Mortgage Glossary |
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- Adjustable Rate Mortgage (ARM)
- Fixed-Rate Mortgage (FRM)
- Fannie Mae - Federal National Mortgage Association.
- Fair Isaac (FICO) - One of the three main credit bureaus. A FICO score of 600 would be similar to a "C" in public school grading or a "C-" in private school grading.
- FHLB Advances - Funding provided by Federal Home Loan Banks.
- Freddie Mac - Federal Home Loan Mortgage Corporation.
- Government Sponsored Entity (GSE) - Private organizations with government charters whose function is to provide liquidity for the residential loan market. GSEs purchase loans from lenders and assume risk for the asset, thereby protecting the investors in the MBS.
- Home Equity Loan (HEL)
- Homeowners Insurance - Package policy that combines (1) coverage against the insured’s property being destroyed or damaged and (2) coverage for liability exposure of the insured.
- Loan to value (LTV) - Loan Amount / Value of property.
- Combined loan to value (CLVT ). All loans outstanding (i.e. 1st & 2nd) / Value of property.
- No Income No Asset (NINA)
- Manufactured Housing (MH)
- Mortgage Insurance (MI)
- Mortgage Servicing Rights Mortgage Service Rights (MSR) - The capitalized asset that represents the value of the servicing fees to be realized over the life of the loan. (See also yield to maturity)
Pooling — The process of grouping together mortgage loans with similar characteristics.
- Quit Claim Deed (QCD)
Second mortgage Additional loan that is subordinate to the primary mortgage
- Secondary mortgage market — The market where lenders and investors buy and sell existing mortgages and MBS securities.
- Securitization — The process of pooling loans into mortgage-backed securities for sale into the secondary mortgage market.
- Verification of employment (VOE)
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