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:Ability to Repay (ATR) requires that a lender make a reasonable, good-faith determination before or when consummating a mortgage loan that the consumer has a reasonable ability to repay the loan, considering such factors as the consumer�s income or assets and employment status
Term Source: MISMO Life of Loan
Term Type: Other
Focus Area: #MISMOLifeOfLoan, #Origination
Process in which the Lender notifies the MI Company that the loan has closed and that the MI is requested to be activated.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of reviewing that the Lender information is accurately listed as the Mortgage Loss Payee on each of the subject property's insurance policies. The addition of the loss payee clause helps protect the Lender from loss, after closing, in the event the subject property is damaged by a covered event.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of applying for a mortgage loan, qualifying for the loan, and receiving a decision to approve or deny the loan request.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
A system that retrieves relevant data such as loan application information and borrower credit history to arrive at a computer-generated recommendation for the loan underwriting recommendation.
Term Source: MISMO Life of Loan
Term Type: Other
Focus Area: #MISMOLifeOfLoan, #Origination
Process in which the Borrower(s) inform the Lender that they do not wish to proceed with the loan origination process.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of calculating the minimum required amount of any insurance required by the Lender based on loan amount, dwelling replacement costs, or environmental factors. The Lender confirms the Borrower has obtained sufficient coverage on each policy to meet the Lender's minimum coverage and deductible requirements.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of reviewing documentation to confirm that all outstanding closing conditions are satisfied.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of Closing and Funding a mortgage loan.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of reconciling the loan fees with the Settlement Agent to ensure accuracy of the final Closing Disclosure (CD).
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of collecting and confirming data both internally and with third parties that will be used to produce a Closing Disclosure (CD) for the Borrower and the Uniform Closing Dataset (UCD) for GSE delivery.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of obtaining Loan Application information from the Borrower(s).
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
The process of collecting loan-level data required for HMDA reporting, typically from multiple systems, depending on the Lender's or Servicer's business model.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination, #Servicing
Process of collaborating with appropriate parties to retrieve outstanding documents required for loan servicing.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of completing the Loan Application information regarding the property, the Borrower(s), and the requested loan.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of validating the information contained on the loan application and other Borrower and property details required to decision the application.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Documentation or information that must exist (""be satisfied"") at or before a point in the origination process, such as Prior to Closing, Prior to Funding, etc. Common conditions include proof of mortgage insurance (when applicable), proof of homeowners insurance, and requests for additional documentation.
Term Source: MISMO Life of Loan
Term Type: Other
Focus Area: #MISMOLifeOfLoan, #Origination
Process of reviewing the loan approval's expiration dates and the expiration of documents associated with the underwriting approval.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process in which the Lender creates the eNote and makes it available to the system used at closing
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of delivering an accurate Closing Disclosure (CD) to the Borrower via mail, electronically, or in person.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
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