Business Glossary-Term List

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

The process of converting a non-escrowed loan into an escrowed account due to non-payment of taxes or insurance or non-compliance with the note.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Establish a plan to cure a short term delinquency by temporarily increasing the amount or frequency of the payment without changing the terms of the loan.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #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

The process of transferring serviced loan(s) from one Servicer to another.

Term Source: MISMO (Non-LDD)

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of seeking reimbursement from the investor for allowable expenses based upon the pooling and servicing agreement.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of seeking reimbursement from the mortgage insurer for covered losses based upon the mortgage insurance policy.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #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

Authorizes lender to freeze a Home Equity Line of Credit in anticipation of a pay off.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination, #Servicing

Initial disclosure of potential rate or payment change per CFPB regulation.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Servicing