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| The voluntary surrender of property, whether owned or leased. Abandonment does not relieve obligations associated with ownership or lease. |
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| I reduction in amount or intensity. Usually relates to a decrease in taxes or to a decrease in continuing payments such as rent. |
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| Potential borrower's ability to afford the purchase of a home. Consideration of a borrower's ability to repay involves the review of income, assets, liabilities, the type of product, and other factors. The federal "ability to repay rule" sets forth the specific underwriting factors that mortgage professionals must examine when determining a borrowers where his ability to repay |
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| A title that is clear of any liens, judgments, or other encumbrances. |
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| Making current and existing Title Abstract. |
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| A professional in the title industry (sometimes an attorney) who conducts a title search and produces an abstract. |
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| A clause in a mortgage or deed of trust that allows the lender to demand immediate repayment of the balance of the loan under certain conditions, such as a default by the borrower. |
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| A declaration by person signing a document that such signature is a voluntary act, made before a duly-authorized person. |
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| A term used an FHA loans meaning the total cost to close the loan. |
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| Unpreventable distractive occurrence of the natural world |
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| And addition or supplement to a contract. |
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Adjustable rate mortgage
A mortgage in which the interest rate is adjusted periodically based on a pre-determined margin, index, and adjustment interval. |
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| The cost of the property, plus the value of any capital expenditures for improvements to the property and minus any depreciation. |
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| The date on which the interest-rate for any ARM may change. |
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| The period elapsing between adjustment dates for an ARM. The interval can apply to interest for payment adjustments and is typically one, three, or five years. |
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| Adjustments (in appraisal) |
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Definition
| The dollar value that is added to or subtracted from the sale price of a comparable property used to provide an indication of value of the subject property. |
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| A partial disbursement of funds under new usually made as part of a construction loan or a reverse mortgage. |
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| A refusal to great credit as requested; determination in account or an unfavorable change in the terms; or a refusal to increase the amount of credit available to a person who has applied for an increase. |
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| A legal relationship created by law or contract in which the agent performs certain acts on behalf of the principal. |
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| An instance where a fictitious borrower obtains a mortgage loan "secured" by fictitious property. |
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Definition
| Scheduling the periodic payments on a loan so that each installment requires enough principal and interest to ensure complete repayment of the loan by the end of its term. |
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Definition
| The table showing the portion of each payment that will be a fight interesting to principal, and the balance remaining after each payment has been applied. |
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| The length of time required to amortize a mortgage loan, expressed as a number of months. |
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Annual mortgage insurance premium
A fee paid for mortgage insurance on FHA insured loan. Annual MIP is paid on a monthly basis. |
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Definition
Annual percentage rate
A uniform measurement of the cost, including interest and finance costs of closing, expressed as a yearly percentage rate. |
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| Payments made at specified intervals, such as with insurance contracts or certain types of investments. |
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Anti-money laundering program
A program established in an effort to detect and guard against money laundering. These programs involve safeguards including internal procedures and controls, does it need a compliance officers, ongoing employee training, and independent audits. Anti-money-laundering programs are required for certain institutions under the Bank secrecy act (BSA) |
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Definition
The method by which a consumer formerly applies to obtain a mortgage loan. The application form is known as the uniform residential loan application (URLA)
or form 1003. |
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Definition
| A fee charge for processing a mortgage loan application. Application fee maybe a flat fee or a percentage of the loan amount. |
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Definition
And opinion of the fair market value of the property, based on the appraisers knowledge and experience and on and analysis of the property utilizing recent comparable sales in market conditions.
A.k.a. valuation |
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| An estimate of the fair market value of real or personal property. |
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| A person qualified for state licensing procedures to estimate the value of real property. |
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| An increase in the value of property that occurs over time . |
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Definition
| One of several standards used to identify high-cost mortgage loans. If the APR of a loan meets or exceeds the threshold established under the law, the loan qualifies as a high-cost mortgage and must comply with corresponding regulations and requirements. |
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Definition
| Transaction in which the buyers and sellers each act in their own best interest and do not have a relationship to one another. |
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| A local tax levied against the property for a specific purpose, such as for sewage or streetlights. |
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Definition
| Things that a person owns and that can be converted to cash, such as property, investments, savings, etc. |
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Definition
| The transfer of the rights and obligations under a mortgage loan from one person to another. |
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| A provision in a mortgage loan that allows for the transfer of the mortgage from one party to another. |
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Term
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Definition
| A mortgage that can transfer 10 fire, with the buyer taking over the payments on the sellers lenders may require a credit review of the new bar were and payment of the fee for the assumption. If a mortgage contains due-on-sale clause, the mortgage is not assumable buy a new buyer. |
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Term
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Definition
| The fee paid to a lender (usually by the purchaser of real property) when in assumption takes place. |
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