Cary Valentine Seminars (CVS Training & Development) Mortgage Finance Glossary

Disclaimer: This glossary is provided for the reference use of CVS Training & Development enrolled students and should not be construed as a valid source for competent legal advice. Note that the vocational use of terms may differ from mainstream interpretation of the same terms.

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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

-A-

ADD-BACKS

Mortgage industry jargon for certain itemized deductions that can be added back into the borrower's qualifying income when a long-form income tax return is being underwritten to establish income capacity.

ADJUSTABLE RATE MORTGAGE (ARM)
Is a mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Also sometimes known as the re negotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.

AMORTIZATION
The periodic principal pay down of a loan.

ANNUAL PERCENTAGE RATE (APR)
Is a interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account point and other credit cost. the APR allows home buyers to compare different types of mortgages based on the annual cost for each loan.

ASSUMPTION
Taking over a loan and becoming personally liable for the repayment.

AUTOMATED UNDERWRITING (AU)

Refers to computer analysis systems that use the data inputted to arrive at a loan decision and/or give instructions how to process the loan for success. All data inputted must be supported by applicable hard documents. The most common automated underwriting systems used are Desktop Underwriter (Fannie Mae) and Loan Prospector (Freddie Mac).

AWARD LETTER

Refers to a Social Security Disability notice sent to a beneficiary stating that they will receive a monthly distribution from the Social Security Trust.

-B-

BACK-END RATIO

This refers the ratio of total proposed payments including the mortgage and all other monthly payments against the current monthly gross income.

BALLOON (payment) MORTGAGE
Usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a time specified in the contract.

BANKRUPTCY
A provision of Federal Law whereby a debtor surrenders his assets to the Bankruptcy Court and is relieved of the future obligation to repay his unsecured debts. Secured creditors, those holding deeds of trust or judgment liens, continue to be secured by the property but they may not take other action to collect from the debtor. There are different types of bankruptcy chapters, the above is very general.

BENEFICIARY
A person named to receive a benefit from a trust. A contingent beneficiary has conditions attached to his rights, usually someone else must die first.

BROKER
An individual in the business of assisting in arranging funding or negotiating contracts for a client buy who does not loan the money himself.

BUY-DOWN (A.K.A., Temporary Buydown)
When the lender and/or the home builder subsidized the mortgage by lowering the interest rate during the first few years of the loan. While the payments are initially low, they will increase when the subsidy expires.

-C-

CAPACITY

Makes reference to a tolerable level of certainty in a particular borrowers' income, asset and credit qualifications that are acceptable to the risk of an investor and/or lender's loan program's.

CAPS (interest)
Consumer safeguards which limit the amount the interest rate on an adjustable rate mortgage may change per year and/or the life of the loan. (floor or ceiling)

CAPS (payment)
Consumer safeguards which limit the amount of monthly payments on an adjustable rate mortgage the lender may change.

CAVEAT EMPTOR
Buyer beware. The buyer must inspect the property and satisfy himself it is adequate for his needs. The seller is under no obligation to disclose defects but may not actively conceal a known defect or lie if asked.

CERTIFICATE OF ELIGIBILITY
The document given to qualified veterans which entitles them to VA guaranteed loans for homes, business, and mobile homes. Certificates of eligibility may be obtained by sending DD-214 (Separation Paper) to the local VA office with VA form 1880 (request for Certificate of Eligibility)

CERTIFICATE OF REASONABLE VALUE (CRV)
An appraisal issued by the Veterans Administration showing the property's current market value

CERTIFICATE OF TITLE
A written opinion by an attorney or title company setting forth the status of title to the property as shown on the public records. The certificate does not certify as to matters not of record and affords no protection unless the author was negligent.

CLOSINGS The meeting between the buyer, seller and lender or their agents where the property and funds legally change hands. Also called settlement. Closing costs usually include an origination fee, discount points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge and other costs assessed at settlement. The cost of closing usually are about 3 percent to 6 percent of the mortgage amount. commitment an agreement, often in writing, between a lender and a borrower to loan money at a future date subject to the completion of paperwork or compliance with stated conditions.

COLLATERAL
Property pledged to secure a loan.

COMMITMENT
A contract issued by a lender to make a loan on specific terms or conditions to a borrower or builder.

CONSTRUCTION LOAN (interim loan):
A loan to provide the funds necessary to pay for the construction of buildings or homes. These are usually designed to provide periodic disbursements to the builder as he progresses. contract sale or deed: A contract between purchaser and a seller of real estate to convey title after certain conditions have been met. It is a form of installment sale.

CONDOMINIUM
A system of individual fee simple ownership of portions (units) in a multi-unit structure, combined with joint ownership of common areas. Each individual may sell or encumber his own unit.

COMPENSATING FACTORS

Refers to certain attributes in a borrower's loan application that are especially strong and as such, may compensate for a guideline deficit in another part of the credit, capacity or collateral sections of the borrower's file.

REGULATORY COMPLIANCE (A.K.A., Compliance)

This is a quality control process where lenders review individual or pools of loans for compliance with state and federal laws specific to mortgage lending. Regulatory compliance deficiencies often lead to the ruin of a mortgage retail and/or wholesale entity so lenders take this responsibility quite seriously.

CONSTRUCTION LOAN
A short term interim loan for financing the cost of construction. The lender advance funds to the builder at periodic intervals as the work progresses. .

COVENANT
A written agreement or restriction on the use of land or promising certain acts. Homeowner Associations often enforce restrictive covenants governing architectural controls and maintenance responsibilities. However, land could be subject to restrictive covenants even if there is no homeowner's association.

COMBINED LOAN TO VALUE (CLTV)

CONVENTIONAL LOAN
A mortgage not insured by FHA or guaranteed by the VA or deferred interest: When a mortgage is written with a monthly payment that is less than required to satisfy the note rate, the unpaid interest is deferred by adding it to the loan balance.

CREDIT REPORT
A report documenting the credit history and current status of a borrower's credit standing.

-D-

DEBT-TO-INCOME RATIO (DTI)
The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her net effective income (FHA/VA loans) or gross monthly income (conventional loans).

DEED

The written document conveying real property. Once recorded at the Courthouse, the original piece of paper is not needed to convey title in the future.

DEED OF TRUST
A voluntary lien to secure a debt deeding the property to Trustees who foreclose, sell the property at public auction, in the event of default on the Note the Deed of Trust secures. In many states, this document is used in place of a mortgage to secure the payment of a note.

DEFAULT
Failure to meet legal obligations in a contract, specifically, failure to make the monthly payments on a mortgage.

DELINQUENCY
Failure to make payments on time. this can lead to foreclosure.

DELIVERY
The final, unconditional and absolute transfer of a deed to the Grantee so that the Grantor may not revoke it. A Deed, signed but held by the Grantor, does not pass title.

DESKTOP UNDERWRITER (DU)
Desktop Underwriter is the name of the internet-based, automated underwriting system for Fannie Mae.

DEPARTMENT OF VETERANS AFFAIRS An independent agency of the federal government which guarantees long-term, low-or no-down payment mortgages to eligible veterans.

DOWN PAYMENT
Money paid to make up the difference between the purchase price and the mortgage amount. Down payments usually are 10 percent to 20 percent of the sales price on conventional.

DOWNSIZE

Generally, applies to a homebuyer who is purchasing a less expensive home than their current.

DUE-ON-SALES CLAUSE

A provision in a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home.

-E-

EARNEST MONEY
Money given by a buyer to a seller as part of the purchase price to bind a transaction or assure payment.

EASEMENT

The right to use the land of another for a specific limited purpose.

EMINENT DOMAIN
The power of the state to take private property for public use upon payment of just compensation.

ENCROACHMENT
The physical intrusion of a structure or improvement on the land of another. Examples include a fence or driveway over the property line.

ENTITLEMENT
The VA home loan benefit is called entitlement. Entitlement for a VA guaranteed home loan. This is also known as eligibility.

EQUAL CREDIT OPPORTUNITY ACT (ECOA)
Is a federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs

EQUITY
The value an owner has in real estate over and above the obligation against the property.

EQUITY SHARING

A form of joint ownership between an owner/occupant and an owner/investor. The investor takes depreciation deductions for his share of the ownership. The occupant receives a portion of the tax write-offs for interest and taxes and a part of his monthly payment is treated as rent. The co-owners divide the profit upon sale of the property.

ESCROW
Funds that are set aside and held in trust, usually for payment of taxes and insurance on real property. Also earnest deposits held pending loan closing.

-F-

FARMERS HOME ADMINISTRATION (FMHA)

Provides financing to farmers and other qualified borrowers who are unable to obtain loans elsewhere.

FEDERAL HOME LOAN BANK BOARD (FHLBB)
A regulatory and supervisory agency for federally chartered savings institutions.

FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC)
The Federal Home Loan Mortgage Corporation provides a secondary market for saving and loans by purchasing their conventional loans. Also known as "Freddie Mac."

FEDERAL HOUSING ADMINISTRATION (FHA)
A division of the Department of Housing and Urban Development. Its main activity is the insuring of residential mortgage loans made by private lenders. FHA also sets standards for underwriting mortgages.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)

Secondary mortgage institution which is the largest single holder of home mortgages in the United States. FNMA buys VA, FHA, and conventional mortgages from primary lenders. Also known as "Fannie Mae."

FHA LOAN
A loan insured by the Federal Housing Administration open to all qualified home purchasers. While there are limits to the size of FHA loans.

FHA MORTGAGE INSURANCE
Requires a small fee (up to 3.8 percent of the loan amount) paid at closing or a portion of this fee added to each monthly payment of an FHA loan to insure the loan with FHA. On a 9.5 percent $75,000 30-year fixed rate FHA loan, this fee would amount to either $2,850 at closing or an extra $31 a month for the life of the loan. In addition, FHA mortgage insurance requires an annual fee of 0.5 percent of the current loan amount, paid in monthly installments. The lower the down payment, the more years the fee must be paid.

FIRM COMMITMENT
A promise by FHA to insure a mortgage loam for a specified property and borrower. A promise from a lender to make a mortgage loan.

FIXED RATE MORTGAGE
The mortgage interest rate will remain the same on these mortgages throughout the term of the mortgage for the original borrower.

FORECLOSURE
A legal process by which the lender or the seller forces a sale of a mortgaged property because the borrower has not met the terms of the mortgage. Also known as a repossession of property.

-G-

GIFT FUNDS

In the secondary mortgage market context, 'gift funds' refers to a documented gift from a blood relative with no obligation to repay at a later date. Most common in FHA loans.

GOOD FAITH ESTIMATE (GFE)

GOOD FUNDS

Mortgage industry jargon for liquid assets that are documented to the satisfaction of the secondary mortgage market underwriter. "Good funds" means that the liquid assets being offered to demonstrate asset capacity are legitimate in their origin.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) also known as Ginnie Mae, provides sources of funds for residential mortgage, insured or guaranteed by FHA or VA.

GOVERNMENT SPONSORED ENTERPRISE (GSE)

GRADUATED PAYMENT MORTGAGE (GPM)
A type of flexible-payment mortgage where the payments increase for a specified period of time and then level off. This type of mortgage has negative amortization built into it.

GUARANTY

A promise by one party to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract.

-H-

HAZARD INSURANCE
A form of insurance in which the insurance company protects the insured from specified losses, such as fire, windstorm and the like.

HOUSING EXPENSES-TO-INCOME RATIO (Front-End Ratio)
The ratio, expressed as a percentage, which results when a borrower's housing expenses are divided by his/her net effective income (FHA/VA loans) or gross monthly income (conventional loans).

HUD-1 SETTLEMENT STATEMENT (A.K.A., Standard Settlement Statement or HUD-1A)

A form document created by the Department of Housing and Urban Development to disclose itemized settlement costs for the seller and buyer. 

-I-

IMPOUND
That portion of a borrower's monthly payments held by the lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also known as reserves.

INCOME STABILITY

Refers to a pattern of consistent income over a period of time. The desired minimum term of income stability to have been demonstrated is normally, two years.

INDEX
A published interest rate against which lenders measure the difference between the current interest rate on an adjustable rate mortgage and that earned by other investments (such as one- three-, and five-year U.S. Treasury security yields, the monthly average interest rate on loans closed by savings and loan institutions, and the monthly average costs-of-funds incurred by savings and loans), which is then used to adjust the interest rate on an adjustable mortgage up or down.

INVESTMENT PROPERTY

In the secondary mortgage market context, this term describes a property being purchased for non-owner occupant use.

INVESTOR
A money source for a lender.

INTERIM FINANCING
A construction loan made during completion of a building or a project. A permanent loan usually replaces this loan after completion.

-J-

JOINT OWNERSHIP AGREEMENT
An agreement between owners defining their rights, ownership, monetary obligations and responsibilities. This could be between and investor and an occupant or the occupants. If an investor is involved, the investor does not take depreciation deductions and none of the occupant's payment is deemed rent for tax purposes.

JOINT TENANCY
Two or more persons own a property. Joint tenants with the common law right of survivorship means the survivor inherits the property without reference to the decedent's will. Creditors may sue to have the property divided to settle claims against one of the owners.

JUMBO

Generally, refers to a mortgage loan where the proposed loan amount is higher than what Fannie Mae or Freddie Mac will allow on a single transaction. These amounts are often increased a little bit annually.

-L-

LIEN
A claim or charge against property. Property is said to be encumbered by a lien and the lien must be removed to clear title

LIQUID ASSETS

Refers to cash accounts in depository institutions, stocks, bonds, etc.; that have an instant redeemable value.

LOAN ORIGINATOR (A.K.A., Loan Officer or LO)

Refers to the individual in the retail portion of the mortgage cycle who seeks applicants for mortgages. This is normally, a commissioned salesperson who solicits referral sources and individual borrowers for mortgage loans.

LOAN PROCESSOR

A mortgage professional who has the primary duty of gathering necessary documents to support data on a delivered loan application for underwriter review.

LOAN PROSPECTOR (LP)

Loan Prospector is the name of the internet based, automated underwriting system used by Freddie Mac.

LOAN-TO-VALUE RATIO (LTV)
The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage.

-M-

MARGIN
The amount a lender adds to the index on an adjustable rate mortgage to establish the adjusted interest rate.

MARKET VALUE
The highest price that a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time.

MATTRESS MONEY

Refers to an old-timer's term for money "hidden in a mattress". In the mortgage industry, it refers to funds that are considered 'unseasoned' and 'undocumented' so it is often excluded from being usable funds for closing.

MORTGAGE
A voluntary lien filed against property to secure a debt, usually a loan. To foreclose, the lender must often institute a court action and the borrower may have the right to reclaim the property after foreclosure.

MORTGAGE INSURANCE (MI)

Money paid to insure the mortgage when the down payment is less than 20 percent.

MORTGAGE INSURANCE PREMIUM (MIP)
One-half percent borrowers pay each month on FHA insured mortgage loans. It is insurance from FHA to the lender against incurring a loss on account of the borrower's default. On September 1, 1983, the MIP was changed to a one-time charge to the borrowers.

MORTGAGEE
The lender

MORTGAGOR
The borrower or homeowner

-N-

NEGATIVE AMORTIZATION

Occurs when your monthly payments are not large enough to pay all the interest due on the loan. This unpaid interest is added to the unpaid balance of the loan. the danger of negative amortization is that the home buyer ends up owing more than the original amount of the loan.

NEGOTIABLE RATE MORTGAGE

Loan in which the interest rate is adjusted periodically.

NET EFFECTIVE INCOME
The borrower's gross income minus federal income tax.

NON ASSUMPTION CLAUSE
A statement in a mortgage contract forbidding the assumption of the mortgage without the prior approval of the lender. Note: The signed obligation to pay a debt, as a mortgage note.

NON-TRADITIONAL CREDIT

This refers to a type of credit reference from a creditor who does not routinely, report consumer payment data to the national credit repositories.

NOTE
A written promise to pay a certain sum of money at a certain time. A negotiable note starts "Pay to the order of" and is transferable by endorsement similar to a check. Also called a 'promissory note'

-O-

ORIGINATION FEE
The fee charged by a lender to prepare loan documents, perform credit checks, inspect and sometimes appraise a property; usually computed as a percentage of the face value of the loan.

-P-

PERMANENT LOAN

A long term mortgage, usually ten years or more. Also called an "end loan."

PITI
Principal, Interest, Taxes and Insurance. Also called monthly housing expense.

PLEDGED ACCOUNT MORTGAGE
Money is placed in a pledged savings account and this fund plus earned interest is gradually used to reduce mortgage payments.

POINTS
Prepaid interest assessed at closing by the lender. Each point is equal to 1 percent of the loan amount (e.g., two points on a $100,000 mortgage would cost $2,000).

POWER OF ATTORNEY

A written document authorizing another to act on his behalf as an Attorney in Fact. One does not need to be a licensed attorney to act as an attorney in fact but, power of attorney forms are powerful legal documents that should be used only under advice of a licensed attorney at law.

PREPAID EXPENSES
Necessary to create an escrow account or to adjust the seller's existing escrow account. Can include taxes, hazard insurance, private mortgage insurance and special assessments.

PREPAYMENT

A privilege in a mortgage permitting the borrower to make payments in advance of their due date.

PREPAYMENT PENALTY
An additional charge imposed by the lender for paying off a loan before the due date.

PRIMARY MORTGAGE MARKET
Lenders making mortgage loans directly to borrower's such as savings and loan association, commercial banks, and mortgage companies. These lenders sometimes sell their mortgages into the secondary mortgage markets.

PRINCIPAL
The amount of debt, not counting interest, left on a loan.

PRIVATE MORTGAGE INSURANCE (PMI)
In the event that you do not have a 20 percent down payment, lenders will allow a smaller down payment as low as 5 percent in some cases. With the smaller down payment loans, however, borrowers are usually required to carry private mortgage insurance. Private mortgage insurance will require an initial premium payment of 1.0 percent to 5.0 percent of your mortgage amount and may require an additional monthly fee depending on you loan's structure.

-Q-

QUITCLAIM DEED
A deed releasing whatever interest you may hold in a property but making no warranty whatsoever.

-R-

REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA)
RESPA is a federal law that allows consumers to review information on known or estimated settlement cost once after application and once prior to or at a settlement. The law requires lenders to furnish the information after application only.

REALTOR®
A real estate broker or an associate holding active membership in a local real estate board affiliated with the National Association of Realtors.

RECESSION
The cancellation of a contract. With respect to mortgage refinancing, the law that gives the homeowner three days to cancel a contract in some cases once it is signed if the transaction uses equity in the home as security.

RECORDING FEES
Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.

REDUCED DOCUMENTATION

Normally, refers to a sub-prime loan where the borrower is unable to provide income capacity suffice for the prime, secondary mortgage market investors.

REFINANCE
Obtaining a new mortgage loan on a property already owned. Often to replace existing loans on the property.

RESERVES

Refers to documented liquid assets that remain after closing. If a borrower is able to make down payment, pay settlement costs and still has some well documented cash left over, they are said to have good 'reserves'. This often allows for underwriting exceptions on other weak areas of the loan application.

RESIDENTIAL LOAN APPLICATION (A.K.A., Uniform Residential Loan Application or 1003)

The official loan application issued from the secondary mortgage market investors and acknowledged by HUD and VA to be used for residential mortgage loans.

RESIDENTIAL MORTGAGE CREDIT REPORT (RMCR)

Residential Mortgage Credit Report (RMCR) is a supplemental report that provides details on four or more items that were flagged from an infile credit report. RMCR is the most complete and comprehensive reports and include separate information going back two-to-seven years for both the borrower and co borrower.

REVERSE ANNUITY MORTGAGE
Form of mortgage in which the lender makes periodic payments to the borrower using the borrower's equity in the home as Satisfaction of Mortgage: The document issued by the mortgagee when the mortgage loam is paid in full. Also called a "release of mortgage."

-S-

SALES CONTRACT

A detailed, written document that makes an offer to purchase a property, and that may be amended several times in the process of negotiations. When signed by all parties involved in the sale, the purchase offer becomes a legally binding contract, sometimes called the "Sales Contract".

SEASONING

Implies that a certain period of time has past to accurately establish a pattern of asset, credit, income and collateral capacity to the underwriter's satisfaction. An example of this could be: Liquid assets or 'cash' must normally have been documented to be in a depository account for at least 60 days to be considered 'seasoned' or 'good funds'.

SECOND MORTGAGE
A mortgage made subsequent to another mortgage and subordinate to the first one.

SECONDARY MORTGAGE MARKET
The place where primary mortgage lenders sell the mortgages they make to obtain more funds to originate more new loans. It provides liquidity for the lenders.

SERVICING

Refers to all the steps and operations a lender performs to keep a loan in good standing, such as collection of payments, payment of taxes, insurance, property inspections and the like.

SHARED APPRECIATION MORTGAGE
Mortgage in which a borrower receives a below-market interest rate in return for which the lender (or another investor such as a family member or other partner) receives a portion of the future appreciation in the value of the property. May also apply to mortgage where the borrowers shares the monthly principal and interest payments with another party in exchange for part of the appreciation.

SIMPLE INTEREST
Interest which is computed only on the principle balance.

SUB-PRIME (A.K.A., 'B or C Paper')

The common mortgage industry characterization for loans that have higher terms than prime lenders but take more risks on borrower capacity. May include bad-credit borrowers or other loan scenarios where data on the loan application is unverifiable or undocumented to the standards of the prime market.

SURVEY

A measurement of land, prepared by a registered land surveyor, showing the location of the land with reference to know points, its dimensions, and the location and dimensions of any buildings.

SWEAT EQUITY

Equity created by a purchaser performing work on a property being purchased.

-T-

TENANTS BY THE ENTIRETY
A husband and wife own the property with the common law right of survivorship so, if one dies, the other automatically inherits.

TENANT IN COMMON
Two or more persons own the property with no right of survivorship. If one dies, his interest passes to his heirs, not necessarily the co-owner. Either party, or a creditor of one, may sue to partition the property.

TITLE
Document that gives evidence of an individual's ownership of property

TITLE INSURANCE

Insurance that provides an indemnity against loss or damage as a result of defect in title ownership to a particular piece of property. Title insurance covers mistakes made during a Title Search as well as matters which could not be found or discovered in the public records such as missing heirs, mistakes, fraud and forgery.

TITLE SEARCH (A.K.A. Title Commitment)

An examination of municipal records to determine the legal ownership of property. This research is usually is performed by a title company who issues a 'binder' or 'commitment' listing the results and exceptions specific to the subject property.

TRUTH-IN-LENDING (TIL)
Federal law requiring disclosure of the Annual Percentage Rate to home buyers shortly after they apply for the loan.

TWO-STEP MORTGAGE
Mortgage in which the borrower receives a below-market interest rate for a specified number of years (most often seven or 10), and then receives a new interest rate adjusted (within certain limits) to market conditions at that time. the lender sometimes has the option to call the loan due with 30 days notice at the end of seven or 10 years. also called "Super Seven" or "Premier" mortgage.

-U-

UNDERWRITING
The decision whether to make a loan to a potential home buyer based on credit, employment, assets, and other factors and the matching of this risk to an appropriate rate and term or loan amount.

USURY
Interest charged in excess of the legal rate established by law.

-V-

VA LOANS
Long-term, low-or no-down payment loan guaranteed by the Department of Veterans Affairs. Restricted to individuals qualified by military service or other entitlements.

VA MORTGAGE FUNDING FEE

Premium of up to 1-7/8 percent (depending on the size of the down payment) paid on a VA-backed loan. On a $75,000 fixed-rate mortgage with no down payment, this would amount to $1,406 either paid at closing or added to the amount financed.

VERIFICATION OF DEPOSIT (VOD)

Document signed by the borrower's financial institution verifying the status and balance of his/her financial accounts.

VERIFICATION OF EMPLOYMENT (VOE)
Document signed by the borrower's employer verifying his/her position and salary.

-W-

WAREHOUSE FEE
Many mortgage firms must borrow funds on a short term basis in order to originate loans which are to be sold later in the secondary mortgage market (or to investors). When the prime rate of interest is higher on short term loans than on mortgage loans, the mortgage firm has an economic loss which is offset by charging a warehouse fee.

WRAPAROUND

Wraparound results when an existing assumable loan is combined with a new loan, resulting in an interest rate somewhere between the old rate and the current market rate. The payments are made to a second lender or the previous homeowner, who then forwards the payments to the first lender after taking the additional amount off the top. The debt secured includes an existing debt already on the property. The payments made to the holder of the wraparound include payments due on the existing loan and the holder must forward the appropriate portion of each payment to the existing note holder.

-Y-

YTD

Refers to an acronym for "year-to-date" income.

-Z + numerical terms-

401K

The 401(k) plan is a type of employer-sponsored retirement plan named after a section of the United States Internal Revenue Code. A 401(k) plan allows a worker to save for retirement while deferring income taxes on the saved money or earnings until withdrawal.

All information herein contained in from sources deemed reliable, but no warranty is made as to its accuracy. SUBJECT TO ERRORS AND OMISSIONS.

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Classes are held in Alabama (Mobile, Montgomery), Arizona, (Scottsdale, Phoenix, Flagstaff, Tucson) Arkansas (Little Rock, Bentonville) California (Oakland, Los Angeles, Sacramento, San Diego, San Francisco) Colorado (Denver, Colorado Springs), Connecticut, Delaware (Wilmington), Florida (Miami, Pensacola, Jacksonville, Tampa, Orlando, Daytona), Georgia (Atlanta), Iowa (Des Moines, Quad Cities), Idaho (Boise), Illinois (Chicago, Springfield), Indiana (Indianapolis), Kansas (Wichita, Topeka, Overland Park), Kentucky (Louisville, Bowling Green), Louisiana (New Orleans), Nevada (Las Vegas, Reno, Carson City) North Dakota (Bismarck), North Carolina (Raleigh Durham, Charlotte), New York (Buffalo, New York, Syracuse, Manhattan, Brooklyn) New Jersey (Newark) New Mexico (Albuquerque), Nebraska (Omaha, Lincoln) Mississippi (Gulfport, Jackson), Massachusetts (Boston), Maryland (Baltimore), Maine (Portland, Bangor), Michigan (Detroit), Montana (Butte), Minnesota (St Paul, Minneapolis), Missouri (Kansas City, St Louis, Columbia, Springfield) Oklahoma (Tulsa, Oklahoma City), Ohio (Cleveland, Cincinnati, Dayton), Oregon (Portland), Rhode Island (Providence), San Francisco, San Diego, Sacramento, Pennsylvania (Philadelphia, Pittsburg, Harrisburg) Tennessee (Chattanooga, Memphis, Nashville) Texas (Dallas, Houston, Austin, San Antonio), South Dakota, South Carolina, Utah (Salt Lake City), Washington (Seattle, Spokane, Eugene), Wisconsin (Madison) Wyoming (Cheyenne) West Virginia (Richmond, Newark) & Realtor Continuing Education in select areas. Online Training, Online Classes, Online Continuing Education, Online Training for Loan Originators, Calyx Software Training, Encompass Software Training, Ellie Mae Software Training, FHA Basic Training, FHA Loan Origination Training, FHA Loan Processing Training, FHA Processing Training, FHA Connection Training, FHA Loan Officer Training, VA Loan Training, Veterans Affair Training, FHA Loans, Government Loan Processing Training, FHA Underwriting Training, Government Loan Training, Wholesale Lending Training, Mortgage Underwriting Training, Online FHA Training, Online FHA Mortgage Loan Processing Training, VA Mortgage Loan Processing Training, Mortgage Net Branch Opportunities, Net Branch Jobs, Mortgage Jobs, Loan Origination Jobs, Mortgage Careers, Mortgage Broker Jobs, Mortgage Job Placement, Mortgage Loan Originator Job Placement, Mortgage Loan Officer Jobs, Mortgage Loan Processor Jobs ..