Vocab

Limitation to the use of ones property. Also referred to as a Deed Restriction

Equity based lending designed to take equity away from the borrower

Amount of claim, ownership or capital put into an investment

Cash payment made by the insured to cover the portion of damage or loss.

Requires Assets to be liquidated in exchange for cancellation of debt. If a company files they must cease operations.

Includes all calendar days except Sundays and legal holidays

A residential structure that contains 1-4 units, whether or not that structure is attached to real property

A property is considered to be jointly owned by both spouses and only divided upon divorce

Legal process that helps settle disputes among different parties

Financial obligation imposed by a gov't authority for breaking a law or rule

Individuals share ownership equally. In case of death of one ownership is transferred directly to the other

A requirement or stipulation in a legal agreement

Part of a legal agreement where a person acknowledges they understand what they are signing

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

Tax deferred trust account that assists families in funding educational expenses for 18 and under

Person who signs a credit application and is equally responsible for the debt/repayment

Clause allowing a mortgage to be taken over by another. Contains conditions on how it can take place

An individual who accepts a fee for providing their personal info as if they were the buyer

An account maintained by mortgage companies to collect amounts such as hazard insurance, taxes, PMI

Clause requiring payment in full if there is fraud or misrepresentation from the borrower during processing

Account set up with a 3rd party that acts much like an insurance policy. MLOs required to have one in many states

Occurs following a violation of ECOA when the creditor must remedy a violation.

The interest stated on a mortgage note

To excuse an offense without penalty

Lending practice targeting minorities consumer in order to charge them more costs

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

Provides holder with right to demand the full amount of loan is due immediately upon default

Compensation paid to a mortgage broker by a lender for giving a borrower a rate that exceeded the going rate.

Rule that lending institutions must have a certain amount of reserves to help protect them and the consumer

A fake affiliated business arrangement designed to split fees

Real Estate investment in which a property is bought and sold for an increased price. Could be fraudulent.

Automated underwriting system for FNMA

The borrower in a purchase transaction

Fee the lender may receive for selling or transferring right for a mortgage loan

Loan relying on the sale or refinance of a property

The seller is able to transfer the mortgage to the new buyer. Lenders generally require a credit review

Practice of denying/making unfavorable terms in a credit transaction based on the demographic of a particular region

Increase in the value of a capital asset that gives it a higher worth than the purchase price

Advertising terms that when used require need for specific disclosures in an agreement.

HUD Term to describe: 1) Single 2) Pregnant 3) Children under 18

A document used in manual underwriting a mortgage loan

Creditors combine different types of non-traditional features in one loan

Security against loss or damage and compensation or security given to reimburse any loss or damage incurred

Document used in place of a mortgage to secure payment of a note

Clause protecting lender by preventing borrower from assigning debt to another person without approval

The lending of money with an interest rate, typically a higher one

Allows re-conveyance once the debt is paid in full. The mortgagee has no legal ties to the property futher

Conveys ownership from one party to another but the seller will only guarantee the history of ownership for their stay

Government takes private property for public use. Owner receives payment for fair market value.

Legal document that authorizes one person to act on another's behalf

To send money as a payment for debt

Action done with all honesty

A deed the seller uses to convey whatever interest he has in the real property. Contains no guarantees to the buyer.

A clause allowing one or both parties to back out without penalty if certain conditions occur

No repairs will be performed as a condition of the home

Fannie or Freddie security that represents an undivided interest in a group of mortgages.

A special exemption of a zoning law to allow the property to be used in a manner different from existing law

Involving a great deal of effort and difficulty

Foreclosure process: Lender can sell home w/o a lawsuit

Each stockholder is entitled to live in a specific unit of the structure and pays a portion of the costs

Portion of principal and interest due on a loan that is written off when deemed noncollectable.

Clause requiring payment in full of the mortgage debt if it is being sold or if ownership rights are being transferred

Increase in interest rates or home values

Database used by Real Estate Agents to exchange info

A note or loan based on trust between the lender and borrower rather than collateral

The more risky the loan the higher the rate

A loan paid in full upon the lenders demand. May also be called a Demand Loan

Factors such as equity, assets, credit score that reflect a borrowers ability to repay

Conveys ownership from one party to another with the guarantee there are no encumbrances on the title

Average of the APR rates offered to highly qualified buyers.

Financial Penalties imposed on a legal defendant in addition to civil penalties.

Foreclosure where the lender files a lawsuit to obtain legal title to the home

A plea in a criminal prosecution w/o admitting guilt

Loan secured by collateral but does not hold the borrower personally liable for all the debt

Legal statement/document that affirms something

Right to access property for a specific purpose

Quick loan processing through a computer based system

An individual or entity such as a lender that regularly extends closed-end or open-end credit

Legal document guaranteeing the seller is the true owner an no other claims exist

A second mortgage to help cover the cost of a borrowers down payment

List of those who have held ownership in the property

Transferring ownership interest in real property from one party to another

The Board of Governors of the Federal Reserve

Basing loan approval solely on the amount of worth in the home