MORTGAGE GLOSSARY
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 Abstract (Of Title) A summary of the public records relating to the title to a particular piece of land. An attorney or title insurance company reviews an abstract of title to determine whether there are any title defects which must be cleared before a buyer can purchase clear, marketable, and insurable title.
Acceleration Clause Condition in a mortgage that may require the balance of the loan to become due immediately, if regular mortgage payments are not made or for breach of other conditions of the mortgage.
Adjustable-Rate Mortgage (ARM) A mortgage that changes interest rate periodically based upon the changes in a specified index.
Agreement of Sale Known by various names, such as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. A contract in which a seller agrees to sell and a buyer agrees to buy, under certain specific terms and conditions spelled out in writing and signed by both parties.
Amortization A payment plan which enables the borrower to reduce his debt gradually through monthly payments of principal.
Annual Percentage Rate (APR) What exactly the loan cost. It isthe actual annual cost of the credit. The APR represents the relationship of all the finance charges (interest, loan fees, points) to the amount of the loan.The higher the APR, higher the cost of the credit.
Application A type of form that is used to record pertinent information about a borrower who is seeking a mortgage or a loan to finance real property or an asset. It is known as Uniform Residential Loan Application or from 1003 in mortgage industry.
Appraisal An expert opinion or estimate of the quality or value of real property at a given time..
Appraised value Opinion of a certified appraiser drawn from empirical data and based on on three valuation methodologies.
Appreciation Increase in the value of property due to changes in valuation usually based upon market and other conditions that affect the property. It is the opposite of depreciation where an asset or property loses value.
Assets Anything of value tangible or intangible.
Assumption of Mortgage An obligation undertaken by the purchaser of property to be personally liable for payment of an existing mortgage. In an assumption, the purchaser is substituted for the original mortgagor in the mortgage instrument and the original mortgagor is to be released from further liability in the assumption, the mortgagee's consent is usually required.
The
original mortgagor should always obtain a written release from further
liability if he desires to be fully released under the
assumption. Failure to obtain such a release renders the
original mortgagor
liable if the person assuming the mortgage fails to make the monthly
payments.
An "Assumption of Mortgage" is often confused with "purchasing subject to a mortgage." When one purchases subject to a mortgage, the purchaser agrees to make the monthly mortgage payments on an existing mortgage, but the original mortgagor remains personally liable if the purchaser fails to make the monthly payments. Since the original mortgagor remains liable in the event of default, the mortgagee's consent is not required to a sale subject to a mortgage.
Both "Assumption of Mortgage" and "Purchasing Subject to a Mortgage" are used to finance the sale of property. They may also be used when a mortgagor is in financial difficulty and desires to sell the property to avoid foreclosure.
Binder
or "Offer to Purchase" A preliminary agreement,
secured by the payment of earnest money, between
a buyer and seller as an offer to purchase real estate. A binder secures
the right to purchase real estate upon agreed terms for a limited
period of time. If the buyer changes his mind or is unable to purchase,
the earnest money is forfeited unless the binder expressly provides
that it is to be refunded.
Broker A middleman who for a fee or a consideration, assists two parties in the negotiation and completion of a transaction.
Building Line or Setback Distances from the ends and/or sides of the lot beyond which construction may not extend. The building line may be established by a filed plat of subdivision, by restrictive covenants in deeds or leases, by building codes, or by zoning ordinances.
Buydown mortgage When a borrower pays a portion of the interest or cost upfront to the lender to purchase or "buydown" the interest rate of the loan in question.The buydown usually qualifies the individual to a loan which may not be possible otherwise.
Cap A limit of interest rate amount or mortgage payment that can increase or decrease for an adjustable rate mortgage.
Certificate of Title A certificate issued by a title company or a written opinion rendered by an attorney that the seller has good marketable and insurable title to the property which he is offering for sale. A certificate of title offers no protection against any hidden defects in the title which an examination of the records could not reveal. The issuer of a certificate of title is liable only for damages due to negligence. The protection offered a homeowner under a certificate of title is not as great as that offered in a title insurance policy.
Clear Title The title to real property that is free and "clear" of any obligations,liens or other legal issues about the ownership and can be transffered freely to the next successor.
Closing The final meeting where the real property transaction is "closed" or "settled" by an attorney or a settlement agent.
Closing
Costs The numerous expenses which buyers and sellers
normally incur to complete
a transaction in the transfer of ownership of real estate. These
costs are in addition to price of the property, and are items that
are prepaid at the closing day. This is a typical list:
BUYER'S
EXPENSES
SELLER'S EXPENSES
Documentary Stamps on Notes
Cost of Abstract
Recording Deed and Mortgage
Documentary Stamps on Deed
Escrow Fees
Real Estate Commission
Attorney's Fee
Recording Mortgage
Title Insurance
Survey Charge
Appraisal and Inspection
Escrow Fees
Survey Charge Attorney's
Fee
The agreement of sale negotiated previously between the buyer and the seller may state in writing who will pay each of the above costs.
Closing
Day The day on which the formalities of a real estate
sale are concluded. The
certificate of title, abstract, and deed are generally prepared for the
closing by an attorney and this cost charged to the buyer. The buyer signs
the mortgage, and closing costs are paid. The final closing merely confirms
the original agreement reached in the agreement of sale.
Cloud (On Title) An outstanding claim or encumbrance which adversely affects the marketability of title.
Collateral An asset that is pledged for a mortgage or a loan.The lender has recourse to this asset in case of a default on the loan.
Commission Money paid to a real estate agent or broker by the seller as compensation for finding a buyer and completing the sale. Usually it is a percentage of the sale price--6 to 7 percent on houses, 10 percent on land.
Commitment letter A formal letter of intent from a lender to loan money to a borrower.
Condemnation
The taking of private property for public use by a government
unit, against
the will of the owner, but with payment of just compensation under
the government's power of eminent domain. Condemnation may also be a determination
by a governmental agency that a particular building is unsafe or unfit for use.
Condominium
Individual ownership of a dwelling unit and an individual
interest in the
common areas and facilities which serve the multi-unit project.
Contract
of Purchase (See agreement of sale)
Contractor
In the construction industry, a contractor is one who contracts
to erect buildings
or portions of them. There are also contractors for each phase of
construction: heating, electrical, plumbing, air conditioning, road building,
bridge and dam erection, and others.
Conventional
Mortgage A mortgage loan not insured by HUD or guaranteed
by the Veterans' Administration.
It is subject to conditions established by the lending institution
and State statutes. The mortgage rates may vary with different
institutions and between States. (States have various interest limits.)
Cooperative Housing An apartment building or a group of dwellings owned by a corporation, the stockholders of which are the residents of the dwellings. It is operated for their benefit by their elected board of directors. In a cooperative, the corporation or association owns title to the real estate. A resident purchases stock in the corporation which entitles him to occupy a unit in the building or property owned by the cooperative. While the resident does not own his unit, he has an absolute right to occupy his unit for as long as he owns the stock.
Conventional mortgage Any mortgage that is issued by a private entity and is not guaranteed or is insured by a Federal Agency or the government.
Credit history An individual's record of current and past payments compiled by a credit bureau.The credit legend indicates a borrower's future willingness to repay debts.
Credit report An electronic dossier prepared by a credit reporting agency usually for the benifit of creditor or credit granting institution.This report uses private and public records and information provided by creditors to show an individual's previous records of debt payment.
Deed A formal written instrument by which title to real property is transferred from one owner to another. The deed should contain an accurate description of the property being conveyed, should be signed and witnessed according to the laws of the State where the property is located, and should be delivered to the purchaser at closing day. There are two parties to a deed: the grantor and the grantee. (See also deed of trust, general warranty deed, quitclaim deed, and special warranty deed.)
Deed of Trust Like a mortgage, a security instrument whereby real property is given as security for a debt. However, in a deed of trust there are three parties to the instrument: the borrower, the trustee, and the lender, (or beneficiary). In such a transaction, the borrower transfers the legal title for the property to the trustee who holds the property in trust as security for the payment of the debt to the lender or beneficiary. If the borrower pays the debt as agreed, the deed of trust becomes void. If, however, he defaults in the payment of the debt, the trustee may sell the property at a public sale, under the terms of the deed of trust. In most jurisdictions where the deed of trust is in force, the borrower is subject to having his property sold without benefit of legal proceedings. A few States have begun in recent years to treat the deed of trust like a mortgage.
Default Failure to make mortgage payments as agreed to in a commitment based on the terms and at the designated time set forth in the mortgage or deed of trust. It is the mortgagor's responsibility to remember the due date and send the payment prior to the due date, not after. Generally, thirty days after the due date if payment is not received, the mortgage is in default. In the event of default, the mortgage may give the lender the right to accelerate payments, take possession and receive rents, and start foreclosure. Defaults may also come about by the failure to observe other conditions in the mortgage or deed of trust.
Department of Veterans Affairs Agency of the Federal government that guarantees residential mortgages of eligible veterans and reservists.
Depreciation Decline in value of a house due to wear and tear, adverse changes in the neighborhood, or any other reason.
Documentary
Stamps A State tax, in the forms of stamps, required
on deeds and mortgages when
real estate title passes from one owner to another. The amount of stamps
required varies with each State.
Down payment The amount of money to be paid by the purchaser to the seller upon the signing of the agreement of sale. The agreement of sale will refer to the down payment amount and will acknowledge receipt of the down payment.
Down payment is the difference between the sales price and maximum mortgage amount. The down payment may not be refundable if the purchaser fails to buy the property without good cause. If the purchaser wants the down payment to be refundable, he should insert a clause in the agreement of sale specifying the conditions under which the deposit will be refunded, if the agreement does not already contain such clause. If the seller cannot deliver good title, the agreement of sale usually requires the seller to return the down payment and to pay interest and expenses incurred by the purchaser.
Due-on-sale clause
A type of acceleration clause that gives a lenders the right to demand full repayment of a loan if the property is transffered or sold without permission. All mortgages have a due-on-sale clause to prevent buyers from taking over a seller’s existing mortgages. Because the existing mortgage may have a lower interest rate than current market, and the borrower may not be qualified to make payments.
Earnest
Money The deposit money given to the seller or his
agent by the potential buyer
upon the signing of the agreement of sale to show that he is serious
about buying the house. If the sale goes through, the earnest money
is applied against the down payment. If the sale does not go through,
the earnest money will be forfeited or lost unless the binder or
offer to purchase expressly provides that it is refundable.
Easement Rights A right-of-way granted to a person or company authorizing access to or over the owner's land. An electric company obtaining a right-of-way across private property is a common example.
Encroachment
An obstruction, building, or part of a building that intrudes
beyond a legal
boundary onto neighboring private or public land, or a building extending
beyond the building line.
Encumbrance A legal right or interest in land that affects a good or clear title, and diminishes the land's value. It can take numerous forms, such as zoning ordinances, easement rights, claims, mortgages, liens, charges, pending legal action, unpaid taxes, or restrictive convenience. An encumbrance does not legally prevent transfer of the property to another. A title search is all that is usually done to reveal the existence of such encumbrances, and it is up to the buyer to determine whether he wants to purchase with the encumbrance, or what can be done to remove it.
Equity
The value of a homeowner's unencumbered interest in real
estate. Equity is
computed by subtracting from the property's fair market value the total
of the unpaid mortgage balance and any outstanding liens or other debts
against the property. A homeowner's equity increases as he pays off
his mortgage or as the property appreciates in value. When the mortgage
and all other debts against the property are paid in full the homeowner
has 100% equity in his property.
Escrow Funds paid by one party to another (the escrow agent) to hold until the occurrence of a specified event, after which the funds are released to a designated individual. In FHA mortgage transactions an escrow account usually refers to the funds a mortgagor pays the lender at the time of the periodic mortgage payments. The money is held in a trust fund, provided by the lender for the buyer. Such funds should be adequate to cover yearly anticipated expenditures for mortgage insurance premiums, taxes, hazard insurance premiums, and special assessments.
Fair Credit Reporting Act A federal consumer protection regulation that governs the disclosure of credit information and regulates the credit laws and credit bureaus.
Fair market value Is what an asset is worth in the market, determined by the highest price a buyer would pay and the lowest price a seller would accept to sell.
Fannie Mae A publicly traded semi government agency that pursuant to a Federal charter,purchases mortgages from lenders and maintains the liquidity in the mortgage market.
Federal Housing Administration An agency of the U.S. Department of Housing and Urban Development. The FHA insures residential loans made by private lenders. The FHA monitors the standards for construction and underwriting but itself does not lend money or construct houses.
FHA mortgage FHA insures mortgages made by conventional lenders that allow a low down payment for any borrower who meets specified guidelines.
Fixed rate mortgage A type of mortgage that has a constant interest rate that does not vary during the life of the loan.
Foreclosure A legal term applied to any of the various methods of enforcing payment of the debt secured by a mortgage, or deed of trust, by taking and selling the mortgaged property, and depriving the mortgagor of possession.
Freddie Mac A publicly traded company which pursuant to a Federal charter, purchases mortgages from lenders and maintains mortgage market liquidity.
General Warranty Deed A deed which conveys not only all the grantor's interests in and title to the property to the grantee, but also warrants that if the title is defective or has a "cloud" on it (such as mortgage claims, tax liens, title claims, judgments, or mechanic's liens against it) the grantee may hold the grantor liable.
Government mortgage Mortgage that is insured by the the Federal government like VA, FHA, and RHS mortgages.
Grantee
That party in the deed who is the buyer or recipient.
Grantor That party in the deed who is the seller or giver.
Hazard Insurance Protects against damages caused to property by fire, windstorms, and other common hazards.
Home equity loan A type of mortgage where a certain percentage of equity is borrowed.Usually a second loan with flexible terms.
Homeowner's insurance A combination of hazard and personal liability insurance policies for a residence and its contents.
Housing expense ratio Housing expenses divided by the gross monthly income.
HUD U.S. Department of Housing and Urban Development. Office of Housing/Federal Housing Administration within HUD insures home mortgage loans made by lenders and sets minimum standards for such homes.
HUD-1
statement The closing
statement or the settlement statement that provides itemized details related to
a specific real estate transaction such as the fees paid by the seller and the
buyer for a transaction.
Initial interest rate The starting interest rate used for an adjustable mortgage.
Interest A charge paid for borrowing money. (See mortgage note)
IRA (Individual Retirement Account) A type of retirement account that allows individuals to contribute tax deferred contributions to their retirement fund.
Judicial foreclosure
If a deed of trust or mortgage doesn’t have a power of sale clause, the lender uses court action to foreclose on the property. Judicial foreclosure varies from state to state.
Judgement A debt, evidenced by a decree of a court, which becomes a lien against assets.
Joint tenancy Co-ownership that allows each party equal interest and equal rights in a property.
Jumbo mortgage A loan that exceeds the maximum loan of $252,700.The cost of obtaining a jumbo mortgage is generally higher than the cost of obtaining a conforming mortgage.
LIBOR London Inter-bank Offered Rates. An index used to establish the interest rates of adjustable rate mortgages (ARM). This is the interest rate at which the rated banks offer to lend to one another in eurodollars. LIBOR is quoted daily in the Wall Street Journal's Money section.
Lien A claim by one person on the property of another as security for money owed. Such claims may include obligations not met or satisfied, judgments, unpaid taxes, materials, or labor. (See also special lien.)
Liabilities An individual's or company's financial obligations to others.Liabilities can be short-term or long-term (longer than five years).
Lifetime payment cap The maximum payment amount that an adjustable rate mortgage can increase or decrease during the loan term.
Lifetime rate cap The maximum amount the interest rate can increase of decrease over the loan term.
Loan A sum of money that is borrowed for a specified period of time under certain terms and conditions.
Loan origination The initial process of starting a loan that a lender or a broker initiates.
Loan to Value Ratio (LTV) Ratio of the loan amount divided by property's value.
Lock-in Guarantee by a lender that a specific interest rate will be avaiable to the borrower during a certain time period..
Marketable
Title A title that is free and clear of objectionable
liens, clouds, or other title
defects. A title which enables an owner to sell his property freely
to others and which others will accept without objection.
Mortgage A lien or claim against real property given by the buyer to the lender as security for money borrowed. Under government-insured or loan-guarantee provisions, the payments may include escrow amounts covering taxes, hazard insurance, water charges, and special assessments. Mortgages generally run from 10 to 30 years, during which the loan is to be paid off.
Mortgage banker A individual or company that originates mortgages from its own funds and sells in the secondary market.
Mortgage broker An individual or company, who for a fee, bring borrowers and lenders together to originate mortgages.
Mortgage Commitment A written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house.
Mortgage insurance A type of insurance that protects the lender against the borrower's default. Mortgage insurance can cover a portion of the loan amount.
