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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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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

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

Accident

An unplanned, unexpected and undesigned event which occurs suddenly at a definite place. Also see OCCURRENCE.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Accretion

A build up of land by natural forces, such as wind, waves or the flow of water.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Act Of God

An event which causes damage by nature such as a flood, earthquake or winds; an occurrence which was not caused by man.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Actual/Actual

Remittance to investors which requires the servicer to give the investor actual interest (net of servicing fees) and actual principal collected from borrowers.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Ada Compliance

Compliance with the provisions of the Americans with Disabilities Act which establishes minimum requirements for facilities with public access to accommodate physically handicapped persons.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Aggregate Method

The accounting method wherein a servicer computes the sufficiency of the escrow funds by analyzing the account as a whole.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Air Rights

The ownership of the right to use, control or occupy the air space over a designated property, without the right to use the land surface.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Air Space

The space above the surface of land that is owned by the landowner and that may be divided and sold or leased to others.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Alternative Credit Enhancement Structure (ACES)

A program created by Fannie Mae to provide liquidity to the multifamily CMBS market.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Amenity

A feature that enhances property value. Examples are off-street reserved parking within a condominium community, tennis courts, a swimming pool or the proximity of public transportation.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Appurtenance

Anything belonging to or attached to land, such as a barn, garage or easement, that is part of the property and is therefore included in a sale or transfer.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Artificial Intelligence (AI)

Computer programs or systems that mimic human thought or decision making.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Asbestos

An insulative, fire- and heat-resistant material commonly used in insulation and roofing.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Avulsion

An abrupt and extensive erosion of land by a force of water and its subsequent deposit onto the property of another owner.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

B Pieces

A term applied to the classes (tranches) of CMBSs rated "BB" and lower. Also called below investment grade (BIG) by regulated institutional investors.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Balloon Risk

The risk that a borrower is unable to make a balloon payment at maturity.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

 

AUTHORIZED USAGE: All usage of this product is dictated by the terms and conditions within the MISMO 2018 Intellectual Property Rights (IPR) Policy For more information, please see complete Authorized Usage / Patent Disclosure Request or contact [email protected].