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:The process of notifying interested third parties that a new organization is servicing a loan. This includes but is not limited to Mortgage Insurer(s), Hazard Insurer(s), Optional Insurance Vendor(s), Tax Service Company(ies) and Homeowners Associations.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Servicing
Process of obtaining a recommendation from an Automated Underwriting System (AUS), which evaluates loan information against underwriting guidelines to assess the risk of the loan.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of obtaining borrower consent to share with other parties or use tax information received from the Internal Revenue Service.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of securing interim, short-term funds from the Lender's line-of-credit (Warehouse Line) established with a Warehouse Bank to fund the loan closing.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of requesting analysis and testing for regulatory compliance.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process in which the Lender engages a third party to underwrite the loan per Investor Guidelines.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of obtaining a credit report to help assess the ability and likelihood of the Borrower(s) to repay the loan
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of obtaining a Flood Certificate which indicates whether the subject property is in a flood zone.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of requesting analysis and testing for fraud prevention.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of obtaining a commitment from a private mortgage insurance company.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of obtaining a rate quote from a private mortgage insurance company.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of obtaining the Property Valuation, which may consist of an Appraisal, Automated Valuation Model (AVM), and/or Broker Price Opinion (BPO) depending on Investor/Insurer requirements and Lender policies.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination, #Servicing
Process of obtaining detailed information from external resources to verify loan data during the loan origination process.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of engaging external resources to obtain and/or verify loan data during the loan origination process.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of obtaining a Title Insurance Policy to ensure that the necessary and proper ownership rights are established when real estate is conveyed from one party to another. Title is ordered to confirm lien position and protect ownership interest.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
Process of ordering services related to Title Insurance.
Term Source: MISMO Life of Loan
Term Type: Process
Focus Area: #MISMOLifeOfLoan, #Origination
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
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