Business Glossary-Term List

Adds additional terms to the promissory note.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Servicing

1) A public notice filed with a court stating that a mortgage borrower is behind in payment. AKA: NOD 2) The notice sent to defaulting borrowers, required by insurers or guarantors such as FHA, VA or MIC.

Term Source: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #LDD, #MBAGlossary, #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), 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

Releases a specific parcel of real property from an existing security instrument.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Servicing

A document issued by a national government which certifies a person's identity, nationality, and passport identifier.

Term Source: LDD Document

Term Type: Document

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

Describes income for a particular pay period.

Term Source: LDD Document

Term Type: Document

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

Describes history of payments on a loan. AKA: Loan History.

Term Source: LDD Document

Term Type: Document

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

Describes the terms of a loan and loan payments, often emphasizing timing and amount of the first payment. AKA: Loan Payment Information Sheet, First Payment Letter.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Confirms the remaining principle balance of a loan that is being paid off or refinanced, based on a defined close or pay date. AKA: Demand, Demand Statement.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #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

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