Definitions

assigned loan

Define: assigned loan Definition: An assigned loan is the transfer of ownership from one person to another.

dwelling

Define: dwelling Definition: A dwelling is a residential structure that contains one to four units, whether or not that structure is attached... read more →

non-conforming loan

Define: non-conforming loan Definition: A non-conforming loan is a loan that does not conform to Federal National Mortgage Association (FNMA) or Federal... read more →

non-traditional mortgage

Define: non-traditional mortgage Definition: A non-traditional mortgage is a residential mortgage loan product that allows borrowers to defer repayment of principal and,... read more →

underwriting

Define: underwriting Definition: Underwriting is the process used to determine loan approval. It involves evaluating the property and the borrower's credit and... read more →

tolerance

Define: tolerance Definition: Tolerance  is the degree to which state closing costs can vary between the Loan Estimate and the Closing... read more →

third party providers

Define: third party providers Definition: Third party providers are settlement providers other than the lender including the title company, hazard insurance company,... read more →

subprime mortgage

Define: subprime mortgage Definition: A subprime mortgage is a loan that is meant to be offered to prospective borrowers with impaired credit records.... read more →

subordinate loans

Define: subordinate loans Definition: Subordinate loans are any mortgage priority than the first mortgage. This includes a second mortgage at the time... read more →

settlement

Define: settlement Definition: A settlement is the process of completing a loan transaction at which time the mortgage documents are signed and... read more →

secondary market

Define: secondary market Definition: The secondary market is the market in which mortgage loan and mortgage-backed securities are bought and sold.

referral

Define: referral Definition: A referral is any oral or written action directed by a person in order to influence the selection of... read more →

primary mortgage market

Define: primary mortgage market Definition: Primary mortgage market is the entities involved in originating a mortgage loan including mortgage brokers and lenders.

prepaids

Define: prepaids Definition: Prepaid expenses may include property taxes, homeowner's insurance, and mortgage interest that will accrue before the first mortgage payment... read more →

premium pricing

Define: premium pricing Definition: Premium pricing is a credit from a lender for the interest the interest rate chosen. Premium pricing... read more →

net worth

Define: net worth Definition: Net worth is assets minus liabilities.

mortgage lender

Define: mortgage lender Definition: A mortgage lender is a lender providing funds for a mortgage. They can also manage financial information... read more →

mortgage investors

Define: mortgage investors Definition: Mortgage investors are individuals or companies that purchase mortgages after the closing.

mortgage broker

Define: mortgage broker Definition: A mortgage broker is a person that renders origination services and serves as the intermediary between a borrower and... read more →

leverage

Define: leverage Definition: Leverage is the use of borrowed funds to increase yield.

junior lien

Define: junior lien Definition: A junior lien is a loan that is subordinate to a primary loan, such as a second or... read more →

high interest rates

Define: high interest rates Definition: High interest rates are rates that exceed a specified threshold and require HOEPA disclosures.   

fraud alert

Define: fraud alert Definition: A fraud alert is a statement in the file of a consumer that notifies all prospective users... read more →

escrow accounts

Define: escrow account Definition: An escrow account (also known as an impound or reserve account) is an account that a mortgage servicer establishes... read more →

entitlement

Define: entitlement Definition:  Entitlement is the amount of money the VA promises to pay back the lender in case the borrower... read more →

eminent domain

Define: eminent domain Definition: An eminent domain is the condemnation of private property for public good.

easement

Define: easement Definition: An easement is a right to the use of/access to land owned by another.

disintermediation

Define: disintermediation Definition: Disintermediation is the withdrawal of funds from savings accounts and into stocks, bonds, and real estate.

delinquent loan

Define: delinquent loan Definition: A delinquent loan happens when a mortgage payment in late.

constructive notice

Define: Constructive notice Definition: A constructive notice is a notice which is recorded in public records.

creditor

Define: creditor Definition: A creditor is any person or business who arranges for the extension, renewal, or continuation of credit.