Business Glossary-Term List

The process of collateral reconciliation must be performed on a monthly basis for certain MBS portfolios. This is the reconciliation of the normalized actual principal balance to the scheduled principal balance. If there is a discrepancy, the loan or pool is either overcollateralized, or undercollateralized. An undercollateralization must be resolved immediately. An overcollateralization must be resolved as soon as possible, using unscheduled principal collections.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of using debt collection activities in an attempt to bring a non-performing loan current, which includes establishing a QRPC contact with the borrower(s). QRPC is a uniform standard for communicating with the borrower, co-borrower, or a trusted advisor (collectively referred to as "borrower") about resolution of the mortgage loan delinquency. The servicer must make every attempt to achieve QRPC. The collections process may include short term repayment plans if conditions warrant.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Process in which the Document Custodian validates that loan data matches the collateral received.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

The process of customer relationship management (CRM) between a servicer and borrower(s) including notifications, customer service, collections and statements.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of addressing borrower and associated customer concerns and requests to maintain a positive relationship. Examples: correspondence, required notifications.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Process of establishing formal management of business data assets, involving people, process and technology.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan

Process of establishing formal management of business data assets, and achieving access to the delivery of data across the enterprise to meet data consumption requirements.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan

Process of applying the practices, techniques and tools for achieving access to the delivery of data across the enterprise to meet data consumption requirements.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan

The process of transferring ownership of a property from the borrower to the servicer or investor to prevent foreclosure. If the Deed in Lieu is deemed a taxable event, this process includes reporting to both the Borrower and the IRS.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of removing a loan from the records of a servicer and investor by applying funds received as a result of a liquidation event. Includes ensuring that any appropriate third party notifications are made. In addition, the property may move into REO Administration.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Process of delivering the loan to the Investor.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Process of accounting for and obtaining documentation needed for the servicing or sale of the loan.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Process in which a mortgage loan is closed electronically through a secure environment in which closing documents are accessed, presented, and signed digitally.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Process in which the Notary Public and the Borrower(s) sign and notarize documents electronically while being in the same physical location.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Process of tracking, managing, certifying and safekeeping tamper evident authenticated copies of Electronic Notes (eNotes) and other electronic mortgage documents on behalf of Note owners and/or holders.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination, #Servicing

Process of delivering recordable documents to the appropriate government agency (typically the County Recorder or County Clerk) in an electronic format so that they become part of the public land records system.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

The process of determining the sufficiency of escrow account funds per RESPA guidelines, including correspondence to the appropriate party.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of returning excess escrow funds to the borrower after application of payoff funds.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of analyzing the Environmental, Social, and Governance impacts of a loan/security to ensure the sustainability and ethical impact of the investment. Also includes the ongoing review of the company's internal policies and procedures for compliance with industry ESG best practices.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan

The process of taking the legal steps necessary to liquidate the loan and extinguish the debt. Federal and State regulations dictate this process. In addition, if HUD insured the loan, HUD guidance for Claims Without Conveyance of Title (CWCOT) may apply. State regulations vary substantially and it is common practice to utilize third party legal counsel where the property is located. Loss Mitigation efforts and Bankruptcy filings could have an impact on the timing of the foreclosure efforts.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing