Terms

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depository institution

Back 1

Any bank or savings Association covered by the Federal Deposit Insurance Act

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non-depository institution

Back 2

Any financial institution that is not regulated or covered by the federal deposit insurance act or the national credit union administration. This type of institution does not offer or maintain savings or checking account for its clients or customers

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Affiliated Business (ABA)

Back 3

A settlement service provider referred by a lender or mortgage banker and in which the entity has at least 1% ownership interest in the referred company

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Servicing

Back 4

The billing, accepting and recording payments, issuing late payment notices, and managing of escrow accounts for a mortgage loan. Per RESPA, servicing is the receiving of any scheduled periodic payment from a borrower according to the terms of a mortgage loan

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Adverse Action

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A denial or relocation of credit or a change of terms of existing credit

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Redlining

Back 6

a form of discrimination in which a borrower is denied or given unfavorable terms for a mortgage loan because of the borrowers location

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Reverse Redlining

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a form of discrimination in which a borrower is targeted and charged more costs in a mainstream consumer is for a mortgage loan because of the borrower's minority status

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fiduciary

Back 8

An authorized party who holds assets for another party when there is no promise of profit

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Loan Application Register (LAR)

Back 9

a record of regular entries listing loan applications and related data throughout the year

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Safe Harbor

Back 10

a Legal term that indicates an action that will insulate or protect the person taking action from harm or legal recourse

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Uniform Standards of Professional Appraisal Practice (USPAP)

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Established by the appraisal foundation USPAP is a document that represents generally accepted standards of appraisal conduct

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Finance Charge

Back 12

the cost of credit expressed in a dollar amount. (any fee that goes in the pocket of the lender or broker)

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Amount Financed

Back 13

loan amount

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Money laundering

Back 14

A process by which illegally gotten (dirty) money is processed (cleaned) through a transaction (such as a real estate deal) to prevent discovery of how the money originally came into the possession of its new owner

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amortize

Back 15

To pay off a mortgage loan gradually with periodic payments of principal and interest

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escrow

Back 16

Account where client monies are held for future pay out of regular expenses such as taxes and insurance premiums

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impound account

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mortgage

Back 17

a lien on property that secure a promise to repay a loan. same as deed in trust

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Co-borrower

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An additional person who is responsible for loan repayment and is listed on the title

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Co-signer

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A person who signs a credit application and agrees to be responsible for the amount borrowed. most conventional loans do not allow cosigners unless the cosigner will also occupy the property

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tangible net benefit

Back 20

the net gain to a borrower when refinancing. (what is their positive outcome)?

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insurable value

Back 21

A property insurance term that signifies the replacement value of a dwelling while excluding the value of land. the insurable value will be less than a property's appraised value

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processor

Back 22

An individual who performs clerical or support duties with regard to a loan transaction. This individual communicates with the loan applicant in order to obtain the necessary information for the underwriting of the loan

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automated underwriter

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Also called desktop underwriting, a type of underwriting that relies on a computer to process a loan application

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URAR uniform residential appraisal report 1004

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residual income

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The amount of money a borrower has left over each month after all major expenses are paid

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seller's concessions

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The amount of money that the seller of a real property is willing to pay to cover a buyer's closing costs

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conveyance

Back 27

Process of transferring ownership interest in real property from one person to another person

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title

Back 28

The right of legal ownership

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deed

Back 29

Legal instrument by which title is demonstrated for real property and used to convey the property at the time of sale. (the instructions on how to clear the Title)

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Encumbrance

Back 30

a lien or defect on title such as a tax lien or outstanding mortgage

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discount point

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A fee paid at closing to reduce the interest rate on a mortgage loan. aka origination point

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Straw Buyer

Back 32

And individual what's up sophie for providing there personal information as if they are the buyer.

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Escrow Account

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Separate account into which the lender put a portion of each monthly mortgage payment.

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straw seller

Back 34

An individual who accepts a fee for providing the information as if they are the seller

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Inflated Appraisal

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An estimate of a property's value that is overstated and therefore not the properties true value

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kickback

Back 36

anything of value given as a referral fee when no bona fide service has been completed

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mortgagee

Back 37

the lender in a mortgage agreement

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mortgagor

Back 38

the borrower in a mortgage agreement

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perpetrator

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a person who is responsible for, or commits, a crime