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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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Ability to Repay (ATR)

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

Activate MI

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

Add Mortgage Loss Payee Clause for Each Policy

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

Administer Fees

The process of setting up and managing fee names, fee amounts and other rules for use in systems.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan

Administer Loan

The cyclical process of receiving principal, interest, taxes and insurance (PITI) payments from borrowers, applying the funds to a loan's financial record and ensuring that these payments are properly reported and disbursed to Investors, Insurers, Tax Agencies and others as appropriate.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Administer Payoff

The process of calculating and applying loan payoff proceeds and clearing the loan from the servicer's portfolio.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Administer Prepayment Penalties

The process of determining rules and assessing fees for early payoff of a loan based on the terms of the mortgage note.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Administer REO

The process of managing and marketing properties obtained through default on behalf of the investor or guarantor. Often an insurer will market a foreclosed property on their own behalf.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Application

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

Apply Payoff Funds

The process of applying the funds towards payoff of a loan.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Assess Credit Risk

The process of analyzing credit scores to determine risk within the portfolio.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Automated Underwriting System (AUS)

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

Board Loan

The process of establishing a loan on a servicing system, either through new loan origination and set-up or via a servicing transfer.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Borrower Withdraws

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

Calculate and Verify Sufficient Coverage

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

Clear At Closing Conditions

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

Closing/Funding

Process of Closing and Funding a mortgage loan.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Collaborate on CD Data

Process of collecting and confirming both internally and with third parties, the data that will be used to produce a Closing Disclosure (CD).

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Collaborate on Final CD Fees

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

Collaborate on UCD/CD

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

 

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