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45 Cards in this Set

  • Front
  • Back
Adjustable Rate Mortgage (ARM)
A mortgage instrument in which the interest rate adjusts periodically according to a predetermined index and margin.
Annual Percentage Rate (APR)
Total finance charges- including interest,loan fees,points and other charges-expressed as a percentage of the total amount of the loan. Under the Federal Truth-In-Lending Act(Regulation Z), must be disclosed to the borrower within 3 business days of receipt of a loan application.
The party who receives an onwership interest in a mortgage.
The party who transfers an onwership interest in a mortgage.
A condition of financial insolvency in which a person's liabilities exceed assets and the person is unable to pay current debts. Generally, a person must wait 4 years following discharge to be eligible for a mortgage loan.
Certificate of Eligibility
A document used by the Department of Veteran's Affairs(DVA) to certify a veteran's eligibility for a VA loan.
Conforming Loan
A mortgage loan in compliance with the underwriting criteria and current loan limits of "Fannie Mae" and "Freddie Mac".
Constructive Notice
The recording of a document or an instrument in the public records in the county where a property is located that is designed to give adequate notice to everyone.
Conventional Mortgage
A private mortgage loan neither government insured (FHA) nor government guaranteed (VA). "Frannie Mae and Freddie Mac".
Debt Service
The perodic payment of principal and interest as specified in a promissory note.
Breach or non-performance of a clause in a note or mortgage which, if not cured, could lead to foreclosure.
Discount Point
One percent of the face amount of the loan. Are a one-time charge assessed at closing by the lender to increase the lender's yield to a competitive level.
Documentary Stamps
A tax by the Florida Department of Revenue on deeds of conveyance and mortgage notes.
Fair Isaac & Co. (FICO)
The developer of a credict scoring system used by many credit reporting agencies.
Federal Housing Administration (FHA)
A division of HUD. Its main activity is insuring residential mortgage loans made by private lenders.
FICO Score
A credit score developed by Fair Isaac & Co. Credit. A method of determining the likelihood that credit users will pay their bills. Scorig has become widely accepted by lenders as a reliable means of credit evaluation. A credit score attempts to condense a borrower's credit history into a single number.
First Mortgage
A mortgage having priority over all other voluntary liens against certain property, as evidenced by recording; the earliest recorded mortgage remaining unpaid.
The party who receives a deed. "Buyer"
The party who signs and gives a deed. "Seller"
To give a thing as security without the necessity of relinquishing title or possession.
Intangible Tax
A state tax on certain items of intangible personal property such as mortgages.
Late Charge
A penalty computed on the principal & interest which a borrower is required to pay for failure to pay a regular installment when due.
Lien Theory
A concept followed in several states, including Florida, providing that a mortgage represents a lien on property with the mortgagor(borrower) retaining legal title.
Lis Pendens
A notice recorded in the official records of a county to indicate there is a pending suit affecting property in that jurisdiction; notice of intent to file foreclosure proceedings or to place a lien on the property.
Loan-To-Value Ratio (LTV)
The relationship between the mortgage amount and the appraised market value(or sales price if lower) of the security property, and expressed as a percent.
Metes and Bounds
The most accurate method of land description; "Mmeasurements and "boundaries".
The measure used to express a real estate property tax rate; One-tenth of one percent.
Mortgage Broker
A licensee who brings a borrower and lender together and receives a fee for services performed.
Mortgage Insurance Premiums (MIP)
Fees paid by FHA borrowers to obtain a loan(upfront and annual)
The party in a mortgage transaction who receives and holds the mortgage as security; the lender.
The party in a mortgage transaction who gives the mortgage as security for the debt; "Borrower"
Mortgage Insurance
An insurance policy to protect a lender against loss caused by a borrower's default.
Non-Conforming Loan
A conventional mortgage loan that does not comply with the underwriting criteria established by "Fannie Mae" or "Freddie Mac".
A mortgagee's or current note holder's willingness to permit substitution of a new debtor(buyer) and release a former debtor(seller) from liability on a note.
Origination Fee
The fee for the work involved in the evaluation, preparation, and submission of a proposed mortgage loan from individual borrowers.
Private Mortgage Insurance (PMI)
Insurance provided by a private company protecting conventional mortgage lenders against loss resulting from a mortgagor's (borrower) default.
Real Estate Settlement Procedures Act (RESPA)
A federal law requiring that all closing costs be disclosed on a Good Faith Estimate within 3 business days. Use of a HUD-1 Settlement Statement, requires lenders disclose the likelihood that the servicing rights may be transferred and limits the amount held in escrow to pay for taxes and insurance.
Satisfaction of Mortgage(Notice of Satisfaction)
A recordable instrument provided by the lender evidencing payment in full of the mortgage debt.
Simultaneous issue
The act of a title insurance company providing both an owner's title policy and mortgagee's title policy at the same time.
Tenancy in the Entireties
The ownership of property by a husband and wife providing for the automatic right of surviorship to the surviving spouse.
Truth-In-Lending Act(Regulation Z)
A federal regulation requiring disclosure of the APR, certain finance charges, the 3-day right of recession when refinancing a primary residence, and certain additional disclosures when advertising finance terms.
The flow of funds out of savings institutions into short-term investments in which interest rates may be higher. This shift normally results in a net decrease in the amount of funds available for long-term real estate financing.
Statute of Frauds
A state law requiring certain contracts relating to real property be in writing and signed in order to be legally enforceable.
Subordination of Debt
Voluntary acceptance of a lower mortgage priority than one would otherwise be entitled to have in that property. A subordinated mortgage is inferior to a senior mortgage. "Junior mortgage"
Charging more for the use of money than allowed by law.