Business Glossary-Term List

A written statement from the servicer to the borrower or their authorized agent, outlining the actions of the debtor is entitled by law to take or refuse to take when a debt is in collection. AKA: Statement of Rights

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Servicing

Establishes the terms of the divorce. Provided by a court or legal authority. AKA: Final Judgment (divorce), Abridgment of Judgment (divorce).

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Describes certification that a document has been delivered to the borrower.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Establishes a repeatable direct deposit of funds into an account of a borrower. Used by servicing. AKA: EFT, Automatic Funds Transfer.

Term Source: LDD Document

Term Type: Document

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

Certifies elevation information necessary to ensure compliance with community floodplain management ordinances, to determine the proper insurance premium rate, and to support a request for a Letter of Map Amendment (LOMA) or Letter of Map Revision based on fill (LOMR-F).

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Establishes escrow accounts for taxes and insurance. Agreement between borrower and lender.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

An annual review and recalculation of the escrow account based on actual amounts paid into the escrow account and actual amounts disbursed from the escrow account as required by RESPA. The actual amounts are compared to the projected amounts from the prior year's disclosure.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Servicing

Establishes work to be completed on a property and the terms under which the funds for the work will be released. AKA: Holdback, Work Escrow Agreement.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Confirms work on the property has been completed and any funds held in escrow can be released. AKA: Work Escrow Mortgagee Assurance of Completion (2300).

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Confirms the lender agrees to waive collecting a monthly payment for taxes and insurance (escrow or impound account). Informs the applicant of their responsibilities to pay tax/insurance bills when due, whether an escrow waiver fee will be imposed, and information regarding lender placement of insurance. AKA: Notice Regarding Payments For Homeowners Insurance And Property Taxes, Escrow Account Notice.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Servicing

Establishes that certain statements of fact are correct as of the date of the statement and can be relied upon by a third party (including a prospective lender or purchaser).

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Informs the borrower that flood insurance may be required by the lender. AKA: Special Flood Hazard Notice, Flood Hazard Notification.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

An agreement between a servicer and a borrower in which the servicer agrees to a temporary reduction or suspension of the mortgage payments. At the end of the period, the borrower is expected to repay the suspended amount based on agreed terms and resume normal payment. A forbearance plan is usually occurs when a borrower experiences a temporary, significant loss of income.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Servicing

A notice from the servicer to the borrower regarding the intention or status of placing a homeowner's insurance policy on the borrower's property in order to protect the servicer's investment. The servicer has been notified of lapsed or insufficient insurance coverage. May include any required supplemental insurance policies.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Servicing

Notice to the borrower that the servicer has cancelled the homeowner's insurance it force placed on the property at the borrower's expense. The letter may Include premium refund terms.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Servicing

The servicer's initial notice to the borrower of the intent to force place homeowner's insurance on the property unless evidence of an active acceptable policy is provided. AKA: Initial Notice of Intent To Force Placed Insurance

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Servicing

The servicer's second and final notice to the borrower of the intent to force place homeowner's insurance on the property unless evidence of an active acceptable policy is provided. The borrower has provided insufficient documentation in response to the Initial Notice of Intent To Force Placed Insurance. AKA: Second And Final Response For Insufficient Documentation

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Servicing

Notice to the borrower that the servicer has placed homeowner's insurance on the property at the borrower's expense.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Servicing

ForcePlacedInsuranceNotice:Renewal : Notice to the borrower that the servicer will renew force placed homeowner's insurance unless the borrower provides evidence that they have secured an alternate acceptable policy.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Servicing

The servicer's second and final notice to the borrower of the intent to force place homeowner's insurance on the property unless evidence of an active acceptable policy is provided. The borrower has not responded to the Initial Notice of Intent To Force Placed Insurance. AKA: Second And Final Notice of Intent To Force Placed Insurance

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Servicing