Need help understanding what all the
different terms mean when it comes to mortgages? Check out our extensive
: A legal relationship in which someone (principal) hires someone
else (agent) to represent them to a third party.
For an adjustable rate mortgage, the time between changes in the
interest rate charged. The most common adjustment intervals are one,
three or five years.
American Land Title Association - A national association of title
insurance companies, abstractors and attorneys specializing in real
property law. The association speaks for the title insurance and
abstracting industry, creates title policy forms and establishes
A substitute documentation process that allows lenders under certain
circumstances to obtain documentation related to an applicant's income,
employment, funds for closing and home loan payment history obtained
directly from the applicant, rather than from his or her employer, bank
or home loan servicer. [TOP]
Literally to "kill off" (root: mort) the outstanding balance
of a loan by making equal payments on a regular schedule (usually
monthly). The payments are structured so that the borrower pays both
interest and principal with each equal payment.
Percentage Rate (APR)
The interest rate which reflects the cost of a mortgage as a yearly
rate. This rate is usually higher than the stated loan rate for the
mortgage, because it takes into account points and other charges.
All of the following: (i) all contractual obligations of the
Correspondent or Originator (including those contractual obligations
contained in the Manual (and/or in any of the other Contract Documents,
in any agreement with any Insurer, or in any of the Mortgage Loan
Documents)) for which the Correspondent or Originator was or is
responsible; (ii) all applicable federal, state and local legal and
regulatory requirements (including statutes, rules, regulations and
ordinances) binding upon the Correspondent or Originator, (iii) all
other applicable requirements and guidelines of each governmental and
quasi-governmental agency, board, commission, instrumentality and other
governmental body or office having jurisdiction; (iv) all other
applicable judicial and administrative judgments, orders, stipulations,
awards, writs and injunctions; (v) the reasonable and customary mortgage
origination and servicing practices of prudent mortgage lending
institutions that make and service mortgage loans of the same type as
the Mortgage Loans in the jurisdictions in which the related Mortgaged
Properties are located; and (vi) to the extent that they require a
standard of care that is not lower than that required by all of the
foregoing, the standards the Correspondent employs and exercises in
originating, servicing and administering mortgage loans for its own
account and/or for the account of an Agency or Private Investor.
A series of steps, usually including the completion of documents, that a
lender requires of those seeking a loan.
The fee charged by the lender to the borrower for applying for a loan.
Payment of this fee does not guarantee that a loan will be approved.
Some lenders may apply the cost of the application fee to certain
closing costs. [TOP]
The determination of property value based on recent sales
information of similar properties.
: A fee charged by the lender for an appraisal.
Written authorization from Cypress Mortgage to the Correspondent
specifying the correspondent lending programs described in the Manual in
which the Correspondent is approved to participate. The most recent
Approval Letter shall take precedence over prior Approval Letters and
may amend, terminate, or otherwise modify prior Approval Letters.
Level of approval to participate in certain lines of business that
is assigned to Correspondent at time of approval.
Adjustable Rate Mortgage - Home loans with interest rates that
change periodically on the basis of movement in a specified index.
: The value placed on property by the Central Appraisal District as
a basis for taxation.
What a person owns, i.e., car, stocks, bonds, mutual funds
of Security Instrument
An assignment of a Security Instrument, notice of transfer or equivalent
instrument in recordable form, sufficient under the laws of the
jurisdiction wherein the related Mortgaged Property is located to
reflect the sale of the Security Instrument, which assignment, notice of
transfer or equivalent instrument shall pertain to an individual
Security Instrument loan and shall contain complete recording
information (including legal descriptions where needed) pertaining to
the related Security Instrument, all in accordance with all Applicable
Permits Correspondents to negotiate their own government or conventional
trades in the securities market and assign those trades to Cypress
These loans may be passed on from a seller of a home to the buyer. The
buyer "assumes" all outstanding payments. Adjustable Rate
A mortgage in which the interest rate is adjusted periodically based on
an index. Also called a variable rate mortgage. [TOP]
or To Assume a Mortgage
The taking over of an existing mortgage. Usually a purchaser will
assume an existing mortgage from the vendor if the existing mortgage has
a good interest rate relative to market rates
: Charges by an independent attorney chosen by the lender to draw
the legal documents, i.e. Note, Deed of Trust, etc.
