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 process of managing all activities related to non-performing loans. These activities maybe driven by the borrower willingness to participate, loan documents, investor regulations, servicer requirements and state and federal regulations.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process of establishing and managing any required trust accounts where funds are allocated for payment of taxes, insurance and other items as they become due. In addition, the process of tracking the status of tax and insurance payments on non-escrowed loans.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process of obtaining hazard insurance on a secured property when there is no existing policy in force.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process of tracking damage notifications, repairs, disaster declaration driven claims, management of insurance proceeds and the interaction between insurance companies and borrowers.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process of assigning and managing loans made under alternative loan programs and products such as state bond programs, ARMs, HELOCs, Buydowns or loans made to an acknowledged VIP. Includes compliance with Servicemember's Civil Relief Act (SCRA).
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process of identifying, evaluating and quantifying risks followed by coordinated and economical application of resources to minimize, monitor and control the probability or impact of that risk.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process of posting premiums received and remitting payments to mortgage insurers.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process of protecting the loan's lien position in situations where borrowers are not current on applicable Property Taxes, Hazard Insurance, HOA dues, Leasehold payments.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process of removing MI coverage based upon investor guidelines. This may be automatic or upon the request of the borrower and includes appropriate notifications.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
Monitoring bankruptcy activities and performing administrative tasks on behalf of the trustee, borrower or legal entities associated with the bankruptcy. Bankruptcy processes are fairly standard and driven by federal regulations and the Chapter filed.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process in which the Servicer notarizes the Reconveyance document. (May be referred to as Lien Release, Release of Lien, Lien Discharge, or Deed of Reconveyance)
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process of notifying mortgage insurers that a new servicing relationship has been established.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process of notifying interested third parties that a new organization is servicing a loan. This includes but is not limited to Mortgage Insurer(s), Hazard Insurer(s), Investors, Optional Insurance Vendor(s), Tax Service Company(ies) and Homeowners Associations.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
Process of obtaining the Property Valuation, which may consist of an Appraisal, Automated Valuation Model (AVM), and/or Broker Price Opinion (BPO) depending on Investor/Insurer requirements and Lender policies.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination, #Servicing
The process of handling the assumption of an existing loan by a new party. The servicer and/or investor underwrites and approves the assumption. The servicer retains information on the original borrower and adjusts the loan information to reflect the new borrower.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process of writing off a full or partial loan balance that is unlikely to be collected. This is an accounting event where the creditor/investor no longer considers the amount owed as a source of profit but rather counts it as a loss.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process of collateral reconciliation must be performed on a monthly basis for certain MBS portfolios. This is the reconciliation of the normalized actual principal balance to the scheduled principal balance. If there is a discrepancy, the loan or pool is either overcollateralized, or undercollateralized. An undercollateralization must be resolved immediately. An overcollateralization must be resolved as soon as possible, using unscheduled principal collections.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process of using debt collection activities in an attempt to bring a non-performing loan current, which includes establishing a QRPC contact with the borrower(s). QRPC is a uniform standard for communicating with the borrower, co-borrower, or a trusted advisor (collectively referred to as "borrower") about resolution of the mortgage loan delinquency. The servicer must make every attempt to achieve QRPC. The collections process may include short term repayment plans if conditions warrant.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process of customer relationship management (CRM) between a servicer and borrower(s) including notifications, customer service, collections and statements.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
The process of addressing borrower and associated customer concerns and requests to maintain a positive relationship. Examples: correspondence, required notifications.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
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