Business Glossary-Term List

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: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #LDD, #MBAGlossary, #Origination, #Servicing

1) Process: The transfer of ownership, rights or interests in property, as in a mortgage, lease or deed of trust. Mortgages and other security instruments are regularly assigned from one investor to another and commitments by HUD/FHA to insure mortgages may be assigned by one originating lender to another before insurance. 2) Document: Transfers the beneficial interest in a instrument from one party to another.

Term Source: MBA Glossary, LDD Document

Term Type: Document, Process

Focus Area: #LDD, #MBAGlossary, #Origination, #Servicing

A written agreement that a property buyer will assume responsibility for the obligations of a mortgage from the builder or original owner.

Term Source: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #LDD, #MBAGlossary, #Origination, #Servicing

1) The price at which a seller will sell particular securities. In the securities and commodities trade, the highest price offered for a security or commodity at a given time. Also called a quotation or quote. 2) Describes required home repairs or improvements and provides an estimation of cost to complete. AKA: Estimate to Complete Work, Repair Estimate, Alteration Improvement and Repairs.

Term Source: MBA Glossary, LDD Document

Term Type: Data, Document

Focus Area: #LDD, #MBAGlossary, #Origination, #Servicing

Written authorization from a local municipal authority for the construction of a new building, or for extensive repairs or improvements on an existing structure.

Term Source: LDD Document

Term Type: Document

Focus Area: #Commercial, #LDD, #MBAGlossary, #Origination

A report given a lender by a designated compliance inspector indicating whether construction or repairs conform to conditions established by prior inspection.

Term Source: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #LDD, #MBAGlossary, #Origination

An agreement to lend money to a borrower that has yet to be identified, but is still subject to the approval of the lender. During HUD/FHA mortgage insurance processing, it indicates the satisfactory completion of technical processing involving the estimated cost of the project, the "as-is" value of the site, a detailed estimate of operating expenses and taxes, supportable costs, the financial and credit capacity of sponsors, financial requirements and mortgage amounts.

Term Source: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #LDD, #MBAGlossary, #Origination

1) A report run by an independent credit agency which verifies certain information concerning an applicant’s credit standing 2) Describes the borrowers credit history. Provided by a credit reporting bureau, or a service which consolidates reports from multiple sources into a single report (Tri-merge). AKA: Tri-Merge, Residential Mortgage Credit Report (RMCR).

Term Source: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #LDD, #MBAGlossary, #Origination

A report including a balance sheet and an income statement that describes the financial performance of a business entity or individual.

Term Source: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #Commercial, #LDD, #MBAGlossary, #Origination

1)A document which tells borrowers the approximate costs they will pay at or before settlement, based on common practice in the locality. Under requirements of the Real Estate Settlement Procedures Act (RESPA), the mortgage banker or mortgage broker, if any, must deliver or mail the GFE to the applicant within three business days after the application is received. 2)Describes the approximate costs borrower will pay at or before settlement, based on common practice in the locality. The mortgage banker or mortgage broker, if any, must deliver or mail the GFE to the applicant within three business days after the application is received. This document is a part of HUD Regulation X (RESPA/Reg X). AKA: Good Faith Estimate.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #MBAGlossary, #MISMOApprovedAcronym, #Origination

1) A formal decision given by a court or an obligation (such as a debt) created by the decree and/or a certificate evidencing such a decree. 2) Final determination by a court of the rights and claims of the parties to an action.

Term Source: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #LDD, #MBAGlossary, #Origination, #Servicing

A property description, recognized by law, that is sufficient to locate and identify the property without oral testimony. This is primarily a component of other documents (i.e. security instruments, title policies, commitments), but is received separately on some occasions.

Term Source: LDD Document, MBA Glossary

Term Type: Data

Focus Area: #Commercial, #LDD, #MBAGlossary, #Origination

1) A general term for any kind of paper or document signed by a borrower that is an acknowledgment of the debt and is, by inference, a promise to pay. When the note is secured by a mortgage, it is called a mortgage note and the mortgagee is named as the payee. 2) Establishes a legal obligation of the borrower to repay the debt. AKA: Promissory Note, Mortgage Note, Loan Agreement.

Term Source: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #Commercial, #LDD, #MBAGlossary, #Origination, #Servicing

Changes (updates) a previous appraisal that was prepared subject to completion of repairs or incomplete items. AKA: FNMA 442.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #MBAGlossary, #Origination

1) A public notice filed with a court stating that a mortgage borrower is behind in payment. AKA: NOD 2) The notice sent to defaulting borrowers, required by insurers or guarantors such as FHA, VA or MIC.

Term Source: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #LDD, #MBAGlossary, #Servicing

A legal document authorizing one person to act on behalf of another.

Term Source: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #Commercial, #LDD, #MBAGlossary, #Origination, #Servicing

A written agreement between a buyer and seller of real property, setting forth the price and terms of sale.

Term Source: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #Commercial, #LDD, #MBAGlossary, #Origination, #Servicing

An instrument used to transfer title from a trustee to the equitable owner of real estate, used when the performance of debt is satisfied under the terms of a deed of trust.

Term Source: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #LDD, #MBAGlossary, #Origination, #Servicing

Describes the funds that are payable at closing. Items that appear on the statement include real estate commissions, loan fees, points, and initial escrow amounts. Required by RESPA/Regulation X. In most cases the Settlement Statement is superseded by the CFPB Closing Disclosure.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #MBAGlossary, #Origination

A document by which parties acknowledge, by written record, that the debt of one is inferior to the debt or interest of another in the same property. Subordination may apply not only to mortgages, but to leases, real estate rights and any other types of debt interests.

Term Source: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #LDD, #MBAGlossary, #Origination