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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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Document Sequence

A document that expresses the sequence in which documents occur within a document set. The investor often dictates the document sequence to simplify document processing. A document set sometimes includes the DocumentSequence document itself. AKA: Documentation Order, Stacking Sheet.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Drivers License

A document which authorizes a person to operate a motor vehicle on a public roadway. Evidences a person's identity and driver's license identifier.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Early Start Letter

A letter issued by HUD or a Direct Endorsement lender deemed as an approval for mortgage insurance on the permanent financing before the beginning of construction.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Electronic Funds Transfer

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

Elevation Certificate

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

Employee Identification

A document issued by an employer which evidences a person's identity and employee identifier.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Energy Efficient Mortgage Worksheet

Determines loan amount for Energy Efficient Mortgage loan (loan to finance repairs that increase energy efficiency of the home). Required by HUD. Provided by Underwriter.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Equal Credit Opportunity Act Disclosure

Informs the borrower that all consumers are entitled to an equal chance to obtain credit. AKA: Reg B, ECOA.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Escrow Agreement

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

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Escrow For Completion Agreement

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

Escrow For Completion Letter

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

Estimate Of Closing Costs Paid To Third Party

Informs the borrower of estimated loan closing costs.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Estoppel Agreement

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

Evaluate Application Threshold

The lender decision that the application threshold requirements have been met, triggering the disclosure requirements.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Evaluate ATR/QM

Process of determining whether the loan satisfies Ability-to-Repay (ATR) requirements and/or meets the definition of a Qualified Mortgage (QM).

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Evaluation Report

A type of valuation report produced by an appropriately qualified, competent and independent person.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Evaluation Report: Desktop

A report produced by an appropriately qualified, competent and independent person and includes the development of a value conclusion without a physical inspection and may rely on expert systems and data.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Evaluation Report: Exterior Inspection

A report produced by an appropriately qualified, competent and independent person and includes the development of a value conclusion and includes an exterior inspection of the property and may also rely on expert systems and data.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Exchange Loan Application Data

Process in which the Lender communicates loan application data with business partners.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Execute Closing Documents

Process in which the Borrower signs the closing documents, either electronically, or using pen and paper.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

 

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