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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Search on:Mortgages which generally meet the credit underwriting guidelines of Fannie Mae, Freddie Mac, FHA, VA or major jumbo purchasers. Those who have credit ratings or other qualification deficiencies would be rated as B, C or D credit.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
Refers to security classes (tranches) rated as investment grade for institutional investors; can also include the class rated BBB, as that is considered an investment grade for most regulated institutions; also called senior pieces.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A written history of ownership of a parcel of land, summarizing the material parts of any occurrence affecting title of said land.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A common provision of a mortgage which allows the holder to demand the entire outstanding mortgage balance due and payable in the event of a breach of the mortgage contract.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A document signed by a construction loan borrower stating that all work is complete and of acceptable quality.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A right to ingress and egress from one�s property; may be implied or expressed.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A promissory note or other negotiable instrument signed by a third party (accommodation party) guaranteeing the repayment of a loan.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A bond on which the interest accrues, but is not paid to the investor during the period of accrual. Instead, the amount accrued is added to the principal balance and is paid at maturity. Also called accretion bonds or Z-bonds.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A formal declaration attached to or part of an instrument, made before a duly authorized officer (usually a notary public) by the person who has executed that instrument, the execution being a free act and deed.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A form utilized by the insurance industry for use between an Agency and a Company for Organization, Research and Development.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A loan for the purchase and preparation of raw land for development. Usually a construction loan or land sale is the source of repayment.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A document evidencing payment in full of a debt obligation. One example would be a satisfaction of mortgage.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
An agreement or list that is added to a contract, agreement or other document such as a letter of intent. FHA and VA require that an addendum be added to or incorporated in a sales contract, if it is written prior to the appraisal.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A mortgage loan or deed of trust which allows the lender to adjust the interest rate in accordance with a specified index periodically and as agreed to at the inception of the loan. Also called "variable rate mortgages" (VRM).
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A written promise to make an investment at some time in the future if specified conditions are met.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A sworn statement in writing, usually requiring notarization.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
Securities issued by government or quasi-government agencies such as Fannie Mae and Freddie Mac.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A provision whereby the policyholder agrees to self-assume the payment of claims incurred up to a specific amount or limit, with the insurer paying all claims after such limit is attached.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A provision which limits the maximum liability of an insurer for losses in a given time period (usually 12 months). Policy limits are usually expressed in maximums per accident (or occurrence), with an aggregate for all losses in any one year.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
An agreement whereby the coinsurance clause is waived if the insured agrees to carry a specific amount of insurance which represents at least 90% to 100% of total values at risk. Also known as "stated amount coinsurance."
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
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