Term
| Mortage loan provision which permits the lender to demand the entire loan balance be immediately paid in full in the event of default |
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Definition
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Term
| Mortgage loan which allows the lender to periodically adjust the interest rate, up or down, to reflect changes in the market rates. Changes are tied to an index, such as Treasure Bill rate, which measures market reactions to economic pressures on interest rates |
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Definition
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Term
| Mortgage loan provision which allows the lender to demand the entire loan balance due if the property is sold, or the lender can allow the loan to be assumed bu a credit worth buyer and with an interest rate increase. Also known as die-on-sale clause |
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Definition
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Term
| The total annual cost of credit, including interest. loan discount. and all other finance charges for obtaining the loan, expressed as a percent |
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Definition
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Term
| A lump sum payoff of the unpaid balance of a loan, usually at the end of the loan term |
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Definition
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Term
| One for whom title is held under a trust and is entitled to receive income from the trust. |
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Definition
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Term
| A mortgage loan arranement where several parcels of land are pledged as security; used primarily with subdivision financing |
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Definition
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Term
| Mortgage loan in which monthly payments include not only principal and interest but also one-twelfth (12th) of the annual cost for taxes and insurance. |
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Definition
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Term
| The VA's official statement regarding the amount of entitlement available to a particular veteran |
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Definition
| Certificate of Eligibility |
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Term
| An official VA appraisal of a specific property |
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Definition
| Certificate of Reasonable value (CRV) |
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Term
| Issues to the successful bidder at a foreclosure sale of the state provides a statutory period of redemption to the defaulting owner. If the property is not redeemed within the time allowed by law, a sheriff's deed is issued to the new owners |
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Definition
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Term
| Prorated charges by the lender including costs of making the loan and a service charge can be paid by buyer or seller. |
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Definition
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Term
| Property pledged to a lender as security for a loan. |
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Definition
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Term
| An official FHA appraisal of a specific property. Referred to as cost of acquisition. It is used to determine the amount of loan the FHA will insure. |
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Definition
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Term
| A short-tern interium loan to finance the cost of labor and materials necessary to complete construction of a building or other project |
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Definition
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Term
| One that is neither insured nor guaranteed by the goverment |
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Definition
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Term
| A detailed report, detailing the credit history of a prospective borrower, used by a lender to determine credit worthiness |
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Definition
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Term
| A deed given to a lender buy a defaulting borrower who wishes to avid foreclosure proceedings. The lender may or may not accept the deed. |
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Definition
| Deed in lieu of Foreclosing |
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Term
| A mortgage provision which allows the borrow to defeat the mortgage by repaying the loan according to the terms of the note. When the debt is paid, this provision causes the mortgage to become null and void, allowing the borrower to regain full rights of ownership. |
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Definition
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Term
| The percentage of a loan which determines the amount paid to the lender to increase the yield. One discount point is equal to percent of the loan amount |
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Definition
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Term
| The rate of interest the Federal Reserve System charges member banks to borrow money. By controlling the discount rate, the Federal Reserve controls the money available for credit. |
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Definition
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Term
| The amount of the loan guarantee that a veteran is eligible to receive for a VA loan. |
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Definition
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Term
| The buyer's interest in a property from the time he.she enters into a contract until legal title is conveyed at closing. The ultimate right to receive legal title |
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Definition
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Term
| The difference between the value of a property and the out standing loan balances |
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Definition
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Term
| The borrowers right to redeem property at any time after default but before a foreclosure sale, by paying off the debt to the lender's satisfaction. |
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Definition
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Term
| A lease provision which calls for changes in rental payments at specific intervals in the future |
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Definition
| Escalation clause or escalator clause |
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Term
| The borrows written acknowledgement of the loan balance. Execution of this document prevents the borrower from later assuring that the amount owed is less that was stated |
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Definition
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Term
| Mortage loan provision in which the lender waives the right to seek a deficiency judgment against the borrower. the Borrowers personal liability on the note is eliminated, leaving the property itself as the lender's sole security for the debt. |
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Definition
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Term
| An agency which buys loans from lenders, to assure them of continuing flow of funds, Is is owned by its stockholders |
