Mortgage
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
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Third-party Origination
When a lender uses another party to completely or partially originate, process,
underwrite, close, fund, or package the mortgages it plans to deliver to the
secondary mortgage market.
Title
A document that gives evidence of an individual's ownership of property.
Title Insurance
A policy, usually issued by a title insurance company, which insures a home buyer
against errors in the title search. The cost of the policy is usually a function
of the value of the property, and is often borne by the purchaser and/or seller.
Policies are also available to protect the lender's interests.
Title Search
An examination of municipal records to determine the legal ownership of property.
Usually is performed by a title company.
Total Expense Ratio
Total obligations as a percentage of gross monthly income including monthly housing
expenses plus other monthly debts.
Truth-In-Lending
A federal law requiring disclosure of the Annual Percentage Rate to home buyers
shortly after they apply for the loan. Also known as Regulation Z.
Two-Step Mortgage
A 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.
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