Business Glossary-Term List

Process of obtaining electronic confirmation of employment, bank accounts, liabilities etc.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

The process of handling the assumption of an existing loan by a new party. The servicer and/or investor underwrites and approves the assumption. The servicer retains information on the original borrower and adjusts the loan information to reflect the new borrower.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process in which the regulated institution determines where AVMs in use have been aligned with the minimum protocols for the mandated AVM test criteria, as promulgated by the Dodd-Frank Act.

Term Source: MISMO Life of Loan

Term Type: Process

The process of writing off a full or partial loan balance that is unlikely to be collected. This is an accounting event where the creditor/investor no longer considers the amount owed as a source of profit but rather counts it as a loss.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Process of completing various functions related to performing a closing; including but not limited to gathering additional requirements as specified in the approval, generating and delivering the closing package to the Settlement Agent, and execution of the closing documents by the Borrower(s).

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

The process of generating and executing documents to secure the loan collateral, and disbursing the proceeds.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

The process of collateral reconciliation must be performed on a monthly basis for certain MBS portfolios. This is the reconciliation of the normalized actual principal balance to the scheduled principal balance. If there is a discrepancy, the loan or pool is either overcollateralized, or undercollateralized. An undercollateralization must be resolved immediately. An overcollateralization must be resolved as soon as possible, using unscheduled principal collections.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of using debt collection activities in an attempt to bring a non-performing loan current, which includes establishing a QRPC contact with the borrower(s). QRPC is a uniform standard for communicating with the borrower, co-borrower, or a trusted advisor (collectively referred to as "borrower") about resolution of the mortgage loan delinquency. The servicer must make every attempt to achieve QRPC. The collections process may include short term repayment plans if conditions warrant.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Process in which the Document Custodian validates that loan data matches the collateral received.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

The process of customer relationship management (CRM) between a servicer and borrower(s) including notifications, customer service, collections and statements.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of addressing borrower and associated customer concerns and requests to maintain a positive relationship. Examples: correspondence, required notifications.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Process of establishing formal management of business data assets, involving people, process and technology.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan

Process of establishing formal management of business data assets, and achieving access to the delivery of data across the enterprise to meet data consumption requirements.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan

Process of applying the practices, techniques and tools for achieving access to the delivery of data across the enterprise to meet data consumption requirements.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan

The process of transferring ownership of a property from the borrower to the servicer or investor to prevent foreclosure. If the Deed in Lieu is deemed a taxable event, this process includes reporting to both the Borrower and the IRS.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

The process of removing a loan from the records of a servicer and investor by applying funds received as a result of a liquidation event. Includes ensuring that any appropriate third party notifications are made. In addition, the property may move into REO Administration.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Servicing

Process of delivering the loan to the Investor.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Process of accounting for and obtaining documentation needed for the servicing or sale of the loan.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Process in which a mortgage loan is closed electronically through a secure environment in which closing documents are accessed, presented, and signed digitally.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination

Process in which the Notary Public and the Borrower(s) sign and notarize documents electronically while being in the same physical location.

Term Source: MISMO Life of Loan

Term Type: Process

Focus Area: #MISMOLifeOfLoan, #Origination