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Definition
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Term
| The federal Agency uunder the U>S> Department of Agriculture that makes credit available to farmers and rural communities with small populations. |
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Definition
| Farmers Home Administration (FMHA) |
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Term
| Federal law which prohibits discrimination against credit applicants on the basis of race, color, religion sex, national origin, marital status, or age |
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Definition
| Federal Equal Credit Opportunity Act |
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Term
| A loan fully insured by the Federal Housing Administration |
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Definition
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Term
| FHA mortgage insurance protects the lender against loss in the event of default. |
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Definition
| FHA mortgagee insurance premium (MIP) |
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Term
| A commitment to insure that a loan will be available for a given buyer |
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Definition
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Term
| One that has the earliest recording date in the most instances. |
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Definition
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Term
| A legal procedure whereby mortgaged property is either sold to a third part or transferred to the lender in order to satisfy the debt |
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Definition
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Term
| A legal procedure whereby the lender is authorized by the loan agreement to sell the mortgaged property upon default and to apply the proceeds to the debt. The sale must be advertised according to state requirements and an auction sale must be held. |
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Definition
| Foreclosure by power of sale |
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Term
| Federal Home Loan Mortgage Corporation (FHLMC) a secondary mortgage market company, similar to RNMA, reporting to its own Board of Directors |
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Definition
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Term
| A long term repayment plan which provides for equal monthly payments of principal and interest. Each months interest is figured on the loan balance at a fixed rate. As the loan matures, the amount of interest decreases each month while the amount paid on the principal increases, also call Amortized Mortgage or Constant Mortgage Plan. |
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Definition
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Term
| Government National Mortgage Association (GNMA was established in order to buy special assistance mortgages carrying below market interst rates. GNMA is a government agency under HUD and deals only in VA and FHA mortgages. See Pass Through Securities. |
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Definition
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Term
| a RESPA required estimate of all settlement charges to assessed against the borrower at the closing. The lender must provide this estimate at the time of loan application or within three business days. |
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Definition
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Term
| A mortgage loan which provides for reduced payments in the first five to ten years in exchange for higher that usual payments which then remain fixed for the balance of the loan. |
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Definition
| Graduated Payment Mortgage (GPM) |
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Term
| In title theory states, this provision makes the mortgage an outright conveyance of title to the lender. |
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Definition
| Granting clause in a mortgage |
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Term
| One who, in food faith and without notice of defect, pays valuable consideration to receive a note before it is due. |
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Definition
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Term
| The borrower's retaining the possession of property pledged as security for the mortgage loan |
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Definition
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Term
| Monthly payments of taxes and insurance collected by the lender to assure payment of these items when they become due. |
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Definition
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Term
| The amount paid or accrued in the return for the use of money |
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Definition
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Term
| Where more than one person signs a note, they are not only liable for their proportionate share, but each is responsible for the entire debt |
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Definition
| Jointly and Severally liable |
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Term
| Legal proceeding where a lender files a lawsuit against a defaulting borrower in order to force the sale of property held as collateral. |
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Definition
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Term
| Any mortgage recorded after the first mortgage. |
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Definition
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Term
| The practice of accepting fees for referrals without providing an actual service |
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Definition
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Term
| Any mortgage recorded after the first mortgage |
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Definition
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Term
| The practice of accepting fees for referrals without proving an actual service |
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Definition
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Term
| Also known as installment contract, installment land contract, or contract for deed. A contract in which the buyer typically makes a small down payment , takes possession, pays the taxes and makes installment payments of principal and interest to the seller until the purchase price is paid in full. The seller retains title until the buyer has paid all installments and other wise performed under the contract. |
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Definition
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Term
| The legal position for adopted by some states, holding that a mortgage only creates a lien rather than conveying title to the lendor |
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Definition
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Term
| Prepaid interest, paid by a borrower in seeking a loan, designed to increase the lender's yield or profit |
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Definition
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Term
| The lenders administrative duties after a loan is placed for instance, mailing out bills, keeping records or loan payments, maintaining, esecrow accounts, making payments for taxes and insurance, and sending out delinquent notices |
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Definition
