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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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Arrears

The situation in which mortgage interest and real estate taxes are paid at or after the end of the period for which they are levied. Late payment is also described as being in arrears.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Artificial Intelligence (AI)

Computer programs or systems that mimic human thought or decision making.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Asbestos

An insulative, fire- and heat-resistant material commonly used in insulation and roofing.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Ask Or Asking Price

The offering or sales price at which a security would be sold by a securities dealer to an investor.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Assemblage

The process of acquiring adjacent parcels of land to combine into a single site for development.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Assessed Valuation

The value that a taxing authority places upon real property that becomes the base for computing local property taxes. May also refer to a levy against property for a special purpose, such as a sewer assessment.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Assessment

A value factor assigned to real property and used to determine real property taxes. The process of reaching the assessed valuation. Also, an add-on tax to raise money for a special purpose.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Assessment Rolls

The public record of taxable property.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Assessor

A public official who appraises taxable property to reach its assessed valuation or base on which taxes are calculated.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Asset

A property or right owned, tangible or intangible, that has monetary value and is capable of providing future benefits to its owner.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Asset Turnover Ratio

The ratio of sales over total assets used as an indicator of how well the total investment in assets is being used to generate sales.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Assignee

The person to whom ownership, rights or interest in property is transferred.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Assignment

1) Process: The transfer of ownership, rights or interests in property, as in a mortgage, lease or deed of trust. Mortgages and other security instruments are regularly assigned from one investor to another and commitments by HUD/FHA to insure mortgages may be assigned by one originating lender to another before insurance. 2) Document: Transfers the beneficial interest in a instrument from one party to another.

Term Source: MBA Glossary, LDD Document

Term Type: Document, Process

Focus Area: #LDD, #MBAGlossary, #Origination, #Servicing

Assignment Of Lease

A mortgage clause that passes control of leases on an income producing property to the lender. Often a condition to making a loan to ensure, in the case of mortgage default, that any continuing income from the property goes directly to the lender.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Assignment Of Mortgage

A document that evidences the transfer of a mortgage from one party to another.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Assignment Of Rents

A transfer to the mortgagee of the right to collect rents from tenants in the event of default by the property owner.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Assignment Of Trade (AOT)

Loan sale arrangement where the seller assigns the trade with the broker/dealer to the buyer. The buyer of the loans is then responsible for delivery of the mortgage-backed securities to the broker/dealer.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Assignor

One who transfers to another ownership or interest in property.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Assumption

The act of taking over the previous borrower�s obligation of a mortgage note. Assumptions may be advantageous if the terms of the mortgage are advantageous and they are not changed by the lender when the mortgage is assumed.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Assumption Agreement

A written agreement that a property buyer will assume responsibility for the obligations of a mortgage from the builder or original owner.

Term Source: LDD Document, MBA Glossary

Term Type: Document

Focus Area: #LDD, #MBAGlossary, #Origination, #Servicing

 

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