: An instance in which the final installation payment on a note is
greater than the preceeding payments and pays the note in full.
Behaves like a fixed-rate mortgage for a set number of years
(usually five or seven) and then must be paid off in full in a single
"balloon" payment. Balloon loans are popular with those
expecting to sell or refinance their property within a definite period
Loan that is price protected with a locked in interest rate and
price, and must be delivered within a specified period of time. The
Correspondent is expected to use its "best efforts" to close,
fund and deliver a rate locked loan on or before the last day of the
delivery period. [TOP]
The Person or Persons obligated on the Mortgage Note.
An individual in the business of assisting in arranging funding or
negotiating contracts for a client but who does not loan the money
himself. Brokers usually charge a fee or receive a commission for their
Any day other than (i) a Saturday or Sunday, or (ii) a day on which
banking and savings and loan institutions in the state of North Carolina
are authorized or obligated by law or executive order to be closed.
The cost to compensate a lender for granting a lower interest rate
than the contracted rate
A set percentage amount by which an adjustable rate mortgage may adjust
each adjustment period. For adjustable loans, caps are usually quoted as
two numbers as in 2/6. The first number indicates how much a loan may
adjust at each adjustment period while the second number indicates how
much a loan may adjust over its lifetime. [TOP]
like the 3/1 and 5/1 adjustable which have an initial fixed period
are quoted with 3 numbers as in 3/2/6 which would mean that the
first adjustment may be as much as 3%, subsequent adjustments are
capped at 2% each, and the lifetime cap is 6%.
loans are quoted with a single cap, which is the amount by which the
loan may adjust at its single adjustment date.
: A history of conveyances and encumbrances affecting the title
(ownership) of real property.
Fees paid by the borrower when property is purchased or refinanced.
These typically include a loan origination fee, discount points,
appraisal fee, title search, title insurance, survey, taxes, deed
recording fee, and credit report charges. PMI costs are also excluded
from this figure. Title insurance fees are usually in the range of
25-30cents per $1,000 borrowed. An N/A in the Closing Costs category
means that the information was not available from the lender or, in the
case of multiple-state lenders, differed materially from state to state.
Written notification provided to the Correspondent by Cypress Mortgage
evidencing Cypress Mortgage's commitment to purchase the Mortgage Loans
specified in said notice in accordance with Applicable Requirements and
the provision of the Manual and confirming the respective Rate Locks
Underwritten to the stricter of Fannie Mae/Freddie Mac guidelines
that enable the loans to be freely moved from one agency's pool to the
A form of ownership of real property. The purchaser receives title
to a particular unit and a proportionate interest in certain common
areas. The purchaser may also receive an exclusive right to use certain
areas (for example, parking and storage). A condominium is generally
defined as a separately owned space bounded by the interior surfaces of
the perimeter walls, floors and ceilings. Title to the common areas is
in terms of percentages and refers to the entire project minus the
separately owned units.
A mortgage loan for $252,000 or lower.
A short term loan for funding the cost of construction. The lender
advances funds to the builder as the work progresses.
Correspondent Agreement, the Manual, Commitment Confirmations, Approval
Letters and any and all other documents, instruments and materials
required by Cypress Mortgage in connection within therewith, and any and
all attachments and exhibits to any and all of the foregoing, and any
and all amendments thereof.
A mortgage neither insured by the FHA nor guaranteed by the VA.
: A mortgage securing a loan made by investors without government
underwrting - that is, not FHA insured or VA guaranteed.
The right of a borrower to convert an adjustable or balloon loan into a
fixed loan. The possible options are as follows:Pre-payment penalty
The penalty paid by the mortgagor to discharge a fixed rate mortgage
prior to maturity. The cost is usually the lower of three months
interest or the interest differential.
: Process of transferring ownership of a property from one person to
The lease with respect to a dwelling unit occupied by the Mortgagor
and relating to the stock allocated to the dwelling unit.
