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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Search on:Coverage for the loss to boilers and machinery caused by explosion or mechanical breakdown. The policy may cover damage to the boilers, machinery, other property and business interruption.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A Latin term meaning "in good faith," without fraud.
Term Source: MBA Glossary
Term Type: Other
Focus Area: #MBAGlossary
An obligation written under seal. For example, the obligation may be to make good if a third party defaults (performance bond), or betrays a trust (fidelity bond), or an obligation to pay interest and principal as specified. The latter type of bond is a debt instrument which may be secured by a mortgage or a pool of mortgages.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A state or local sponsored method of assisting low income borrowers and first time homeowners in the purchase of a home at a reduced interest rate.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A long-term absolute net lease with a tenant who has a very high credit ceiling. The lease must be noncancelable and must call for a net rental equal to or above the amount of debt service.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
The actual cost of assets purchased or acquired.
Term Source: MBA Glossary
Term Type: Data
Focus Area: #MBAGlossary
The capitalized cost of an asset, less depreciation taken for accounting purposes, based on the method used for the computing of depreciation over the useful life of the asset. The actual value of an asset after deducting depreciation and all liabilities is the "net book value."
Term Source: MBA Glossary
Term Type: Data
Focus Area: #MBAGlossary
Securities that are kept in computerized record form rather than paper certificate form.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
Electronic registration of ownership and interests in securities.
Term Source: MBA Glossary
Term Type: Process
Focus Area: #MBAGlossary
A mortgagor who receives funds in the form of a loan with the obligation of repaying the loan with interest (if applicable), and in addition, any person purchasing (aka purchaser) the real property securing the loan, executing the promissory note, executing a guaranty of the debt evidenced by the promissory note, or signing a security instrument in connection with a loan.
Term Source: MBA Glossary
Term Type: Actor
Focus Area: #MBAGlossary
An agreement wherein the borrower/guarantor has personally agreed to fully repay all amounts owed under a mortgage loan, irrespective of whether the collateral is adequate to retire the debt. This agreement gives the holder of the note, or other negotiable instrument, the right to recover against the borrower/guarantor personally, including any and all assets of the borrower/ guarantor.
Term Source: MBA Glossary
Term Type: Other
Focus Area: #MBAGlossary
An agreement wherein the borrower/guarantor has personally agreed to repay a set dollar amount, all amounts exceeding a stated dollar amount or a percentage of the outstanding balance of the mortgage loan. This agreement gives the holder of the note, or other negotiable instrument, the right to recover against the borrower/guarantor personally, including any and all assets of the borrower/guarantor, but only to the extent specified. For example, a borrower/guarantor may agree to pay the first $1 million of a $5 million loan or the top 25% of the loan.
Term Source: MBA Glossary
Term Type: Other
Focus Area: #MBAGlossary
See DEBT-TO-INCOME RATIO.
Term Source: MBA Glossary
Term Type: Data
Focus Area: #MBAGlossary
A variable rate loan that attempts to smooth the impact of rate increases on borrowers by deferring a portion of high interest rates until maturity. Usually, all interest above a certain rate is deferred to maturity.
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
Failure to perform under a contract or the violation of a legal obligation.
Term Source: MBA Glossary
Term Type: Process
Focus Area: #MBAGlossary
The figure at which occupancy income is equal to all required expenses and debt service. Used to determine the amount of cash flow necessary to operate a residential or commercial property.
Term Source: MBA Glossary
Term Type: Data
Focus Area: #MBAGlossary
In a retail lease, the point specified in absolute sales dollars or sales dollars per square foot, above which the tenant has agreed to pay percentage rent in addition to base rent. For example, in addition to base rent, a tenant may agree to pay 2% of annual gross sales above $2 million. In this case, $2 million is the breakpoint.
Term Source: MBA Glossary
Term Type: Data
Focus Area: #MBAGlossary
A loan which enables a homebuyer to get financing to make a down payment and pay closing costs on a new home before selling the present house. Also called "gap financing."
Term Source: MBA Glossary
Term Type: Document
Focus Area: #MBAGlossary
A term used to describe coverage which extends beyond "standard" peril insurance policies, i.e., fire and extended coverage, named perils, etc.
Term Source: MBA Glossary
Term Type: Other
Focus Area: #MBAGlossary
An endorsement to a general liability policy which grants expanded coverage to property in the care, custody or control of the insured, property which is not normally insured if damaged by the insured's negligence.
Term Source: MBA Glossary
Term Type: Other
Focus Area: #MBAGlossary
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