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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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Accession

Title to property is gained through its addition to the owner�s existing real estate and can apply to both land and improvements.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Accident

An unplanned, unexpected and undesigned event which occurs suddenly at a definite place. Also see OCCURRENCE.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Accident And Health Premium

A portion of the amount paid by a borrower for mortgage insurance that ensures the continuance of mortgage payments in the event of a mortgagor�s disability or illness.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Accommodation Paper

A promissory note or other negotiable instrument signed by a third party (accommodation party) guaranteeing the repayment of a loan.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Accommodation Party (Endorser)

A person who lends his name to guarantee a loan for another by signing a promissory note, bill or other negotiable instrument; the endorser becomes the guarantor of the loan and is therefore responsible for its repayment.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Accounts Payable

Money owed by a business to suppliers of goods or services. Accounts payable are considered current liabilities on the balance sheet.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Accounts Receivable

Money owed to a business for goods or services provided to customers. Accounts receivable are classified as current assets on the balance sheet, with a contra account for bad debts on receivables.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Accredited Issuing Authority (AIA)

An accredited credential service provider within the domain of the SISAC.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Accretion

A build up of land by natural forces, such as wind, waves or the flow of water.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Accrual Basis Of Accounting

An accounting method under which income and expenses are charged to the periods for which they are applicable, rather than when payment is made or received. In contrast, cash accounting is the method calling for income and expenses to be based on payment being made or received.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Accrual Bonds

A bond on which the interest accrues, but is not paid to the investor during the period of accrual. Instead, the amount accrued is added to the principal balance and is paid at maturity. Also called accretion bonds or Z-bonds.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Accrued Interest

Interest earned for the period of time elapsed since interest was last paid.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Acknowledgement

A formal declaration attached to or part of an instrument, made before a duly authorized officer (usually a notary public) by the person who has executed that instrument, the execution being a free act and deed.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Acord Form

A form utilized by the insurance industry for use between an Agency and a Company for Organization, Research and Development.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Acquisition And Development Loan (A and D Loan)

A loan for the purchase and preparation of raw land for development. Usually a construction loan or land sale is the source of repayment.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Acquisition Cost

In a HUD/FHA transaction, the price the borrower paid for the property plus any of the following costs: closing, repairs or financing (except discounts in other than a refinance transaction). Does not include prepaid discounts in a purchase transaction, mortgage insurance premiums or similar add-ons.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Acquittance

A document evidencing payment in full of a debt obligation. One example would be a satisfaction of mortgage.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Acre

A unit of measure for land, 43,560 square feet.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Act Of God

An event which causes damage by nature such as a flood, earthquake or winds; an occurrence which was not caused by man.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Action To Quiet Title

A court action to remove any interest or claim in or title to real property; to remove a cloud on title.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

 

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