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:An agreement to lend money to a borrower that has yet to be identified, but is still subject to the approval of the lender. During HUD/FHA mortgage insurance processing, it indicates the satisfactory completion of technical processing involving the estimated cost of the project, the "as-is" value of the site, a detailed estimate of operating expenses and taxes, supportable costs, the financial and credit capacity of sponsors, financial requirements and mortgage amounts.
Term Source: LDD Document, MBA Glossary
Term Type: Document
Focus Area: #LDD, #MBAGlossary, #Origination
A form reproduced locally by HUD/FHA offices and varying in content depending on local conditions. It lists the most common conditions imposed on conditional commitments, giving each a number. Only the number of the condition is entered on the commitment itself, and the list is attached. Also see VC sheet.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A provision of a balloon mortgage which, at the time of the scheduled balloon payment, allows the borrower to convert to a fixed rate for a fixed period which will fully amortize the mortgage.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A contract for the sale of a property in which transfer of title to the buyer is contingent on fulfillment of certain conditions.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
Limitations on the use of land and resulting penalties for failure to comply. Commonly used by land subdividers on newly plotted areas.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
The basic condominium documents that must be registered by the originating property owner prior to the conveyance of the first unit sold. The declaration thoroughly describes the entire condominium entity, including each unit and all common areas, and specifies essential elements of ownership that permanently govern its operation. Also known as a "master deed."
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
Confirms the percentage of a Condominium (Condo) Association or phase is currently occupied.
Term Source: LDD Document
Term Type: Document
Focus Area: #LDD, #Origination
Authorizes a person to sign documents for a borrower.
Term Source: LDD Document
Term Type: Document
Focus Area: #LDD, #Origination
An agreement between a general contractor and an owner/developer stating the specific duties the general contractor will perform according to blueprints and specifications at a stipulated price and terms of payment.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
Describes in detail the construction costs to build a new structure.
Term Source: LDD Document
Term Type: Document
Focus Area: #LDD, #Origination
A written agreement between a lender and a builder and/or borrower which details the specific terms and conditions of a construction loan, including the schedule of payments.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
Notice attempted indirectly by newspaper or public record, or similar device, whether received or not, which satisfies the legal requirements for notification.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
Describes Adjustable Rate Mortgages and reviews their benefits and risks. AKA: CHARM.
Term Source: LDD Document
Term Type: Document
Focus Area: #LDD, #Origination
A clause in a contract that requires the completion of a certain act or the occurrence of a certain event.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
An agreement between two or more parties which creates an obligation to do or not to do a particular thing.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A contract between a purchaser and seller of real property to convey title after certain conditions have been met and payments have been made.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A feature of a mortgage which allows the conversion to another interest rate, mortgage term or type of mortgage instrument.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A document that notifies the borrower of upcoming conversion options and scheduled interest rate changes..
Term Source: LDD Document
Term Type: Document
Focus Area: #LDD, #Origination
A type of adjustable rate mortgage that may be converted to a fixed rate mortgage at specified intervals during a predetermined time period. In income property lending, a mortgage in which lender-provided funds convert to equity ownership after a predetermined period of time.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A Fannie Mae mortgage purchase that may be converted to the same yield offered in the most recent Free Market Auction.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
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