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:The loss or surrender of money, property, a right or privilege due to failure to perform.
Term Source: MBA Glossary
Term Type: Process
Focus Area: #MBAGlossary
A securities sale with settlement in the future.
Term Source: MBA Glossary
Term Type: Process
Focus Area: #MBAGlossary
A put for which no consideration or fee is paid. Also see PUT OPTION.
Term Source: MBA Glossary
Term Type: Process
Focus Area: #MBAGlossary
A periodic auction conducted by Fannie Mae, at which commitments to purchase mortgages are issued. Approved lenders specify a dollar amount and yield to Fannie Mae.
Term Source: MBA Glossary
Term Type: Process
Focus Area: #MBAGlossary
File Transfer Protocol
Term Source: LDD Acronym
Term Type: Process
Focus Area: #LDD, #MISMOApprovedAcronym
Payment of loan money by a lender to a borrower so that he or she can purchase real estate. Also the payment of money by investors to lenders in return for mortgages sold to them by the lender.
Term Source: MBA Glossary
Term Type: Process
Focus Area: #MBAGlossary
Disbursement of funds subsequent to the execution of a mortgage. Obligatory future advances are found in construction loans, and normally take precedence over another encumbrance recorded prior to disbursing the next.
Term Source: MBA Glossary
Term Type: Process
Focus Area: #MBAGlossary
Process in which the Lender obtains sufficient information to determine borrower eligibility.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
The process in which the Lender determines that an Adverse Action notice (Statement of Credit Denial, Termination, or Change) is necessary and provides it to the Borrower(s) within a specified timeframe.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of generating the Uniform Closing Dataset (UCD) file and verifying that it meets recipient requirements.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of defining instructions for the Settlement Agent to follow when closing a loan on behalf of the Lender.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of producing the unsigned closing documents package that satisfies the terms of the loan underwriting approval.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
The process of generating disbursement documentation which includes the ALTA Settlement Statement or Closing Statement, and the Seller/Borrower Disbursement Authorizations.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process in which the Lender generates the Power of Attorney document.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
The process in which the lender obtains estimated fees for title and settlement services related to the transaction.
Term Source: MISMO Life of Loan
Term Type: Process
Old nickname for a VA guaranteed mortgage loan.
Term Source: MBA Glossary
Term Type: Process
Focus Area: #MBAGlossary
Graduated Payment Mortgage
Term Source: LDD Acronym
Term Type: Process
Focus Area: #LDD, #MISMOApprovedAcronym
A type of flexible payment mortgage where the payments increase for a specified period of time and then level off. Usually results in negative amortization.
Term Source: MBA Glossary
Term Type: Process
Focus Area: #MBAGlossary, #MISMOApprovedAcronym
A graduated payment mortgage in which increases in a borrower's mortgage payments are used to accelerate reduction of principal on the mortgage. Due to increased payments, the borrower acquires equity more rapidly and retires the debt earlier.
Term Source: MBA Glossary
Term Type: Process
Focus Area: #MBAGlossary, #MISMOApprovedAcronym
A bond-like instrument issued by Freddie Mac that represents ownership in a large pool of residential mortgages. Principal is returned annually and interest is paid semi-annually.
Term Source: MBA Glossary
Term Type: Process
Focus Area: #MBAGlossary
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