A mortgage loan secured by the pledge of stock allocated to a
dwelling unit in a residential cooperative housing corporation and a
collateral assignment of the related Co-op Lease.
A person who formally undertakes to discharge the duties of the
borrower in the event of the borrower's default.
: Charges for Federal Express or a runner.
Borrowers are rated by lenders according to the borrower's
credit-worthiness or risk profile. Credit ratings are expressed as
letter grades such as A-, B, or C+. These ratings are based on various
factors such as a borrower's payment history, foreclosures, bankruptcies
and charge-offs. There is no exact science to rating a borrower's
credit, and different lenders may assign different grades to the same
A report to a prospective lender on the credit standing of a
prospective borrower. Used to help determine creditworthiness.
Information regarding late payments, defaults, or bankruptcies will
: Assessed by the lender for a required credit report from a cerdit
A legal document which affects the transfer of ownership of real
estate from the seller to the buyer. A document which, when properly
excised and delivered, conveys (transfers) title (ownership) of real
The failure to make payments on a loan.
: To make known or public. When dealing in real property, all
disclosures should be made in writing.
: A negotiable fee paid to the lender to secure financing for the
buyer. Discount points are up-front interest charges to reduce the
interest rate over the life, or a portion, of the loan's term. One
discount point equals one percent of the loan amount, i.e. 3 discount
points on a $100,000 loan would be $3,000.
Money paid by a buyer from his own funds, as opposed to that portion of
the purchase price which is financed. Equity
In real estate, the difference between the fair market value of the
property and any mortgages or loans secured by the property
: Money deposited by a buyer to indicate and evidence good faith.
Date of Loan Transfer
The date on which the mortgage payment is first due to the transferee
servicer (Cypress Mortgage) pursuant to the assignment, sale or transfer
of the servicing of the mortgage loan.
loans purchased by Cypress Mortgage on and after the first day of one
month through the last day of the same month, the effective date of the
loan transfer shall be the first day of the following month.
: Anything that affects or limits ownership of real propertry - such
as, mortages, liens, easements, or restrictions of any kind.
The difference between the current market value of a property and the
principal balance of all outstanding loans.
: Charged by the title company to service the transaction and to
escrow (hold and disburse) money and documents. Usually split between
buyer and seller. [TOP]
: The deposit of documents and funds with instructions to a neutral
third party to carry out the provisions of an agreement or contract.
for repairs: the practice of delivering all required money and
documents to a neutral third party to hold until Cypress Mortgage,
the Correspondent and the lender have fulfilled all of the
conditions of the agreement.
and escrow: the escrow agent prepares documents, pays off existing
loans, requests title insurance and divides tax and insurance
payments between Cypress Mortgage and Correspondent.
escrow account: funds included in the monthly real estate loan
payment to accumulate the amounts necessary for the future payment
of property taxes, insurance premiums and other items.
The amounts constituting ground rents, taxes, assessments, water
rates, sewer rates, municipal charges, mortgage insurance premiums and
other payments required to be escrowed by the mortgagor with the
mortgagee pursuant to the terms of any documents included in a Mortgage
Loan File or the program documents.
Right to Sell Listing
: A written agreement between owner and agent giving the agent the
right to sell a property and collect a fee for a set term.
: The price at which a willing seller would sell and a willing buyer
would buy, neither being under abnormal pressure.
Federal National Mortgage Association - A federally chartered
corporation that purchases conventional and government guaranteed real
estate loans. The stock of this semi-public corporation is traded on the
New York Stock Exchange. Popularly known as Fannie Mae.
Federal Housing Administration. Its main activity is to insure
residential real estate loans made by private lenders. It sets standards
for construction and underwriting. FHA neither lends money, nor plans or
A government-backed mortgage loan supported by the US FHA and the
Department of Housing and Urban Development (HUD). A loan offered and
insured by the Federal Housing Administration. It is a fixed rate home
loan for the purchase of an existing single-family dwelling that is a
primary residence not classified as a planned unit development (PUD) or
condominium by the Department of Housing and Urban Development (HUD).
The total dollar amount your loan will cost you. It includes all
interest payments for the life of the loan, any interest paid at
closing, your origination fee and any other charges paid to the lender
and/or broker. Appraisal, credit report and title search fees are not
included in the finance charge calculation.
Delivery Date (AOT)
Final date for delivery of all AOT loans as specified on the
Purchase Date (AOT)
Final date for all AOT loans to be in purchasable form (meet all of
Cypress Mortgage's delivery guidelines for purchase) as specified on the
Delivery Schedule. [TOP]
A home loan with an interest rate that stays the same during the
term of the loan.
A mortgage where the interest rate does not change for the life of
Between the time of application and closing, a borrower may choose
to bet on interest rates decreasing by electing to float. Floating is
essentially choosing not to lock the interest rate. Since it is the
borrower's responsibility to lock his or her rate before (or at)
closing, choosing to float is considered risky and may result in a
higher interest rate. Request information from your lender regarding
A legal procedure in which real estate is sold by the lender to pay
a defaulting borrower's debt . The procedure pursuant to which a
lienholder acquires title to a Mortgaged Property in a foreclosure sale,
or pursuant to any other comparable procedure allowed under Applicable
Requirements when a loan is in default, including, to the extent
applicable, a deed in lieu of foreclosure and, in connection with a
Co-op Loan, foreclosure on the stock allocated to a dwelling unit in a
residential cooperative housing corporation, in which foreclosure is
accomplished by a sale in accordance with the provisions of Article 9 of
the Uniform Commercial Code and the security agreement relating to such
Federal Home Loan Mortgage Corporation - A private corporation
authorized by federal law to provide secondary mortgage market support
for conventional real estate loans. Popularly known as Freddie Mac.
With respect to each mortgage loan, the date when mortgage loan proceeds
are disbursed to, or on behalf of, the mortgagor, so that the interest
accrual begins on the mortgage loan.
Money received on a regular basis as a gift, not compensation for
employment or distributions under the terms of a trust or estate.
The Government National Mortgage Association, or any successor
A term indicating that a transaction has met all relevant
guidelines, such as deadlines for delivery of the loan and the quality
of the collateral.
An estimate of charges which a borrower is likely to incur in
connection with a loan closing. [TOP]
The total amount the borrower earns per month, not counting any
taxes or expenses. Often used in calculations to determine whether a
borrower qualifies for a particular loan.
A form of insurance in which the insurance company protects the
insured from certain losses, such as fire, vandalism, storms and certain
other natural causes.
A maximum mortgage available under a given program.
The total monthly mortgage payment including property taxes,
insurance and mortgage insurance expressed as a percentage of monthly
gross income. The ratio of the monthly housing payment to total
gross monthly income. Also called Payment-to-Income Ratio or Front-End
Department of Housing and Urban Development-It is responsible for
the implementation and administration of government housing and urban
development programs. The broad range of programs includes community
planning and development, housing production and home loans (FHA), equal
opportunity in housing, research and technology. [TOP]
All the buildings, structures and improvements of every kind and
description now or hereafter erected or placed on the real property that
is part of the Mortgaged Property, and all facilities, fixtures,
machinery, apparatus, appliances, installations and equipment, including
all building materials to be incorporated into such buildings, all
electrical equipment necessary for the operation of such buildings, and
heating, air conditioning and plumbing equipment now or hereafter
attached to, located in or used in connection with those buildings,
structures and other improvements. [TOP]
A published interest rate not controlled by the lender to which the
interest rate on an Adjustable Rate Mortgage (ARM) is tied. The index
and the interest rate linked to it may increase or decrease.Liabilities.
What a person owes, i.e., credit card, loans, mortgages.
index values include an index name plus a margin as in
"1TYB+2.75" which means a 2.75% margin above the One Year
Treasury Bill Yield.
Year Treasury Bill Yield
Year Treasury Note Yield
Year Treasury Note Yield
Year Treasury Bond Yield
Year Treasury Bond Yield
Month Treasury Bill Yield
Month CD Rate
District Cost-of-Funds Rate
Escrow Account Disclosure Statement
The statement required by Applicable Requirements to be submitted to a
Mortgagor after a servicer has established an escrow account in
connection with a Mortgagor Loan to such Mortgagor.
Any primary mortgage insurer or provider of hazard insurance, flood
insurance, Title or other insurance with respect to a loan or mortgaged
The percentage of an amount of money which is paid for its use for a
A 1- to 4-unit property not occupied by the borrower. This definition is
used whether or not the property produces revenue. Loans to corporations
and general partnerships are considered secured by investment property.
Also known as non-owner-occupied property.
A loan above $252,000. These limits are set by the Federal National
Mortgage Association and the Federal Home Loan Mortgage Corporation.
Because jumbo loans cannot be funded by these two agencies, they usually
carry a higher interest rate.
Whenever any representation, warranty or other statement contained
in this Agreement, the Manual or any other Contract Document is
qualified by reference to "the Correspondent's knowledge",
" known to the Correspondent," or a similar phrase, such
qualified reference shall be deemed to include knowledge of facts or
conditions of which the Correspondent (including any of its directors,
officers, agents, and employees) either is actually aware or should have
been aware under the circumstances with the exercise of reasonable care,
due diligence, and competence in discharging the Correspondent's duties
under the Contract Documents. All matters of public record and all
matters contained or disclosed in any Mortgage Loan Document shall be
deemed to be known by the Correspondent. Any representation or warranty
that is inaccurate or incomplete in any material respect is presumed to
be made with the knowledge of the Correspondent, unless the
Correspondent demonstrates otherwise. For purposes of this definition,
"due diligence" means that care which the Correspondent would
exercise in obtaining and verifying information for a loan in which the
Correspondent would be entirely dependent on the property securing the
loan and on the borrower's creditworthiness as security to protect the
Correspondent's investment. For purposes of indemnification or
repurchase obligations under the Contract Documents, any limitation or
qualification as to knowledge set forth in any representation or
warranty shall not prevent a recovery by Cypress Mortgage for breach of
such representation or warranty.
The Last Update column on Mortgage Rate Watch tables tells you when
the information was provided by the lender to Mortgage Rate Watch.
Mortgage Rate Watch always places new listings at the top of each table
so that you, the borrower, may have immediate access to the most timely
information. Times provided are all Pacific Standard Time, or, are
reflective of the area where the lenders are located.
The bank, mortgage company, or mortgage broker offering the loan. Many
institutions only "originate" loans and then resell the
obligation to third parties.
of Loan Cap
The maximum interest rate that can be charged during the life of the
loan. Also called Lifetime Cap. This value is often expressed as an
increment above the initial loan rate. For example, an adjustable rate
loan with an initial rate of 7.25% and a 6% lifetime cap will never
adjust above a rate of 13.25% (7.25+6.0).
The bank, mortgage company, or mortgage broker offering the loan.
Many institutions only "originate" loans and then resell the
obligation to third parties.
The amount, in percentage points, by which the highest possible rate in
effect during the term of an adjustable rate loan may exceed the initial
: Normally 1% of the loan amount, and charged by the lender to the
The relationship between the amount of the mortgage loan and the
appraised value of the property expressed as a percentage. A LTV ratio
of 90 means that a borrower is borrowing 90% of the value of the
property and paying 10% as a down payment. For purchases, the value of
the property is assumed to be the purchase price, for refinances the
value is determined by an appraisal.
The period, expressed in days, during which a lender will guarantee
a rate. Some lenders will lock rates at the time of application while
others will allow the borrower to lock the rate after the application is
taken. Request information from your lender regarding lock procedures.
The act of committing to a mortgage rate. This action, taken by a
borrower some time between the application and the closing dates, is
sometimes accompanied by a payment by the borrower to the lender.
Opposite of float
A unit of manufactured housing, including all accessories thereto,
securing the indebtedness of the Mortgagor under the related Mortgage
Note evidencing a Manufactured Home Loan. [TOP]
A loan that is secured by a mortgage or deed of trust on real estate
on which the related Manufactured Home is considered or classified as
part of the real estate under the laws of the jurisdiction in which it
The amount a lender adds to the quoted index rate for an adjustable rate
loan to determine the new interest rate.
A lien created by statute for the purpose of securing priority of
payment for the price or value of work performed and materials furnished
in construction or repair of improvements to land. The lien attaches to
the land as well as the improvements.
of Delivery (Lines of Business)
Different methods Correspondent may use to deliver purchasable loans to
Cypress Mortgage, which include the standard loan by loan or negotiated
transactions such as AOT, Co-Issue/Quarterly transfer, mandatory
delivery, six month forward stand-by commitments and Bulk delivery.
This refers to the minimum credit rating a borrower must have in
order to qualify for the listed loan. [TOP]
Home (also referred to as manufactured home)
A unit of manufactured housing, including all accessions thereto,
securing the indebtedness of the mortgagor under the related note
evidencing a manufactured home.
Total principal, interest, taxes, and insurance paid by the borrower
on a monthly basis. Used with gross income to determine affordability.
: A legal document that provides security for repayment of a
: Required by lender to ensure that lender has a valid lien. It does
not protect the buyer. Also required for second mortgages.
Any deed of trust, security deed, mortgage or any other instrument
that constitutes a first-lien on the improved mortgaged property
securing payment by a mortgagor of a mortgage note.
(Government or Private) Insures a home loan lender against loss
caused by a borrower's default. This insurance may cover a percentage of
or virtually the whole loan amount depending on the type of mortgage
insurance that's obtained.
The Mortgage, Mortgage Note, Assignments of Mortgage, any guarantees, if
applicable, together with any and all other documents, instruments and
materials issued, executed and/or delivered in connection with the loan.
The contents of the file delivered to Cypress Mortgage by
Correspondent for each mortgage loan sold (or to be sold by
Correspondent to Cypress Mortgage.) The Mortgage Loan File will contain
the documents required by the Manual and any additional documents
required to be added to the Mortgage Loan File pursuant to any other
Contract Document, an Applicable Requirement, or upon Cypress Mortgage's
reasonable request, any alternative document.
The note, deed of trust note, security deed note or other form of
promissory note showing evidence of indebtedness of a Mortgagor under a
mortgage loan, and executed by the Mortgagor and secured by a Security
Any real property that is encumbered by a Security Instrument,
including all applicable Improvements, additions, alterations and
replacements to such Improvements. The property may consist of a 1- to
4-family residence and, to the extent the context will permit or
require, a Manufactured Home or a home in a residential cooperative
Gross income less federal income tax.
Assets minus liabilities
A mortgage loan with an amount that exceeds Fannie Mae/Freddie Mac
loan limits. [TOP]
The fee imposed by a lender to cover certain processing expenses in
connection with making a loan. Usually a percentage of the amount
loaned. Please refer to the definition to see how this fee is reflected
on the Mortgage Rate Watch tables.
With respect to any Mortgage Loan, any Person that: (i) took the
Mortgagor's Mortgage Loan Application, (ii) processed the Mortgagor's
Mortgage Loan Application; (iii) closed (or assisted in the closing of)
the Mortgage Loan; and/or (iv) funded the Mortgage Loan.
: Insures the buyer against loss due to any defect in the title not
excepted to or excluded from the policy.
An individual, corporation, financial institution, partnership,
joint venture, trust or unincorporated organization or a federal, state,
city, municipal or foreign government or an agency or political
The Mortgage Rate Watch Tables usually list the telephone numbers or
e-mail address to directly access the loan department of each lender.
Prepaid interest paid by the borrower to the lender at closing. A
point is equal to 1 percent of the loan amount (e.g. 1.5 points on a
$100,000 mortgage would cost the borrower $1,500). Generally, by paying
more points at closing, the borrower reduces the interest rate of his
loan and thus future monthly payments.
Note: Lenders who charge Origination Fees as a percentage of loan
amount are requested to reflect these fees in the Points column of
the Mortgage Rate Watch tables.
Expenses such as taxes, insurance and assessments which are paid in
advance of their due date and which must be paid by the buyer on a
prorated basis at closing.
The ability to pay off the remaining balance of a loan.
Lenders who impose prepayment penalties will charge borrowers a fee
if they wish to repay part or all of their loan in advance of the
The amount of debt, not counting interest, left on a loan.
Mortgage Insurance (PMI)
Paid by a borrower to protect the lender in case of default. PMI is
typically charged to the borrower when the Loan-to-Value Ratio is
greater than 80%.
Plus Options (Special Enhancements)
Options such as government lending, delegated underwriting and Third
Party origination are offered to complement the standard Correspondent
Lending Policy. Approval is required to participate in each Program Plus
Planned Unit Development-A real estate project in which each owner has
title to a residential lot and building unit and to nonexclusive
easement over common areas of the project. The owner may have exclusive
easements over some portion of the common area.
Files that meet all of the underwriting and legal criteria, satisfy the
original terms of the Correspondent and contain all of the required loan
documentation, including the original note that has been properly
endorsed to Cypress Mortgage.
The payment by Cypress Mortgage of the Purchase Price of a loan on the
Purchase Date to Correspondent or Correspondent's designee or any other
party legally entitled to receive the purchase price (including
Correspondent's warehouse lender) in accordance with the terms of the
Manual and the other Contract Documents.
A written agreement between a buyer and seller of real property,
setting forth the price and terms of sale. [TOP]
With respect to any loan, the date of the Purchase of said loan by
The dollar amount agreed to be paid by Cypress Mortgage to the
Correspondent for a loan in accordance with the pricing terms set forth
in the Manual, including Servicing Release Premium applicable thereto.
The ratio of the borrower's fixed monthly expenses to his gross monthly
income. Ratios are expressed as two numbers like 28/36 where 28 would be
the Front-End Ratio and 36 would be the Back-End Ratio.
Front-End Ratio is the percentage of a borrower's gross monthly
income (before income taxes) that would cover the cost of PITI
(Mortgage Principal Payment + Mortgage Interest Payment + Property
Taxes + Homeowners Insurance). In the case of a 28% Front-End Ratio
a borrower could qualify if the proposed monthly PITI payments were
28% or less than the borrower's gross monthly income.
Back-End Ratio is the percentage of a borrower's gross monthly
income that would cover the cost of PITI plus any other monthly debt
payments like car or personal loans and credit card debt.
note that qualifying ratios are only a rough guideline in
determining a potential borrower's credit-worthiness. Many factors
such as excellent or poor credit history, amount of down payment,
and size of loan will influence the decision to approve or
disapprove a particular loan. Mortgage Rate Watch urges all
borrowers to discuss their particular situation with a qualified
lender regardless of the outcome of any self-qualification exercise.
The act of the Correspondent's obtaining a confirmed interest rate and
loan purchase price from Cypress Mortgage for a loan in accordance with
the procedures set forth in the Manual.
: Charged by the County Clerk to record documents in the public
records. Charges are based on the number of pages recorded.
The act or process of registering a loan with Cypress Mortgage in
accordance with the procedures set forth in the Manual. A loan that has
been Registered may be in a float status or a Rate-Locked status, as
provided in the Manual. [TOP]
An amount equal to: (i) the greater of the Purchase Price for the loan
paid by Cypress Mortgage (including any amount in excess of par paid by
Cypress Mortgage) or the outstanding principal balance of the Mortgage
Note as of the Purchase Date; less (ii) the aggregate amount of
reductions of the principal balance of the Mortgage Note received by
Cypress Mortgage as of the date of repurchase; plus (iii) any and all
interest payable on the outstanding principal balance of the Mortgage
Note as of the date of repurchase; plus (iv) any and all costs and
expenses, including any advances for escrows accounts, costs of
foreclosure, reasonable attorneys' fees, and costs (if any) associated
with purchasing the loan out of a pool of loans, incurred by Cypress
Mortgage in connection with the loan, the Mortgaged Property, and/or the
Real Estate Settlement Procedures Act - A federal law that requires
lenders to provide home loan borrowers with an estimate of settlement
costs as well as the HUD booklet on settlement costs within three days
of receiving an application.