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Term
| The percentage relationship btween the amount of the loan and the value of the property pledgged as security. For example, a property valued at $10,000 with and $80,000 loan has an 80% loan to value ration ($80,000/%10,0000=80%) |
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Definition
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Term
| A charge for changing the lender's records when a buyer takes over the seller's existing loan |
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Definition
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Term
| Mortgage provision which prevents the loan from being paid off early |
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Definition
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Term
| An instrument which secures a promissory note be either giving the lender a lien against certain property or conveying title to, depending on the state law. |
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Definition
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Term
| In lien theory state, this provision gives the lender a lien in the property pledged as security |
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Definition
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Term
| Rights grated to a trustee by a trust deed |
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Definition
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Term
| Commercial banks which are charted bu the Federal Reserve System |
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Definition
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Term
| An increase in the principal loan balance die to an insufficient amount of monthly payment to cover the accrued interest. The deficiency is added to the loan balance each month and is compounded at the prevailing interest rate, normally occurs in a graduated payment mortgage. |
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Definition
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Term
| W written promise to pay a certain sum of money which may be transferred by endorsement or by delivery |
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Definition
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Term
| Recorded notice which indicates that a lawsuit is pending |
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Definition
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Term
| A mortgage loan which allows the borrower to pay off part or all of the principal without penalty at any time before it becomes due. |
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Definition
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Term
| A financing arrangement where the borrower pledges both real and personal property as security for a loan. |
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Definition
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Term
| A provision in a blanket mortgage which obligates the lender to release each parcel held as security upon payment of a specified sum. |
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Definition
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Term
| The transfer of property to be held by the lender as security for the loan |
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Definition
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Term
| Mortgage provision which enables the lender to foreclose without filing a lawsuit against the defaulting borrower. |
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Definition
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Term
| Mortgage provision which allows the borrower to pay off part of all of the loan without penalty at any time before it comes due. |
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Definition
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Term
| A charge for paying off part or all of a loan before it becomes due. |
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Definition
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Term
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Definition
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Term
| Where individual home buyers go to obtain mortgage loan financing |
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Definition
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Term
| Protect lenders who make conventional loans of more than eight percent of value. In the event of default he insurance covers the lender's losses up to the amount of the insurance |
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Definition
| Private mortgage insurance (PMI) |
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Term
| The borrowers written promise to repay a loan. The note specifies the exact terms and conditions under which the debt is to be paid. |
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Definition
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Term
| A financing arrangement where the purchaser Gives the seller a note secured by a mortgage as part payment of the purchase price |
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Definition
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Term
| A federal law which required lenders to inform potential home buyers about various costs involved in arranging mortgage financing and which attempts to standardize settlement practices. |
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Definition
| Real Estate Settlement Procedures Act (RESPA) |
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Term
| A court-appointed official responsible for managing a property during the period beginning after a default and continuing until foreclosure |
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Definition
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Term
| A mortgage provision which permits a court to appoint a receiver to manage income producing property during a period of default |
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Definition
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Term
| A deed executed by a trustee and delivered to the trustee for the purpose of returning title upon full payment of the loan |
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Definition
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Term
| The unlawful practice of a lender refusing to make a loan solely on the basis of the particular neighborhood involved. Federal Fair Housing Law prohibites the denial of a loan to a qualified borrower purely on the basis of the particular neighberhood |
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Definition
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Term
| Adopted by the federal Reserve to implement the Truth-in-Lending-Law. The regulations provided lenders and those who help arrange credit for borrower specific guidelines to follow in disclosing to borrower their exact cost of credit. Administrated and enforced by the Federal Trade Commission (FTC) |
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Definition
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Term
| A lenders written statement releasing the original borrower from further personal liability on the note. Such a release is usually not considered unless a qualified buyer agrees to accept the personal liabilit |
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Definition
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Term
A financing arrangement which enables a business property owner to sell property with an agreement to lease it back on a long-term, net lease basis from the investor who bought it.
