Business Glossary-Term List

Closing Disclosure using the alternative disclosures and modifications permitted for transactions without a seller. Refers to Exhibit H 25(J) "Modification to Closing Disclosure for Transaction Not Involving Seller" in the CFPB Integrated Mortgage Disclosures Regulation.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

For split disclosures, the borrower-only representation.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Closing Disclosure providing both borrower and seller sides of the real estate transaction. Refers to Exhibit H 25(A) "Mortgage Loan Transaction Closing Disclosure Model Form" in the CFPB Integrated Mortgage Disclosures Regulation.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

For split disclosures, the property seller-only representation.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

Describes the conditions that must be met in order to complete the closing. Provided by Lender to Closing Agent. AKA: Lender Closing Instructions, Settlement Agent Instructions.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

A financial disclosure giving an account of all funds received and expected at closing, including escrow deposits for taxes, hazard insurance and mortgage insurance. All FHA, VA and most conventionally financed loans use a uniform settlement statement called the "HUD-1."

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Any outstanding claim or encumbrance which, if valid, would affect or impair title. It can be removed by a quitclaim deed, release or court action. Also called a title defect.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

A type of insurance where the insured agrees to carry a specified proportion of the policy amount to the actual value of the property insured at the time of the loss. Thus, a portion of the property value is self-insured. In federal multifamily housing programs, a clause which forces an insured to share in a loss if he/she is underinsured at the time of the loss. For a reduced premium, the insured is obligated to carry an amount of insurance to a specified minimal level, usually prescribed to be a fixed percentage of the value of the insured property. Failure of the insured to insure to that level results in a penalty in payout equal to the amount deficient.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

The instrument that is actually delivered in fulfillment of the Chicago Board of Trade GNMA-CDR. Similar to warehouse receipts used for agricultural commodities.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

A document the collection officer uses to record all collections related to the Single Family Property Disposition Program (Section 204(g)). The document provides the initial point of an audit trail regarding all collections. Form HUD-235 (5/89).

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Servicing

The form used by a mortgage servicer in reporting collection from mortgagors, including payments in full, repayment of advances, tax and insurance funds for foreclosed mortgages and any other items not remitted as regular installment payments.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Short-term, negotiable, unsecured notes of highly reputable business firms.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

HUD's estimate of the fair market value of a property in foreclosure. Mortgagees must bid the CAFMV at the foreclosure sale to reserve the option to retain or convey the property to HUD.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

An agreement, often in writing, between a lender and a borrower, to loan money at a future date, subject to specified conditions. In secondary marketing, an agreement, in writing, between a lender and an investor to buy and sell mortgages under specific terms.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

One of Fannie Mae's primary tools for neighborhood and community revitalization, the CHIML is designed for the low- to moderate-income homebuyer or homeowner who wishes to purchase or refinance a home that needs modest, rather than substantial, repairs.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

The lender uses a comparative income analysis document to compare the performance of a self-employed borrower's business over a period of years to determine its viability. Fannie Mae Form 1088 July 96.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

A bond furnished by a contractor to guarantee completion of construction.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Establishes that the borrower will accommodate changes to loan documentation that result from errors and omissions, to ensure that the documents conform to industry standards. AKA: Errors and Omissions, E & O.

Term Source: LDD Document

Term Type: Document

Focus Area: #LDD, #Origination

A report given a lender by a designated compliance inspector indicating whether construction or repairs conform to conditions established by prior inspection.

Term Source: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #LDD, #MBAGlossary, #Origination

A policy which covers a variety of general liability exposures, including premises, property and operations, products liability, owner's and contractor's protective, contractual liability, elevator liability and employer's liability.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary