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 A List Of Mortgage Terms You Might Find Useful

By Jim Pendleton - Mr MortgageTM    Copyright© 2001-10

Mortgage bank loan terms

   Glossary of Key Mortgage bank loan Terminology -

Mortgage bank loan terms that might be of help when Mortgage bank  loan terms seems confusing, just refer to the Mortgage bank  loan terms here and get your answers to what Mortgage bank loan terms are.

Adjustable Rate Mortgage (ARM): Household finance loan loans under which the charge of interest is periodically adjusted to additional closely coincide are agreed to at the inception from the mortgage.

Alternative Documentation: The use of pay stubs, W-2 forms, and bank statements in lieu of Verifications of Employment (VOE) and Verifications of Deposit (VOD) to qualify a borrower for a mortgage.

Amortization: The systematic and continuous payment of an obligation through installments until the monetary debt has been paid out in full.

Annual Percentage Rate (APR): A term used within the Truth-in-Lending Act to existing the percentage relationship with the total finance charge towards volume of the mortgage. The APR reflects the price tag on the mortgage mortgage like a yearly rate. It could be higher than the interest fee stated on the Note simply because it consists of, in addition to the interest charge, loan discount factors, miscellaneous expenses and mortgage insurance policies.

Appraisal: A report built by a qualified individual setting forth an opinion or estimate of household value. (Appraisal also refers towards the course of action by means of which a conclusion on house benefit is derived.)

Appraisal Value Appraised Worth: The fair market worth of your home determined by an independent appraisal. The appraisal uses local actual estate current market sales activity being a major basis for valuation.

Appreciation: An improve from the importance of your property due to market problems or other causes. The opposite is depreciation.

Balloon Mortgage: A fixed-rate property finance loan for a set number of years and then must be paid off in full in a single "balloon" payment. Balloon financial loans are well-liked with borrowers expecting to sell or refinance their residence within a definite period of time.

Bankruptcy: Legal relief from the payment of all debts after the surrender of all assets with a court-appointed trustee. Assets are distributed to creditors as full satisfaction of debts, with a number of priorities and exemptions. Anyone, firm or corporation may declare bankruptcy below one of many chapters with the U. S. Bankruptcy Code: Chapter 7 covers liquidation with the debtor's assets; Chapter 11 covers reorganization of bankrupt businesses; Chapter 13 covers payment of debts by people via a bankruptcy plan.

Cap: The limit placed on adjustments that is usually built for the fee of interest or payments including the annual cap on an adjustable price mortgage (ARM) or the cap more than a charge over the life in the bank loan.

Cash-out Refinance: To refinance the mortgage mortgage on a house for a lot more than the principal owed. This allows the borrower to get cash from the equity in their property. Loan products may possibly vary on how much could be borrowed on the cash-out refinance.

Certified House finance mortgage Specialist (CMS): The Certified Residence bank loan Specialist will be the professional sales associate who communicates the requirements from the agent and borrower to the operation team.

Client Coordinator (CC): The Client Coordinator sets the tone throughout the application process and ensures that each customer is kept informed of all needs and status as a result of clear and concise communication.

Closer: The individual who coordinates the closing time while using the Client Coordinator and reviews and prepares the necessary closing documents.

Closing: Also known as settlement, the finalization on the practice of purchasing or refinancing actual estate. The closing consists of the delivery of the Deed, the signing of Notes and also the disbursement of funds

Closing Costs: Expenditures which have been due at closing, additionally on the purchase selling price in the residence. These costs normally include, but aren't restricted to, origination fee, discount factors, attorney's charges, charges for title insurance, surveys, recording documents, and prepayment of authentic estate taxes and insurance coverage premiums held through the loan provider. Occasionally the seller will aid the borrower pay some of these costs.

Closing Statement: An accounting with the debits and credits incurred at closing. All FHA, VA and Traditional financing financial loans use a Uniform Closing or Settlement Statement commonly referred to as the HUD-1.

Co-Borrower: A party who signs the mortgage bank loan note along with all the primary borrower, and who also shares title on the subject genuine estate.

Collateral: Residence pledged as security for any debt. For instance, real estate that secures a mortgage loan. Collateral can be repossessed if the loan is not repaid.

Combined loan To Value (CLTV). The mathematical relationship among the total of all mortgage amounts (very first mortgage plus subordinate liens) together with the importance on the subject residence.

Community Reinvestment Act (CRA): This act calls for economic institutions to meet the credit score desires of their community, including low and moderate-income sections of the local community. It also needs banks to produce reports concerning their investment in the areas exactly where they do business.

Condominium: A form of asset ownership in which the homeowner holds title to an individual dwelling unit, an undivided fascination in frequent areas of a multi-unit project, and at times the exclusive use of selected constrained prevalent places. All condominiums should meet a number of investor requirements.

Conforming Loan: A mortgage with a residence loan total that does not exceed that which is eligible for purchase by FNMA or FHLMC. All financial loans are regarded as either as conforming or non-conforming, also acknowledged as jumbo.

Traditional Loan: A house loan bank loan not insured or guaranteed from the federal government.

Conversion Option: Options to convert an adjustable pace property finance loan or balloon loan with a fixed pace residence finance bank loan below specified conditions.

Co-Signer: A party who signs the mortgage note along using the borrower, but who won't own or have any attention inside title for the household.

Creditor: Anyone to whom financial debt is owed by one more person who could be the "debtor".

Credit Rating: A rating given someone or business to establish credit-worthiness dependent upon existing economical problem, knowledge and past credit score background.

Credit Report: A document completed by a credit-reporting agency providing information about the buyer's credit history cards, previous mortgage background, bank financial loans and public records dealing with fiscal matters.

Deal Structure: An Underwriters review of a number of aspects of a loan application that do not meet standard guidelines.

Debt to Income Ratio: Compares the volume of monthly revenue on the amount the borrower will owe each and every month in house payment (PITI) plus other debts. The other debts may well include but not restricted to car payment, credit score cards, alimony, child support, and personal financial loans. This ratio is frequently utilised to see if the borrower has the capacity to repay the credit score card debt.

Deed of Trust: A legal document that conveys title to actual estate to a disinterested third party (trustee) who holds the title until the owner from the residence has repaid the debt. In states exactly where it's utilised, a Deed of Trust accomplishes essentially the same purpose as a home finance loan.

Default: Failure to comply while using terms of any agreement. In genuine estate, generally applied in connection with a home loan obligation to refer on the failure to comply while using the terms with the Promissory Note. Most usually this default is really a failure to produce payments, even so, there are other means by which a borrower may well default, including the failure to pay actual estate taxes.

Depreciation: A decline within the selling price of house. The opposite of appreciation.

Discount Points: A percentage in the loan quantity which is charged or credited by the financial institution upon making a property finance loan bank loan. Financial loans that happen to be built at the present industry pace, with no things, are regarded being created at "par." Due to the fact in the lender's ability to cost or credit history factors on an person loan, the lender is able to tailor a bank loan program and price of interest to fit the wants of every single person borrower. Discount factors is usually negotiated within the Order Contract to be paid out by either the seller or the borrower.

Each point equals 1% from the property finance loan mortgage. For example, a charge of 1 point on the $50,000 mortgage would result in a charge of $500; 1/2 point would be $250 ($50,000 x .50%).<br>

Down Payment: The part of the order cost which the buyer pays in money and does not finance with a property loan.

Earnest Money: Deposit made by a purchaser of authentic estate as evidence of good faith.

Equal Credit Opportunity Act (ECOA): Also recognized as Regulation B. A federal law that prohibits a lender from discriminating in house finance mortgage lending on the basis of race, color, religion, national origin, sex, marital status, age, income derived from public assistance programs, or previous exercise of Consumer Credit history Protection Act rights.

Equity: The difference between the current current market benefit of your property together with the principal balance of all outstanding financial loans.

Escrow Account: An account held through the lending institution to which the borrower pays monthly installments for property taxes, insurance, and special assessments, and from which the mortgage provider disburses these sums as they become due.

Fair Credit Reporting Act: Regulated the collection and distribution of details while using consumer credit score reporting industry. It also affects how financial institutions collect and convey credit information about loan applicants or borrowers.

Fair Housing Act: Prohibits the denial or variance with the terms of true estate associated transactions depending on race, color, religion, sex, national origin, disability, or familiar status with the credit history applicant. Genuine estate related transactions include things like a home finance loan, residence improvement, or other loans secured by a dwelling.

Federal House Bank loan Mortgage loan Corporation (FHLMC). Also acknowledged as Freddie Mac. A publicly owned corporation created by Congress to assist the secondary property finance loan industry. It purchases and sells conventional residential mortgages as well as residential mortgages insured while using Federal Housing Administration (FHA) or guaranteed through the Veterans Administration (VA).

Federal National House finance loan Association (FNMA). Also known as Fannie Mae. A privately owned corporation to help the secondary mortgage loan market place. It adds liquidity for the household loan market by investing in residence loans by means of the country.

FICO Score: A credit ratings score provided to someone that establishes creditworthiness determined by existing financial issue, knowledge and past credit ratings history.

Finance Charge: The expense of credit like a dollar total (i.e. total total of awareness and particular other loan charges being paid out more than the term on the mortgage along with other bank loan fees to become compensated by the borrower at closing).<br> Bank loan charges contain origination charges, lower price points, mortgage bank loan insurance, along with other applicable expenses. If the seller pays any of these charges, they cannot be included inside the finance cost.

Financial Statement: A summary of facts showing an individual's or company's fiscal issue. For individuals, it states their assets and liabilities as of your given date. For the business it should include things like a Profit and Loss Statement (P&L) to get a certain period of time and balance sheet, stating assets and liabilities as of a offered date.

First Mortgage: A true estate loan that creates a primary lien against authentic asset.

First rate Adjustment -- First rate adjustment after: In association with an Adjustable Fee Mortgage bank loan loan, this may be the number of months after which the loan has closed when the very first pace of interest adjustment will occur.

Fixed Rate Home mortgage: The type of mortgage exactly where the charge of interest will not change for the entire term in the bank loan.

Floating: The term utilized when a purchaser elects not to lock-in an price of interest at the time of application.

Flood Insurance policies: Insurance plan that compensates for direct physical damages by or from flood towards the insured asset subject for the terms, provisions, problems and losses not covered provision from the policy. It's required for mortgages on properties located in federally designated flood places.

Excellent Faith Estimate (GFE): An estimate of settlement expenses paid through the borrower at closing. The True Estate Settlement Procedures Act (RESPA) needs a Good Faith Estimate of settlement fees be provided towards the borrower.

Gift Letter: A letter or affidavit that indicates that part of your borrower's down payment is supplied by relatives or friends inside the form of a gift and that the gift doesn't have to become repaid.

Gross Revenue: A person's income before deduction for earnings taxation.

Hazard Insurance coverage: Insurance plan against losses caused by perils which are normally covered in policies described being a "Homeowner Policy".

Household Maintenance: Charges associated with maintaining a home. This may perhaps incorporate, but not constrained to, general repairs, replacement or repair of furnace, air conditioning, roof, plumbing and electrical systems.

Home Mortgage Disclosure Act (HMDA). Also recognized as Regulation C. The purpose of HMDA is to provide disclosure of property finance loan lending application activity (household invest in or improvement) to regulators plus the public. Data is collected on every application, and is recorded on the log that is compiled to produce a report on application activity by geographic designation (census tract).

Homeowners Association (HOA). A non-profit corporation or association that manages common locations and services of your Condominium or Planned Unit Development (PUD).

Homeowners Insurance: Insurance coverage that covers damage towards the insureds' residence and liability claims created against the insured subject towards policy terms, problems, provisions, losses not insured provision and exclusions.

Housing Expense Ratio: Ratio utilised to determine the borrowers capacity to repay a property mortgage. The ratio compares monthly income towards the house payment (Principal, Fascination, Taxes and Insurance coverage).<br>

Index: In connection with ARM loans, the external measurement employed by a Fiscal institution to determine future changes which are to occur to an adjustable loan program. These will typically be published rates that happen to be independent of the Lender's control, just like a Treasury Bill.

Initial interest Rate: The beginning pace of interest at the start of an adjustable rate mortgage bank loan (ARM).<br> It may well be lower than the fully indexed rate or "going market place rate" and it will remain constant until it is adjusted up or down on the adjustment date.

Interest: The amount paid by a borrower to a bank loan provider for the use in the lender's cash for a a number of period of time. The amount compensated by a bank on some deposit accounts.

Interest Income: The potential revenue from funds which would have been used for the down payment, closing costs, and any difference (increase) in between monthly rental payment and monthly property finance loan payment.

Interest Rate: The percentage of an volume of money that is compensated for its use to get a specific time; usually expressed as an annual percentage.

Judgment: Decree of an court declaring that one individual is indebted to one more and fixing the sum of such indebtedness.

Jumbo Loan: A loan above the limit set from the Federal National Mortgage mortgage Association (Fannie Mae) and also the Federal Home Loan Property finance loan Corporation (Freddie Mac). Also referred to like a non-conforming bank loan.

Late Charge: additional charge a borrower is required to pay like a penalty for failure to pay a regular household finance loan loan installment when due; a penalty for the delinquent payment.

Lien: A legal claim against a household that should be paid off when the house is sold. A lien is created when you borrow funds and use your property as collateral for the bank loan.

Life of  loan -- Maximum price decrease: In association with an Adjustable Fee Property finance loan mortgage, this may be the most the curiosity can decrease over the life in the mortgage bank loan loan.

Loan Application: A source of facts on which the lender bases a decision to make or not make a bank loan; defines the terms with the mortgage contract, gives the names from the borrower(s), place of employment, salary, bank accounts, credit ratings references, real estate owned, and describes the house being mortgaged.

Loan Balance: The amount of remaining unpaid principal balance owed with the borrower.

Loan Term: Number of years a mortgage is amortized. Mortgage bank loan terms are usually 15, 20, or 30 years.

Loan-to-Value (LTV): The ratio from the total sum borrowed on a mortgage against a residence, compared to the appraised importance with the residence. A LTV ratio of 90 means that the borrower is borrowing 90% on the cost in the asset and paying 10% like a down payment. For purchases, the price with the residence is the lesser in the order price or the appraised worth. For refinances the value is determined by an appraisal.

Loan-to-Value Ratio: The ratio, expressed as being a percentage, in the quantity with the bank loan (numerator) on the price tag or selling selling price of true house (denominator).<br> For example, if you have an $80,000 1st household loan with a home with an appraised importance of $100,000, the LTV is 80% ($80,000 / $100,000 = 80%).<br>

Lock-In: A written agreement among the bank loan company and borrower for any specified period of time in which the loan company will hold a specific fee of interest, origination and/or lower price point(s).

Margin: Below the terms of an adjustable fee property finance loan (ARM), the margin is a set adjustment towards the index. The particular mortgage product determines the total in the margin.

Median Income: The middle income level. Half in the incomes would be higher than the median income and half on the incomes would be below the median earnings. This is not to be confused with an average income.

Mortgage: The written instrument utilised to pledge a title to true estate as security for repayment of the Promissory Note.

Mortgage Insurance: Insurance plan written in connection with a home loan loan that indemnifies the bank loan company inside event of borrower default. In connection with traditional loan transactions, this insurance policy is normally referred to as Private House finance loan Insurance (PMI).

Mortgage Note: A written promise to pay a sum of money at a stated interest rate during a specified term. It's typically secured by a home loan.

Mortgage Servicing: Controlling the required duties of an mortgagee, including collecting payments, releasing the lien upon payment in full, foreclosing if in default, and making sure the taxes are paid, insurance coverage is in force, etc. The bank loan company or a business acting for the lender, for any servicing fee, might do servicing. (Also called Mortgage Servicing.)

MortgageThe institution, group, or individual that lends money on the security of pledged true estate; the association, the bank loan company.

Mortgagee Clause: This could be the clause that is typically utilized for hazard insurance coverage and flood insurance plan. For loans originated due to the fact of the State Farm Bank it will read: State Farm Bank, F.S.B., Its Successor and/or Assigns, P.O. Box 2583, Ft. Wayne, IN 46801-2583.

Mortgagor: The owner of authentic estate who pledges his home as security for the repayment of a fiscal debt; the borrower.

Net Income: The difference among effective gross income and expense including taxes and insurance plan. The term is qualified as net revenue before depreciation and credit history card debt.

Non-Conforming: A loan with a house loan quantity that exceeds that that is eligible for invest in by FNMA or FHLMC. All other loans above this quantity are considered to be non-conforming or jumbo loans.

Non-Owner-Occupied Property: Asset purchased by a borrower not to get a primary residence but as an investment with the intent of generating rental earnings, tax benefits, and profitable resale.

Note: A written promise by one party to pay a specific sum of funds to some second party under conditions agreed upon mutually. Also called "promissory note."

Note Rate: The interest pace on the residence finance bank loan loan.

Origination Fee: A fee paid out with a bank loan company for processing a mortgage application; it is stated as being a percentage with the mortgage quantity.

Origination Process: Practice in which a bank loan provider solicits business, gathers required data and commits to bank loan cash, for the obtain of authentic estate.

Owner-Occupied Property: The borrower or a member of the immediate family lives in the household like a primary residence.

PITI: Term normally applied to refer to a home finance loan bank loan payment. Acronym stands for Principal, Interest, Taxes, and Insurance policies.

PITI Ratio: Compares the quantity with the monthly income on the sum the borrower will owe each month in principal, awareness, true estate tax and insurance coverage with a property finance mortgage. Lenders use it in deciding whether to give the borrower a loan. Also called "income-to-debt" ratio.

Planned Unit Development (PUD): A housing project that may perhaps consist of any combination of homes (one-family to four-family), condominiums, and various other styles. In a PUD, typically the individual unit and the land upon which it sits are owned through the unit/homeowner; however, the homeowner's association owns popular facilities.

Pre-Approval: A procedure in which a customer provides appropriate data on earnings, debts and assets that will be employed to produce a credit history only loan decision. The customer typically has not identified a property to become purchased, nonetheless, a particular sales selling price and loan sum are utilized to create a loan decision. (The sales price tag and bank loan quantity are according to customer assumptions)

Pre-Qualification: A course of action designed to assist a customer in determining a maximum sales price, bank loan sum and PITI payment they are qualified for. A pre-qualification isn't regarded as a mortgage approval. A customer would provide basic information (revenue, debts, assets) to become utilised to determine the maximum sales cost, etc.

Prepaid Expenses or Prepaids: The term used to describe the funds the Bank loan provider needs being deposited to establish the escrow account for taxes and insurance policy at the time of closing (also refers to Prepaid Curiosity).

Prepaid Interest: Interest that the borrower pays the lender before it becomes due.

Prepayment: A mortgage repayment made by borrower in advance of its contractual due date.

Prepayment Penalty: A penalty under a Note, Home finance mortgage or Deed of Trust imposed when the bank loan is paid out before its maturity date.

Principal and Interest: Two components of a monthly mortgage bank loan payment. Principal refers towards portion with the monthly payment that reduces the remaining balance for the residence finance loan. Interest will be the fee charged for borrowing funds.

Principal Balance: The outstanding balance of a property finance loan, not counting current interest.

Principal, Interest, Real Estate Tax, Insurance Payment: The total household bank loan payment which includes principal, interest, taxes and insurance.

Private Mortgage Insurance  (PMI): Insurance policy against a loss by a mortgage provider within the event of default by a borrower (mortgagor). A private insurance coverage firm issues this insurance. The premium is paid out through the borrower and is included in the residence finance mortgage payment.

Processing: Gathering the mortgage application and all required supporting documents (including the house appraisal, credit ratings report, credit background, and earnings and expenses) so that a fiscal institution can consider the borrower for a bank loan.

Promissory Note: A document in which the borrower promises to pay a stated sum on the particular date. The note normally states the name with the bank loan provider, the terms of payment and any interest fee.

Property Taxes: Taxes assessed on real estate. Asset taxes are based on valuations by local and or state governments.

Purchase Agreement: A written agreement among a buyer and seller of actual property, that states the price and terms with the sale.

Purchase Price: The total sum compensated for any house.

Qualifying Income Ratios: Income analysis used by lenders in deciding whether to offer the borrower a mortgage. One type of analysis compares only the sum from the proposed monthly household finance loan payment towards the monthly income. One more compares the amount with the total monthly payments (for instance car, credit rating card and proposed mortgage payments) to the monthly revenue.

Rate Index: An index employed to adjust the interest pace of an adjustable home finance mortgage bank loan.

Real Estate Appreciation Rate: Percentage improve within the importance of real estate, expressed at an annual price tag.

Real Estate Settlement Procedures Act (RESPA). A consumer protection law that calls for, among other things, lenders to give borrowers advance notice of closing expenses.

Realtor: Someone licensed to negotiate and transact the sale of real estate on behalf in the property owner. A actual estate broker or associate have to hold active membership in a true estate board affiliated while using National Association of Realtors.

Recording Fee: The quantity paid out for the recorder's office in order to create a document a matter of public record.

Regulation Z: Federal Reserve regulation issued below the Truth-in-Lending Act, which, among other things, needs that a credit score purchaser be advised in writing of all costs connected while using credit rating portion of the loan.

Rental Payment: A payment manufactured to use another's house. The quantity in the rent is determined in a contract and is typically paid monthly.

Renters Insurance policy: Insurance plan against perils which are frequently covered in policies described as being a "Renters Policy".

Repayment: The payment of a property loan loan over a period of time established when the bank loan is originated.

Rescind: To avoid or cancel in such a way as to treat the contract or other object on the rescission as if it never existed.

Sales Contract: A written agreement among parties stating all terms and problems of a sale.

Savings Rate: The rate of interest someone expects to earn with a savings account or investment account.