Mortgage
Insurance Premium The payment made by a borrower
to the lender for transmittal to HUD to help
defray the cost of the FHA mortgage insurance program and to provide
a reserve fund to protect lenders against loss in insured mortgage
transactions. In FHA insured mortgages this represents an annual
rate of one-half of one percent paid by the mortgagor on a monthly
basis.
Mortgage
Note A written agreement to repay a loan. The agreement
is secured by a mortgage,
serves as proof of an indebtedness, and states the manner in which
it shall be paid. The note states the actual amount of the debt that
the mortgage secures and renders the mortgagor personally responsible
for repayment.
Mortgage
(Open-End) A mortgage with a provision that permits
borrowing additional money in the
future without refinancing the loan or paying additional financing charges.
Open-end provisions often limit such borrowing to no more than would
raise the balance to the original loan figure.
Mortgagee
The lender in a mortgage agreement.
Mortgagor The borrower in a mortgage agreement.
Negative amortization When a monthly mortgage payment does not covers the entire principle and interest due, the amount of the shortfall is added to the remaining principle balance to create a "negative" amortization and the principle balance increases.
Origination fee A loan fee paid to the mortgage lender or broker.The fees are based on "points".
Piggy back loan
A second home loan, usually up to 15% of the property’s purchase value intended to avoid Private Mortgage Insurance.
PITI Short for Principal, Interest, Taxes, and Insurance.
Plat Map A map or chart of a lot, subdivision or community drawn by a surveyor showing boundary lines, buildings, improvements on the land, and easements.
Point A point is one percent of the loan amount.
PMI Private Mortgage Insurance. Insurance required by the lender to cover risk of loss.PMI is generally required by lenders when the loan to value is greater than 80 percent.
Points Sometimes called "discount points." A point is one percent of the amount of the mortgage loan. For example, if a loan is for $25,000, one point is $250. Points are charged by a lender to raise the yield on his loan at a time when money is tight, interest rates are high, and there is a legal limit to the interest rate that can be charged on a mortgage. Buyers are prohibited from paying points on HUD or Veterans' Administration guaranteed loans (sellers can pay, however). On a conventional mortgage, points may be paid by either buyer or seller or split between them.
Pre-approval The process of getting a conditional loan approval based on credit. Final approval is subject to the property's certified appraisal and verification of income documentation.
Prepayment
Payment of mortgage loan, or part of it, before due date.
Mortgage agreements
often restrict the right of prepayment either by limiting the amount
that can be prepaid in any one year or charging a penalty for prepayment.
The Federal Housing Administration does not permit such restrictions
in FHA insured mortgages.
Pre-qualification The process of determining how much a borrower will be eligible to borrow before he or she applies for a loan.
Principal The basic element of the loan as distinguished from interest and mortgage insurance premium. In other words, principal is the amount upon which interest is paid.
Purchase agreement The contract between a borrower and a seller stating the conditions and terms of the property sale.
Planned Unit Development (PUD)
Housing project that has five or more individual residences with commonly shared areas like the grounds and swimming pool. Its not a condominum but you pay home owner’s association dues. PUDs are generally a suburban phenomena.
Qualifying ratios Mathematical calculations used to determine if a borrower can qualify for a mortgage. Usually, lender's use two types of qualifying ratios. The first ratio is the borrower's current monthly debts divided by gross monthly income. The second ratio is the borrower's total debt (including the new house payment and related housing expenses) divided by the monthly gross income.
Quitclaim Deed A deed which transfers whatever interest the maker of the deed may have in the particular parcel of land. A quitclaim deed is often given to clear the title when the grantor's interest in a property is questionable. By accepting such a deed the buyer assumes all the risks. Such a deed makes no warranties as to the title, but simply transfers to the buyer whatever interest the grantor has. (See deed.)
Real property
The land and its use above and below and all the permanent fixtures attached to it is known as real property. For example your home,yard,trees, shrubs, and all fixtures like plumbing, pipes etc.Real property can be transffered only with lawful permission.
Rate lock A written commitment from the lender to the borrower stating a specific interest rate for a set period of time.
Realtor A designation used for a real estate broker or associate who is affiliated with the National Association of Realtors.
Refinancing The process of the same mortgagor paying off one loan with the proceeds from another loan.
Real Estate Broker A middle man or agent who buys and sells real estate for a company, firm, or individual on a commission basis. The broker does not have title to the property, but generally represents the owner.
Regulation Z
Truth-in-lending act. A federal law that requires lenders to give borrowers the annual percentage rate (APR). The APR helps borrowers compare loans since loans have interest rates and costs.The higher the APR the higher the cost of the loan. The APR is not an end in all and not a fool proof method,since lenders differ in costs and fees included in calculating the APR.
Restrictive Covenants Private restrictions limiting the use of real property. Restrictive covenants are created by deed and may "run with the land," binding all subsequent purchasers of the land, or may be "personal" and binding only between the original seller and buyer. The determination whether a covenant runs with the land or is personal is governed by the language of the covenant, the intent of the parties, and the law in the State where the land is situated. Restrictive covenants that run with the land are encumbrances and may affect the value and marketability of title. Restrictive covenants may limit the density of buildings per acre, regulate size, style or price range of buildings to be erected, or prevent particular businesses from operating or minority groups from owning or occupying homes in a given area. (This latter discriminatory covenant is unconstitutional and has been declared unenforceable by the U.S. Supreme Court.)
Reverse mortgage
A loan designed for home owners who can utilize a home’s equity and the mortgages are usually paid off.
Rural Housing Service (RHS) An agency within the U.S. Department of Agriculture, that provides financing to farmers and other qualified borrowers for buying property in rural areas of the U.S. The RHS sets eligibility guidelines but is not a lender.
Sales
Agreement See Agreement Of Sale.
Second Mortgage A mortgage that subordinates to the first mortgage.
Security The property that is pledged as collateral for a "secured" loan.
Settlement The final meeting where the real property transaction is "closed" or "settled" by an attorney or a settlement agent.
Special
Assessments A special tax imposed on property, individual
lots or all property in the
immediate area, for road construction, sidewalks, sewers, street lights,
etc.
Special
Lien A lien that binds a specified piece of property,
unlike a general lien, which
is levied against all one's assets. It creates a right to retain something
of value belonging to another person as compensation for labor,
material, or money expended in that person's behalf. In some localities
it is called "particular" lien or "specific" lien. (See
lien.)
Special
Warranty Deed A deed in which the grantor conveys
title to the grantee and agrees to protect
the grantee against title defects or claims asserted by the grantor
and those persons whose right to assert a claim against the title
arose during the period the grantor held title to the property. In a
special warranty deed the grantor guarantees to the grantee that he has
done nothing during the time he held title to the property which has,
or which might in the future, impair the grantee's title.
State
Stamps See Documentary Stamps
Survey A map or plat made by a licensed surveyor showing the results of measuring the land with its elevations, improvements, boundaries, and its relationship to surrounding tracts of land. A survey is often required by the lender to assure him that a building is actually sited on the land according to its legal description.
Sweat equity
A type of program that gives a prospective buyers to earn part or all of the down payment in exchange labor performed to build the home.For example Habitat for Humanity a non-profit organization that provides low income families assistance in down payment.
Tax As applied to real estate, an enforced charge imposed on persons, property or income, to be used to support the State. The governing body in turn utilizes the funds in the best interest of the general public.
Title
As generally used, the rights of ownership and possession
of particular property.
In real estate usage, title may refer to the instruments or documents
by which a right of ownership is established (title documents),
or it may refer to the ownership interest one has in the real
estate.
Title
Insurance Protects lenders or homeowners against
loss of their interest in property
due to legal defects in title. Title insurance may be issued to a
"mortgagee's title policy." Insurance benefits will be paid only to
the "named
insured" in the title policy, so it is important that an owner
purchase an "owner's title policy", if he desires the protection
of title insurance.
Title Search or Examination A check of the title records, generally at the local courthouse, to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue special assessments, or other claims or outstanding restrictive convenants filed in the record, which would adversely affect the marketability or value of title.
Transfer
of ownership Any means by which the ownership of the real
estate changes hands.
Trustee A party who is given legal responsibility to hold property in the best interest of or "for the benefit of" another. The trustee is one placed in a position of responsibility for another, a responsibility enforceable in a court of law. (See deed of trust.)
Underwriting Underwriting is the risk analysis of the borrower's credit and the value of the property.
Unsecured loan A loan that is not requires collateral or real property as security.
VA mortgage Mortgage guaranteed by the Department of Veterans Affairs (VA).
Zoning Ordinances The acts of an authorized local government establishing building codes, and setting forth regulations for property land usage.