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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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Contractor

A person or company who agrees to do work and/or furnish materials for a contracted price. Subcontractors are often hired by the contractor to perform specialized or technical labor.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Corporation

A business entity owned by a group of owners, called stockholders. A corporation is considered an artificial person under law.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Correspondent

A specialized type of mortgage banker whose function is limited to the origination of mortgage loans which are sold to other mortgage bankers or investment bankers under a specific commitment.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Credential Service Provider (CSP)

Credential Service Provider (often referred to as the AIA, or Accredited Issuing Authority).

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Custodian

Usually a commercial bank which holds for safekeeping mortgages and related documents backing a mortgage-backed security. Custodians may be required to examine and certify documents.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Dealer

An investment banker or firm in the business of buying and selling mortgage-backed securities not as an agent, but as a principal. Unlike brokers, dealers hold inventories of securities.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Department Of Housing And Urban Development (HUD)

A governmental entity responsible for the implementation and administration of housing and urban development programs. HUD was established by the Housing and Urban Development Act of 1965 to supersede the Housing and Home Finance Agency.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary, #MISMOApprovedAcronym

Department Of Veterans Affairs (VA)

A cabinet-level agency of the federal government. The Servicemen�s Readjustment Act of 1944 authorized the agency to administer a variety of benefit programs designed to facilitate the adjustment of returning veterans to civilian life. Among the benefit programs is the VA Home Loan Guaranty program, which encourages mortgage lenders to offer long-term, low down payment financing to eligible veterans by partially guaranteeing the lender against loss upon foreclosure.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary, #MISMOApprovedAcronym

Developer

A person or entity who prepares raw land for building sites or rehabilitates existing buildings.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Document Custodian

Financial institution that contracts with a lender to maintain custody of certain mortgage documents in the lender�s or investor�s behalf.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Dower

The rights a widow has to her husband�s real property at his death.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Environmental Protection Agency (EPA)

The agency responsible for enforcing environmental liability.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Escrow Agent

The person or organization having a fiduciary responsibility to both the buyer and seller (or lender and borrower) to see that the terms of the purchase/sale (or loan) are carried out. Also called escrow company or escrow depository.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Escrow Company

An organization established to act as an escrow agent.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Executor

A person named in a will to administer an estate. The court will appoint an administrator if no executor is named. Executrix is the feminine form.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Fannie Mae (FNM)

The nation�s largest mortgage investor, created in 1968 by an amendment to Title III of the National Housing Act (12 USC 1716 et seq.). This stockholder-owned corporation, a portion of whose board of directors is appointed by the President of the United States, supports the secondary market in mortgages on residential property with mortgage purchase and securitization programs. aka Federal National Mortgage Association (FNMA).

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary, #MISMOApprovedAcronym

Fannie Mae DUS Lender

A lender designated by Fannie Mae who originates, underwrites, closes and services Fannie Mae approved multifamily mortgage loans.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Farmers Home Administration (FmHA)

A former government agency within the Department of Agriculture that operated under the Consolidated Farm and Rural Development Act of 1921 and Title V of the Housing Act of 1949. This agency provided financing to farmers and other qualified borrowers who were unable to obtain loans elsewhere. See RURAL HOUSING SERVICE.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Federal Deposit Insurance Corporation (FDIC)

Originally established by the Banking Act of 1933 to protect depositors from loss. As a result of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), the FDIC administers the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF).

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary, #MISMOApprovedAcronym

Federal Emergency Management Agency (FEMA)

Federal agency which, among other things, directs the activities of the Federal Insurance Administration and establishes flood insurance rates and terms of coverage, issues policies, processes claims and identifies and maps flood-prone areas.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary, #MISMOApprovedAcronym

 

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