Secondary Market: An informal marketplace where existing mortgages are bought and sold. It will be the traditional aftermarket for household mortgage loans that brings together lenders that sell mortgages with lenders, investors and agencies that buy mortgages.

Seller Contribution: The seller may possibly be paying some or all from the borrower's selling price. The amount from the contribution has limitations.

Selling Costs: The expenditures incurred in selling a property. This could consist of Realtor expenses along with other miscellaneous expenses including painting or minor repairs to prepare the property for sale.

Servicing: All the management and operational procedures that the mortgage loan business handles for the life in the loan, up through foreclosure if essential, including: collecting the mortgage payments, ensuring that the taxes and insurance plan charges are compensated promptly, and sending an annual report on the mortgage loan and escrow accounts.

Servicing Released: A stipulation in the agreement for the sale of mortgages in which the Fiscal institution is not responsible for servicing the loan.

Servicing Retained: A loan sale in which the original lender's servicing department continues to service the loan after the sale to some secondary institution or investor.

Settlement Statement: Also referred to being a HUD-1 Settlement Statement. The complete breakdown of expenses involved within the actual estate transaction for both the seller and buyer.

Single-Family Attached Home: A single-family dwelling that is attached to other single-family dwellings.

Single-Family Detached Home: A freestanding dwelling for the single family

Survey: A measurement of land, prepared by a registered land surveyor, showing the location from the land with reference to identified things, its dimensions too as the location and dimensions of any improvements.

Subordinate Financing: An additional lien against the true estate securing borrowers very first mortgage. This lien takes second priority towards the very first mortgage.

Subsequent Rate Adjustment: Maximum rate decrease: In association with an Adjustable Charge Mortgage loan, this could be the most the charge of interest can decrease when it's scheduled for reevaluation and possible adjustment.

Subsequent Rate Adjustment -- Next ARM Adjustment Date: In association with an Adjustable Price tag Mortgage loan, this could be the date scheduled for the next reevaluation and possible adjustment.

Subsequent Rate Adjustment -- Price Change Frequency: In association with an Adjustable Price tag Mortgage loan, this could be the frequency in which possible adjustments may possibly be manufactured towards the interest charge amount for Adjustable Rate Mortgages after the initial adjustment.

Tax Rates: Tax levied from the federal government and some states based with a person's income. Federal earnings tax rates vary depending on the person's adjusted gross earnings.

Tax Savings: The quantity saved on taxes by itemizing deductions on revenue tax returns.

Title: The evidence towards right to or ownership in property. Inside the case of real estate, the documentary evidence of ownership may be the title deed, which specifies in whom the legal state is vested along with the history of ownership and transfers. Title may possibly be acquired through buy, inheritance, devise, gift or via the foreclosure of a home loan.

Title Insurance Policy: A contract by which the insurer, usually a title firm, indicates who has legal title and agrees to pay the insured a particular total of any loss caused by clouds, claims or defects of title to true estate, which the insured has an interest as owner, mortgagee or otherwise.

(a) Owner's Title Policy: Usually issued towards the landowner himself. The owner's title insurance coverage policy is bought and paid out for only once and then continues in force without any further payment. Owner's Title Insurance policies are not assignable.

(b) Mortgagee's Title Policy: Issued on the mortgagee and terminates when the mortgage debt is paid. Inside event of foreclosure, or if the mortgagee acquires title from the mortgagor in lieu of foreclosure, the policy continues in force, giving continued protection against any defects of title which existed at, or prior to, the date of the policy.

Treasury Bills: Fascination bearing U.S. Government obligations sold at a weekly sale. The change in fascination rates paid out on these obligations is frequently employed as the Rate Index for Adjustable Mortgage Loans.

Truth in Lending (TIL): The name offered to the federal statues and regulations (Regulation Z) which are designed primarily to insure that prospective Borrowers of credit received credit and expense facts before concluding a loan transaction.

Underwriting ( Re: Mortgage loans). The method of evaluating a loan application to determine the risk involved for the lender. It involves an analysis of the borrower's creditworthiness and the quality of the property itself.

Verification of Deposit (VOD): Form used in mortgage lending to verify the deposits or assets of a prospective borrower when monthly statements are unavailable or unusable.

Verification of Employment (VOE): Form used in mortgage lending to verify the employment and income of a prospective borrower when pay stubs and W2 forms are unavailable or unusable.

Verification of Mortgage (VOM): Form used in mortgage lending to verify the existing mortgage balance, monthly payments and late payments, if any.

Verification of Rent: Form used in mortgage lending to verify monthly rents paid and late payments, if any.