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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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Obtain Taxpayer Consent

Process of obtaining borrower consent to share with other parties or use tax information received from the Internal Revenue Service.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Obtain Warehouse Funds

Process of securing interim, short-term funds from the Lender's line-of-credit (Warehouse Line) established with a Warehouse Bank to fund the loan closing.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Order Compliance/Fraud Tests

Process of requesting analysis and testing for regulatory compliance.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Order Contract Underwriting

Process in which the Lender engages a third party to underwrite the loan per Investor Guidelines.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Order Credit Report

Process of obtaining a credit report to help assess the ability and likelihood of the Borrower(s) to repay the loan

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Order Flood

Process of obtaining a Flood Certificate which indicates whether the subject property is in a flood zone.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Order Fraud Test

Process of requesting analysis and testing for fraud prevention.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Order MI Commitment

Process of obtaining a commitment from a private mortgage insurance company.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Order MI Rate Quote

Process of obtaining a rate quote from a private mortgage insurance company.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Order Property Valuation

Process of obtaining the Property Valuation, which may consist of an Appraisal, Automated Valuation Model (AVM), and/or Broker Price Opinion (BPO) depending on Investor/Insurer requirements and Lender policies.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination, #Servicing

Order Third Party Service Details

Process of obtaining detailed information from external resources to verify loan data during the loan origination process.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Order Third Party Services

Process of engaging external resources to obtain and/or verify loan data during the loan origination process.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Order Title Policy

Process of obtaining a Title Insurance Policy to ensure that the necessary and proper ownership rights are established when real estate is conveyed from one party to another. Title is ordered to confirm lien position and protect ownership interest.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Order Title Services

Process of ordering services related to Title Insurance.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Order Verifications

Process of obtaining electronic confirmation of employment, bank accounts, liabilities etc.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Origination

Securing a completed mortgage application from a commercial or residential borrower.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary, #MISMOLifeOfLoan

Perform Assumption Processing and Validation

The process of handling the assumption of an existing loan by a new party. The servicer and/or investor underwrites and approves the assumption. The servicer retains information on the original borrower and adjusts the loan information to reflect the new borrower.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Perform Charge Off

The process of writing off a full or partial loan balance that is unlikely to be collected. This is an accounting event where the creditor/investor no longer considers the amount owed as a source of profit but rather counts it as a loss.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Perform Closing

Process of completing various functions related to performing a closing; including but not limited to gathering additional requirements as specified in the approval, generating and delivering the closing package to the Settlement Agent, and execution of the closing documents by the Borrower(s).

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Perform Closing and Funding

The process of generating and executing documents to secure the loan collateral, and disbursing the proceeds.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

 

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