsured driver or motorist

Uninsured driver or motorist is an optional coverage type available on an auto insurance policy. Uninsured driver or motorist coverage pays the insured for injuries or damages that result from being hit by another driver who doesn't have auto insurance.

Universal default

Universal default is a policy of some lenders that allows them to punish borrowers who pay any creditor late.

Universal life insurance

Universal life insurance is an insurance contract that remains in force for the insured's lifetime, pays a benefit to designated beneficiaries upon the insured's death, and builds a cash value over time. A portion of the premium goes towards the death payment, and a portion is directed into yield-generating investments. The insured has the ability to transfer funds between the two parts of the policy, such as using investment earnings to pay premiums.

Unpaid dividend

Unpaid dividend is a profit distribution to owners that has been declared but not yet remitted.