Business Glossary-Term List

Borrower acknowledgement that they will conform with the requirements laid out by HUD for a 203(k) Rehabilitation Loan. AKA Form HUD-92700-A.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Certification that the borrower does not have an identity-of-interest with the seller of the property and does not have a conflict of interest with any other party to the transaction, including the realtor, lender, contractor, consultant, and/or the appraiser. In addition, certifying that the borrower is not obtaining any source of funds or acting as a 'straw buyer' for another individual, partnership, company, or investment club.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Certification letter completed by all consultants and plan reviewers who are required to sign the following certification after preparing/reviewing the work write-up and cost estimate. The signer certifies that all items requiring correction and that the rehabilitation proposal now meets all HUD requirements for 203(k) Rehabilitation Mortgage Insurance.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Describes the work that needs to be done to bring the house to FHA standards. AKA: 203K Specification of Repairs.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Breakdown of the costs, by line item, associated with the work to be conducted in the rehabilitation of the property.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Provides information required to release funds based on work in place. Must be signed by contractor, borrower and inspector. AKA Form HUD-9746-A

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Confirms the final bid amount for the project and the time frame for completion. A contract between the homeowner and the contractor. AKA: 203K Contractor Acknowledgement.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Determines Maximum amount for 203K Mortgage based on the loan amount; closing costs; sales price (if purchase) and work to be performed. Provided to the Lender. AKA: MMW.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Derived from a Judgment; contains only the details of a court action that relate to fulfilling the court order.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Establishes a direct debit from a borrowers account for loan or escrow payment. AKA: ACH.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Confirms that a borrower has received and understands the Notice Of Right To Cancel document. Sometimes contained with the Notice Of Right To Cancel document.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Establishes the fact of death but does not contain personally identifiable information.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Establishes the fact that the Note is lost. The Lost Note Affidavit together with a copy of the lost note may be accepted as a note equivalent.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Informs the borrower of any Lender-related businesses (i.e., subsidiaries or affiliates) and borrower options related to using these providers. This document is a part of HUD Regulation X (RESPA/Reg X).

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Confirms that a borrower is aware of presence of airport and possible noise situations. Provided by Borrower.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Adds HUD required conditions to the Purchase Agreement. Escape clause allowing a borrower to exit transaction if it does not meet value. These do not have HUD number but are required in Purchase Agreement. AKA: Real Estate Certification.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

A table showing the amounts of principal and interest due at regular intervals and the unpaid mortgage balance after each payment is made.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary, #Origination, #Servicing

Describes disclosures from the loan originator to the borrower as part of the application process.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

A notice from the loan originator to the borrower that the borrower must notify the loan originator of any additional loan debt that the borrower takes on after loan application and before the loan closing.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

A Recertification of Value is performed to confirm whether or not the conditions of a prior appraisal have been met. It does not change the effective date of the value opinion. It is often used for the final inspection or completion certificate for a newly constructed home when the original appraisal was done using plans or specs or when the house was partially complete. It is also used when the original appraisal was subject to repairs or alterations to be made to the house. Confirms that the appraised value of a home has not decreased. The use of the document type includes the Fannie Mae 1004D and Freddie Mac 442.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination