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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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Curable Depreciation

See DEFERRED MAINTENANCE.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Current Asset Ratio

The ratio of current assets to current liabilities.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Current Assets

Assets that can be turned into cash within a year, such as accounts receivable or marketable securities.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Current Market Position

The amount of money a firm would gain or lose if it were to meet loan guarantees and mandatory commitments at current market prices.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Current Ratio

The ratio of current assets to current liabilities.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Current Yield

The ratio of interest to the actual face value of the investment instrument.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Custodial Accounts

Bank accounts for the deposit of funds belonging to others.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Cut-Off Date

The date up to which loan collections are included in remittances to investors.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Cycle (Economic)

A period of time such as when the economy is growing or when it is in a recession.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Daily Price Limits

The maximum number of points a contract is allowed to rise above or fall below the previous day�s settlement price, at which point all trading stops for the day.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Data Encryption Standard (DES)

An abbreviation for Data Encryption Standard and may include a 56-key or 128-key symmetric and asymmetric encryption methods.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Debt Capital

Money loaned at an agreed interest rate for a fixed term of years; distinguished from equity capital, which is money invested by owners (shareholders) for use in business operations.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Debt Coverage Ratio

A ratio of effective annual net income to annual principal and interest payments. Also called debt service coverage.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Debt Service Constant

A factor that, when multiplied by the original loan amount, yields the annual debt service payment (principal plus interest) required to amortize a loan.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Debt Service Coverage Ratio

A ratio of effective annual net operating income to annual principal and/or interest payments. Also called "debt service coverage."

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Debt-To-Income Ratio

Relationship of a borrower�s monthly payment obligation on long-term debts divided by gross monthly income, expressed as a percentage. Also called the "bottom ratio."

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Debt/Equity Ratio

The proportion of capital borrowed to the amount of capital invested out-of-pocket or obtained through the sale of common stock. Also called "leverage ratio."

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Default Interest Rate

The interest rate stipulated by certain mortgage documents which is triggered by a breach or nonperformance of the terms of a note, the covenants of a mortgage, or the terms of other loan documents.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Default Ratio

The occupancy level at which the effective gross income from an income-producing property is insufficient to pay operating expenses and debt service, thus creating the risk of default. The ratio is calculated by dividing the effective gross income into operating expenses plus debt service.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Deficiency

The difference between the balance outstanding on a loan and proceeds from the sale of the loan collateral.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

 

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