Scheduled payments on a loan have been made regularly for one year
Any deed of trust, security deed, mortgage or any other instrument
that constitutes a lien on the Mortgaged Property securing payment by a
Mortgagor of a Mortgage Note and any modifications thereto, including,
to the extent that the context shall permit or require, the security
agreement creating a security interest in favor to Correspondent in the
stock allocated to a dwelling unit in a residential cooperative housing
corporation and pledged to secure a Co-op Loan, and the related Co-op
: See TREC Disclosure Form "If the Broker Represents the
: The septic system must have a certificate by the city or county
Health Department. [TOP]
The amount to be paid to the Correspondent for the Servicing Rights
associated with a loan as specified by Cypress Mortgage in writing.
With respect to a loan, the right to administer, collect the payments
for the reduction of principal and application of interest, pay taxes
and insurance, remit collected payments, provide foreclosure services,
provide full escrow administration, and the right to receive any
applicable servicing fee, float benefit and ancillary income arising
from or connected to the loan. Except as may be otherwise provided in
the Manual, Servicing Rights shall also include the right to maintain
any related custodial or escrow accounts.
See Closing Costs.
A secured debt that is inferior to the secured interest of another
in the same property. Subordination may apply not only to security
instruments, but also to leases, real estate rights and any other types
of debt instruments. [TOP]
: Survey of property required by lender; shows lot size, easements,
any encroachments, locations of improvements, etc.
: Charged by taxing authorities to present certification showing
that the current year's taxes were paid.
A claim against real estate for the amount of its unpaid taxes.
: Required by the lender for collection and disbursement of tax
escrow by a servicing company. Termite Inspection: Required by the
lender to show property free and clear of active termites.
The period of time for which a mortgage contract is written at a
particular interest rate [TOP]
Is Of The Essence
: Demands punctual performance in a binding contract.
A contract by which the insurer agrees to pay the insured a specific
amount for any loss caused by specified defects of title to real estate.
The insured must have an insurable interest, whether as purchaser,
mortgagee or otherwise.
: Insurance policy on the ownership of real property against defects
The evidence of the right to or ownership in property. In the case
of real estate, the documentary evidence of ownership is the title deed
that specifies to whom the subject property is vested. Title may be
acquired through purchase, inheritance, devise, gift or foreclosure of a
real estate loan. [TOP]
An examination of city, town, or county records to determine the
legal ownership of real estate.
Debt Service Ratio
The total monthly mortgage payment including property taxes,
insurance, mortgage insurance, and all other debts expressed as a
percentage of gross monthly income.
May Not Convert This Loan.
May Convert But Must Requalify.
Conversion Fee Applies
May Convert And Is Automatically Qualified.
Conversion Fee Applies
: Charge by a lender to underwrite the loan.
The Veteran's Administration.
: Veteran's Administration fee for originating a VA loan.
A government-backed mortgage loan supported by the US Veterans
See Adjustable Rate Mortgage.
or Alternate Real Estate Financing is designed to help consumers
with less than perfect credit to obtain home loans, or, refinance an
refer to perfect credit as "A paper." Alternate Real
Estate lending is referred to as "sub prime paper." This
means that the borrower has less than perfect credit. This is caused
by late payments and other marks against your credit.
prime paper is rated similar to school grades as "A-,"
"B +," " B," "B-" "C+,"
"C," "C-," etc. So, regardless of your credit
situation, you may still be able to secure a home loan, or, to
refinance an existing loan.
the major credit bureaus use a credit scoring system based on a
computer program where you lose points for high-credit usage, late
payments, bankruptcies, repossessions, high inquiries on your credit
: Charged by the lender to hold the loan locally before selling it
in the secondary mortgage to an investor. [TOP]
Any Person that lends moneys to the Correspondent for the funding of
loans, whose security interest in a loan has been disclosed to Cypress
Mortgage by means of a properly executed Bailee Agreement or a bailee
letter delivered to Cypress Mortgage thereunder.
: Act of city authorities specifying type of use for which property
may be used.