Business Glossary-Term List

The process of transferring ownership of a property from the borrower to the servicer or investor to prevent foreclosure. If the Deed in Lieu is deemed a taxable event, this process includes reporting to both the Borrower and the IRS.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of removing a loan from the records of a servicer and investor by applying funds received as a result of a liquidation event. Includes ensuring that any appropriate third party notifications are made. In addition, the property may move into REO Administration.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Process of tracking, managing, certifying and safekeeping tamper evident authenticated copies of Electronic Notes (eNotes) and other electronic mortgage documents on behalf of Note owners and/or holders.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination, #Servicing

The process of determining the sufficiency of escrow account funds per RESPA guidelines, including correspondence to the appropriate party.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of returning excess escrow funds to the borrower after application of payoff funds.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of taking the legal steps necessary to liquidate the loan and extinguish the debt. Federal and State regulations dictate this process. In addition, if HUD insured the loan, HUD guidance for Claims Without Conveyance of Title (CWCOT) may apply. State regulations vary substantially and it is common practice to utilize third party legal counsel where the property is located. Loss Mitigation efforts and Bankruptcy filings could have an impact on the timing of the foreclosure efforts.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Process of collecting loan-level data, deriving the Loan Application Register (LAR), and submitting the LAR to the CFPB.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination, #Servicing

The process in which prospective borrower(s) may attend homeownership education and/or counseling.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of verifying those items which are required to be escrowed per the terms of the note or the investor. In addition, HOA and Leasehold requirements are determined and set up for monitoring.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of reporting non-performing loan activities according to the terms of the servicing agreement. Non-performing loan activities are spelled out in the Default Management processes.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of ensuring that previously reported information accurately reflects the status of the loans in the investor's portfolio.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of remitting funds and reporting loan activities to investors according to the terms of the servicing agreement.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process in which a servicer and/or investor works with a delinquent borrower to determine an alternative to foreclosure. This may be a liquidation or retention workout. Arriving at the solution is largely governed by the mortgage documents and/or investor rules. Federal and State regulations drive the timing of many default management efforts. Servicers are not permitted to move forward on a foreclosure if other loss mitigation efforts are underway.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of promoting the property for sale.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Perform registration and/or update of ownership of beneficial and/or servicing rights to MERS Registry as loans are acquired, assumed, modified, transferred, sold, paid-off or deactivated.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of reporting non-performing loan activities according to the MI contract. Non-performing loan activities are spelled out in the Default Management processes.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of reconciling loans in a servicer's portfolio with the associated mortgage insurer.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of remitting funds and reporting loan activities to mortgage insurance companies based on the terms of the mortgage insurance company policies.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of verifying that the loan origination data was loaded accurately to the servicing system.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Process of tracking, managing, certifying and safekeeping paper Promissory Notes and other paper mortgage documents on behalf of Note owners and/or holders.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination, #Servicing