Definitions of key terms in real estate finance, tokenization, RWA, mortgage lending, and compliance. For educational purposes only.
Laws, regulations, and procedures designed to prevent money laundering. Certain financial institutions and businesses are required to implement AML programs under the Bank Secrecy Act.
A person or entity that meets certain income, net worth, or professional criteria under SEC Rule 501. Many private securities offerings are limited to accredited investors. Criteria must be verified by a qualified third party.
An SEC-regulated electronic platform that matches buyers and sellers of securities but is not a national securities exchange. Some tokenized securities may be traded on registered ATS platforms. Operating an ATS without registration may violate securities law.
The natural person(s) who ultimately owns or controls a company or account. AML regulations may require identifying beneficial owners of entity investors.
A FINRA-registered firm or individual that buys and sells securities on behalf of clients or for its own account. Selling securities generally requires a registered broker-dealer unless an exemption applies.
A metric used in real estate lending calculated by dividing net operating income by total debt service. DSCR loans qualify borrowers based on property cash flow rather than personal income.
A short-term, asset-based real estate loan typically from private lenders. Interest rates are generally higher than conventional financing. Terms and eligibility vary by lender.
A regulatory compliance process where financial institutions verify the identity of their clients. Required for many financial services and often required for tokenized securities offerings.
A licensing system for mortgage companies and professionals in the U.S. Verify mortgage professionals at nmlsconsumeraccess.org.
A federal law governing real estate settlements. RESPA prohibits kickbacks and unearned fees for settlement service referrals, including mortgage referrals. Referral fee arrangements must comply with RESPA.
A term used to describe physical or traditional financial assets — including real estate, commodities, and receivables — whose ownership is represented on a blockchain. Legal and regulatory status varies by jurisdiction and structure.
An SEC exemption from registration for private securities offerings, subject to conditions. Common exemptions include Rule 506(b) and Rule 506(c). Not all investors qualify for Reg D offerings.
A blockchain-based token designed to maintain a stable value, typically pegged to a fiat currency. May be subject to money transmission, banking, or securities regulations depending on structure.
The process of representing ownership interests or economic rights in an asset using blockchain-based tokens. Depending on structure, tokenized interests may constitute securities subject to federal and state law.
An SEC-registered company that maintains records of securities owners. For tokenized securities, a registered transfer agent may be required to maintain the official investor record.
Explore our full RWA education guide for deeper coverage of tokenization concepts, risks, and compliance frameworks.
Pegasus Lenders Group is a marketplace and membership platform. Pegasus is not a lender, mortgage loan originator, broker-dealer, investment adviser, securities exchange, ATS, real estate broker, insurance agency, MLS, IDX provider, crypto exchange, stablecoin issuer, custodian, or money transmitter. All loan, real estate, insurance, RWA, tokenization, blockchain, and service terms are provided by independent third-party professionals subject to their own licensing, underwriting, approval, compliance, and legal requirements. Users are responsible for independently verifying credentials, licensing, terms, services, and suitability before engaging any third party. See our Disclosures.