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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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A Credit Mortgages

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

A-Pieces

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

AAA Tenant

A prime tenant who has the highest credit rating.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Abandonment

The intentional relinquishment of claim or title to personal or real property.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Abatement (Rental)

A reduction or elimination of rent payments for a specified period of time, usually granted by the landlord as an inducement to the tenant to enter into or to renew a lease.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Abatement (Tax)

A reduction in real property tax granted by a taxing authority as the result of an appeal. In some jurisdictions, tax abatements may also be granted as an inducement for development or to attract or retain job-providing industries.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Above Par

When a mortgage is sold for more than its face value because it has an above market interest rate. For example, a $100,000 mortgage may be sold for 101.00, or $101,000.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Above The Fold

The part of a Web page that is visible once the page has loaded � normally the top part. This term is pertinent to the electronic mortgage world as E-sign requires the presentation of documents to be compliant with state statutes that govern font, pagination, format etc.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Absentee Ownership

Ownership of property (usually income producing) by a non-occupant who employs others to manage and maintain the property.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Absorption

The level of property units rented or sold after which price concessions must be made for market demand to continue at current levels. Used to determine the feasibility of new residential or commercial construction.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Absorption Rate

The rate at which vacant space is either leased or sold to users in the market place. Absorption rate is usually expressed in square feet per year or, in the case of multifamily housing, number of units per year.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Abstract Of Title

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

Abstraction

Method for computing depreciation by comparing the replacement cost of the improvements to the sales price less land value.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Accelerated Cost Recovery System (ACRS)

Part of the Economic Recovery Act of 1981, an accounting method which allows for a shorter depreciation period for real property over traditional depreciation methods.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Accelerated Depreciation

A method of calculating depreciation in which a larger portion of depreciation is charged in early years than in later years.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Accelerated Remittance Cycle (ARC)

An option available to Freddie Mac�s sellers and servicers which allows the lender to decrease the guarantee fee due Freddie Mac in return for shortening the monthly remittance delay by paying principal and interest payments early.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Acceleration Clause

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

Acceptance

An offeree�s consent to enter into a contract and be bound by the terms of the offer.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Acceptance Letter

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

Access Rights

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

 

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