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:Hazard coverage obtained by a lender to protect its security interest in a property where the borrower has failed to renew existing coverage. Premiums for this coverage are usually above market rates and most mortgage instruments allow for this premium to be charged to the borrower.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
An agreement between a buyer and seller for delivery of a specific commodity at a given time in the future, at a strike price determined at present. Also called forward delivery contract.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A standby commitment that can be serviced by the projected cash flow of a property.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
Contracts for the purchase or sale of commodities in the future, usually on or before a particular date. Futures contracts on fixed-income instruments, such as Treasury bills, are referred to as financial futures.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
See OPTIONS ON FUTURES.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A notice to an employer or other asset holder that monies, wages or property of a debtor must be applied to a specific debt or creditor.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A repurchase agreement covering the time (usually 20 days) between the date an issuer submits documents to the Government National Mortgage Association for final pool approval and the date the new security is actually issued.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A mortgaged-backed securities program in which individual mortgage lending firms issue securities and pass principal and interest payments directly to the securities holders, whether or not the mortgagor makes the monthly payment. Ginnie Mae mortgage-backed securities are backed by the "full faith and credit" of the U.S. government.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A mortgaged-backed securities program in which pools of loans from several lenders are combined into a single issue of securities. A central paying agent passes principal and interest payments directly to the securities holders. GNMA II pools are generally larger than those formed by individual lenders under GNMA I. Ginnie Mae mortgage-backed securities are backed by the "full faith and credit" of the U.S. government.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A seller's strict compliance with rules and conditions regarding the delivery of securities to a buyer.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
1)A document which tells borrowers the approximate costs they will pay at or before settlement, based on common practice in the locality. Under requirements of the Real Estate Settlement Procedures Act (RESPA), the mortgage banker or mortgage broker, if any, must deliver or mail the GFE to the applicant within three business days after the application is received. 2)Describes the approximate costs borrower will pay at or before settlement, based on common practice in the locality. The mortgage banker or mortgage broker, if any, must deliver or mail the GFE to the applicant within three business days after the application is received. This document is a part of HUD Regulation X (RESPA/Reg X). AKA: Good Faith Estimate.
Term Source: LDD Document
Term Type: Document
Focus Area: #LDD, #MBAGlossary, #MISMOApprovedAcronym, #Origination
Mortgages insured or guaranteed by the government (FHA, VA, RHS or State Bond Agencies).
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A lease providing for a variable rental rate, specified by terms set forth in the lease or by reappraisal using a predetermined formula. Also called a "graded lease."
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
Immigration status which permits the holder to work in the United States, obtain a social security number and become an apprentice to attain citizenship.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A lease in which the lessor is responsible for all costs of maintaining the property. Opposite of net lease, where the tenant pays these costs.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
Interest rate on a mortgage including servicing fees.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
Debt obligations used in the housing bond market whose principal and interest payments are backed by a letter of credit from a bank or other source of funds.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A loan guaranteed by a government agency or any other interested party.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A promise by one party to pay a debt or perform an obligation contracted for or by another in the event that the obligor fails to pay or perform as contracted. For VA loans, the amount of money VA will reimburse a lender upon default of a VA mortgage. Also referred to as the amount of entitlement or eligibility.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
Insurance coverage which provides compensation to the insured in case of property loss or damage.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
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