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Business Glossary-Term List

Welcome to the MISMO Business Glossary - your online source of mortgage industry business terms and data point descriptions. Follow the links provided for Term Type; Focus Area; and Source descriptions; complete terms of authorized usage; and a more detailed description of the MISMO Business Glossary.  Search tip:  Use quotes for an exact search (e.g., "keyword or phrase"). 

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At-The-Money

In options trading, the point at which the strike price is equal to the market price of the underlying security.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

Bear Market

A market characterized by falling prices. A bear market in the mortgage industry may be triggered by rising interest rates.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

Delivery Date

The contracted date when the actual payment of funds and delivery of mortgage-backed securities occurs.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

Disclosure

Information relevant to specific transactions that is required by law.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

Discounted Cash Flow Analysis (DCF)

See DISCOUNTED CASH-FLOW ANALYSIS.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

Distressed Property

Term that denotes property in trouble due to one of several reasons, such as: cost overrun, insufficient income, poor management or any other conditions which affect the mortgagor�s ability to repay the loan on a timely basis.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

Divest

To release an interest one has in property.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

Dollar Roll

Repurchase agreement in which a security is sold with an agreement that a substantially similar security will be repurchased at a later date at a given price.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

Dominant Estate

When an owner of property is given certain rights to use another�s property.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

Dry Funding

Any advance of new funds to a mortgage banker for funding or purchasing mortgage loans where the collateral package is in the possession of the collateral agent and is free of lien or bailment.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

eRecording

1) The act of registering the security instrument electronically with the county recorder or similar jurisdictional authority. 2) An act of registering the security instrument and other recordable documents electronically with the county recorder or similar jurisdictional authority. eRecording does not require the security instrument to be electronically executed. A county often records a scanned image of the paper security instrument when it eRecords. For models of eRecording, see the PRIA Technology Committee Business Requirements Work Group: Models of eRecording - A Continuum of eRecording - https://www.pria.us/i4a/doclibrary

Term Source: MBA Glossary

Term Type: Event

Focus Area: #eMortgageGlossary, #MBAGlossary

GNMA Repurchase Agreement

A financial tool whereby Ginnie Mae guaranteed mortgage-backed securities are sold to a security dealer who simultaneously agrees to repurchase them at a later date at a fixed price. No recorded transfer takes place and the security dealer holds the Ginnie Mae certificate. Also called a "repo."

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

Non-Repudiation

The combination of identity and integrity to circumvent claims of denial of having been party to and accepting the terms of an online transaction after the transaction has been conducted.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

Notice Of Funding Availability (NOFA)

Notice by HUD area offices to inform potential project sponsors of contract authority available under federal programs.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

Phase I Environmental Audit

A basic study conducted to evaluate the environmental condition of real property and/or improvements.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

Phase II Environmental Audit

A study of the environmental condition of property/ improvements that is more detailed and in-depth than a Phase I audit. May include groundwater testing or testing of soil.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

Real Estate Owned (REO)

Property a lender acquires as the result of foreclosure.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary, #MISMOApprovedAcronym

VA Funding Fee

Fee charged on VA mortgages to cover the administrative costs of the program.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

 

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