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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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#MBAGlossary
Assumption Fee

The amount paid a lender for the paperwork and processing of records necessary to approve and document a new debtor.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Assumption Of Mortgage

A buyer�s acceptance of primary liability for payment of an existing note secured by a mortgage or deed of trust. The seller remains secondarily liable, unless specifically released by the lender.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

At-Risk Rules

Internal Revenue Service rules restricting leverage opportunities by limiting a taxpayer�s deductible losses to the amount one has "at-risk." One is "at-risk" to the extent of cash contributed and amounts borrowed for which one is responsible for payment from personal assets.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

At-The-Money

In options trading, the point at which the strike price is equal to the market price of the underlying security.

Term Source: MBA Glossary

Term Type: Event

Focus Area: #MBAGlossary

Attachment

The act of taking property by judicial order into the custody of the court as security for payment of a judgment in an impending suit.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Attorney-In-Fact

The agent who is granted authorization to perform specific acts on behalf of another.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Attornment Agreement

A letter acknowledging a new owner as a landlord or a new organization as a loan servicer. Also called Attornment.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Audit

The official examination and verification of bookkeeping accounts to prove the accuracy of figures and the adequacy of accounting controls. An audit may be done by public accountants hired for this purpose or by a company�s own employees. The latter is called an internal audit.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Authorization

Ability to assign responsibility, ownership or role in order to perform some activity.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Automated Clearing House (ACH)

Electronic drafting system that debits an authorized bank account and electronically transfers funds scheduled for remittance.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary, #MISMOApprovedAcronym

Automatic Drafting

A payment method in which funds are automatically debited from a borrower�s checking or savings account.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Automatic Program

A VA program that enables eligible single-family lenders to conduct the processing and closing of VA single-family loan applications without VA�s prior review.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Automatic Stay

An action that enjoins collection efforts from proceeding.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Available Funds

All funds available or collected including prepayments and servicer advances.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Available Funds Cap

Limited amount of interest payable to certificate holders to the extent of interest accrued on a group/pool of mortgage loans.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Average Life Of A Mortgage

A statistic used to estimate the yield on mortgages. Most mortgages written for long terms pay off earlier, either voluntarily or by foreclosure after default. For example, 30-year mortgages have traditionally been considered to have approximately a 12-year average life. Investors base impact of discounts or premiums on the yield of a mortgage on the average life, as opposed to the written term.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Average Rate Of Return

The return on an investment as calculated by averaging the total cash flows over the years during which the cash flows are received by the investor.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Avulsion

An abrupt and extensive erosion of land by a force of water and its subsequent deposit onto the property of another owner.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

B Pieces

A term applied to the classes (tranches) of CMBSs rated "BB" and lower. Also called below investment grade (BIG) by regulated institutional investors.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Back-To-Back Escrow

An escrow set up to facilitate the simultaneous purchase of one property and the sale of another property by the same party.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

 

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