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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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Adverse Possession

The right by which someone occupying a piece of land acquires title against the real owner, if the occupant�s possession has been actual, continuous, hostile, visible and distinct for a statutory period.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Affidavit

A sworn statement in writing, usually requiring notarization.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

After-Acquired Property

The property a debtor acquires after the execution of a mortgage or other form of indebtedness that additionally secures the indebtedness. If the mortgage note contains a statement on after-acquired property, it is said to have an "after-acquired" clause.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

After-Tax Cash Flow

The cash flow remaining after deduction of an allowance for taxes attributable to that income.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Agency

Federal or quasi-federal organization involved in mortgage lending, such as Freddie Mac or Ginnie Mae.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Agency Securities

Securities issued by government or quasi-government agencies such as Fannie Mae and Freddie Mac.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Agent

One who legally represents another, called a principal, from whom express or implied authority has been derived.

Term Source: MBA Glossary

Term Type: Actor

Focus Area: #MBAGlossary

Aggregate Analysis

An accounting method a servicer uses in conducting an escrow account analysis by computing the sufficiency of escrow account funds by analyzing the account as a whole.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Aggregate Deductible

A provision whereby the policyholder agrees to self-assume the payment of claims incurred up to a specific amount or limit, with the insurer paying all claims after such limit is attached.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Aggregate Limit Of Liability

A provision which limits the maximum liability of an insurer for losses in a given time period (usually 12 months). Policy limits are usually expressed in maximums per accident (or occurrence), with an aggregate for all losses in any one year.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Aggregate Method

The accounting method wherein a servicer computes the sufficiency of the escrow funds by analyzing the account as a whole.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Agreed Amount

An agreement whereby the coinsurance clause is waived if the insured agrees to carry a specific amount of insurance which represents at least 90% to 100% of total values at risk. Also known as "stated amount coinsurance."

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Agreed Amount Endorsement

An insurance endorsement used with a policy containing a coinsurance clause. It binds the insurance company to an agreement that the amount of insurance carried under the policy is sufficient to meet the requirements of the coinsurance clause in the policy. Addition of the agreed amount endorsement eliminates the risk of the coinsurance penalty.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Agreement For Deed

A contract for the sale of property in which transfer of title to the buyer is contingent on the fulfillment of certain conditions.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Agreement For Sale

A written document in which the purchaser agrees to buy certain real estate or personal property and the seller agrees to sell under stated conditions. Also called a sales contract, binder or earnest money contract.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

Air Rights

The ownership of the right to use, control or occupy the air space over a designated property, without the right to use the land surface.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Air Space

The space above the surface of land that is owned by the landowner and that may be divided and sold or leased to others.

Term Source: MBA Glossary

Term Type: Other

Focus Area: #MBAGlossary

Alienation

The transfer of title to real property from one owner to another.

Term Source: MBA Glossary

Term Type: Process

Focus Area: #MBAGlossary

Alienation Clause

A type of acceleration clause that demands payment of the entire balance upon sale or other transfer of title; also called a "due-on-sale" clause.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

All-Cash Offer

A proposal to purchase property without any contingency to obtain a loan to finance any portion of the purchase price.

Term Source: MBA Glossary

Term Type: Document

Focus Area: #MBAGlossary

 

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