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qualified mortgage

Define: qualified mortgage Definition: A qualified mortgage is a category of loans that have certain, more stable features that help make... read more →

primary mortgage market

Define: primary mortgage market Definition: Primary mortgage market is the entities involved in originating a mortgage loan including mortgage brokers and lenders.

prepaids

Define: prepaids Definition: Prepaid expenses may include property taxes, homeowner's insurance, and mortgage interest that will accrue before the first mortgage payment... read more →

premium pricing

Define: premium pricing Definition: Premium pricing is a credit from a lender for the interest the interest rate chosen. Premium pricing... read more →

net worth

Define: net worth Definition: Net worth is assets minus liabilities.

mortgage lender

Define: mortgage lender Definition: A mortgage lender is a lender providing funds for a mortgage. They can also manage financial information... read more →

mortgage investors

Define: mortgage investors Definition: Mortgage investors are individuals or companies that purchase mortgages after the closing.

mortgage broker

Define: mortgage broker Definition: A mortgage broker is a person that renders origination services and serves as the intermediary between a borrower and... read more →

leverage

Define: leverage Definition: Leverage is the use of borrowed funds to increase yield.

what are lender credits

Define: lender credits Definition: Lender credits a credit that a lender may offer a borrower to help with closing costs. The lender... read more →

junior lien

Define: junior lien Definition: A junior lien is a loan that is subordinate to a primary loan, such as a second or... read more →

interest definition

Define: interest Definition: Interest is the fee charged for the use of money.

high priced mortgage loan

Define: high priced mortgage loan Definition: A high priced mortgage loan is a mortgage loan with an APR 1.5 percent high than... read more →

high interest rates

Define: high interest rates Definition: High interest rates are rates that exceed a specified threshold and require HOEPA disclosures.   

high cost mortgage loan

Define: high cost mortgage loan Definition: A high cost mortgage loan is a mortgage loan where the APR exceeds the Average... read more →

fully indexed rate

Define: fully indexed rate Definition: The fully indexed rate is the interest rate calculated using the index value and margin at... read more →

fraud alert

Define: fraud alert Definition: A fraud alert is a statement in the file of a consumer that notifies all prospective users... read more →

finance charge

Define: finance charge Definition: A finance charge is the total amount of interest and loan charges a borrower would pay... read more →

federal mortgage loan

Define: federal mortgage loan Definition: A federal mortgage loan is a mortgage loan the provides full or partial government reimbursement to approved... read more →

escrow accounts

Define: escrow account Definition: An escrow account (also known as an impound or reserve account) is an account that a mortgage servicer establishes... read more →

entitlement

Define: entitlement Definition:  Entitlement is the amount of money the VA promises to pay back the lender in case the borrower... read more →

eminent domain

Define: eminent domain Definition: An eminent domain is the condemnation of private property for public good.

easement

Define: easement Definition: An easement is a right to the use of/access to land owned by another.

disintermediation

Define: disintermediation Definition: Disintermediation is the withdrawal of funds from savings accounts and into stocks, bonds, and real estate.

discount points

Define: discount points Definition: Discount points are a percentage of the loan amount paid to the lender to buy down the... read more →

delinquent loan

Define: delinquent loan Definition: A delinquent loan happens when a mortgage payment in late.

constructive notice

Define: Constructive notice Definition: A constructive notice is a notice which is recorded in public records.

creditor

Define: creditor Definition: A creditor is any person or business who arranges for the extension, renewal, or continuation of credit.

conveyance

Define: conveyance Definition: Conveyance is the act of transferring ownership interest in real property from one party to another. Additionally, conveyance refers... read more →

consumer credit

Define: consumer credit Definition: Consumer credit is a debt that a person incurs when purchasing a good or service. Consumer credit includes... read more →

borrower capacity

Define: borrower capacity Definition: Borrower capacity is the borrower's ability to make their mortgage payments on time. This depends on income... read more →

chattel mortgage

Define: Chattel Mortgage Definition: A chattel mortgage is a mortgage on a personal property.

average prime offer rate

Define: average prime offer rate Defintion: An average prime offer rate (APOR) is the annual percentage rate that is derived from average... read more →

What is an assumable loan?

Define: What is an assumable mortgage? Definition of assumable mortgage: An assumable mortgage is a mortgage loan that can be taken over... read more →

actual notice

Define: Actual Notice Definition: An actual notice is a notice which is not recorded in public records.
HMDA

What is the HMDA?

What is the HMDA? The Home Mortgage Disclosure Act (HMDA) was passed into U.S. law in 1975 and mandates that... read more →
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