A financing arrangement which enables a business property owner to sell owned property with an agreement to lease it back on a long-term, net lease basis from the investor who bought it. |
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Definition
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Term
| The market where loans are bought from local lenders in order to provide them with a constant supply of cash to originate more loans to homebuyers |
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Definition
| Secondary mortgage market |
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Term
| An instrument which gives a lender a security interest in personal property pledged as collateral for a loan. |
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Definition
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Term
| A security deed which conveys title to the lender until the debt is satisfied. At which time the instrument is cancelled. |
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Definition
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Term
| A financing arrangement in which the borrower receives a below market interest rate by allowing the lender to share in the property's future appreciation in value. |
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Definition
| Shared appreciation mortgage (SAM) |
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Term
| A delinquent borrowers right to redeem property by paying off the debt within a specified period of time after a foreclosure sale. |
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Definition
| Statutory right of redemption |
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Term
| The borrower makes periodic payments of interest only for the term of the loan plus a balloon payment at maturity. |
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Definition
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Term
| A legal procedure which enables the lender to take title from a defaulting borrower without a foreclosure sale. The court grants the borrower a specified amount of time to pay off the loan. If the dept is not paid, title is awarded to the lender |
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Definition
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Term
| A method of taking over a seller's existing loan without assuming and personal liability for the payment. |
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Definition
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Term
| A lease provision which makes the lease inferior in priority to a future mortgage placed against the leased premises. |
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Definition
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Term
| A short term loan allowing the purchaser to purchase a new property based on the strength of the equity from the property the purchaser is selling |
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Definition
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Term
| A lender's commitment to a contractor that permanent financing will be available to pay off a construction loan when the building is completed |
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Definition
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Term
| Saving and Loan Associations and Savings Banks |
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Definition
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Term
| The legal position adopted by some states holding that the mortgage conveys title to the lender. Upon payment of the debt, the mortgage is defeated and full rights of ownership are restated to the borrower |
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Definition
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Term
| A deed used in some stated in lieu of mortgage. Title is held by a trustee on behalf of a lender (beneficiary) until the borrower (trustor) repays the loan. |
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Definition
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Term
| A person or institution that holds title to property for the benefit of another under specific instructions for the use and disposition of that property. |
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Definition
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Term
| One who creates a trust by conveying title to a trustee. |
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Definition
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Term
| Federal Law which requires a lender to disclose the exact cost of credit on certain loans so the borrower can compare costs from the other credit sources before committing to take the loan. |
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Definition
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Term
| A re-printed form on which RESPA requires the lender of certain loans to itemize all settlement charges. |
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Definition
| Uniform Settlement Statement |
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Term
| A legal limit of interest imposed by state laws, does not apple to VA and FHA loans. |
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Definition
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Term
| A mortgage loan where the VA fuarantees a lender against loss at foreclosure up to a certain amount for a qualified veteran. |
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Definition
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Term
| A loan correspondent's practice of holding mortgages in his/her own name until they can be assembled into a package of loans and sold to an investor. The lender usually has a warehouse line of credit at a bank, against which the warehoused mortgages are pledged until they are sold in the secondary mortgage market, and warehouse line of credit is replenished. |
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Definition
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Term
| A junior mortgage which includes the amount of any existing loan(s) plus the balance of the sellers equity after deducting the buyers down payment. The hold of the wraparound continues to make payments on the existing loan(s). |
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Definition
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Term
| Agency responsible for regulating and monitoring the lending practices of federally charted commercial banks. The Federal Reserve controls the supply of money made available for credit by regulating the discount rate charged member banks for the money they borrow. It also influences credit activity by regulating the amount of funds that these banks must keep on reserve. |
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Definition
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Term
| The entity that loans the money to the trustor. Also known as the lendor. |
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Definition
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Term
| A judgment ordered by the court against the borrower when the proceeds from a fore-closer sale are insufficient to satisfy the debt. The defaulting borrower's other assets may be sold to satisfy the judgment. |
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Definition
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