Mortgage Terms, Concepts and Definitions

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1. The difference between what is owed on a property and what it is worth.

2. In case the borrower defaults on the loan, the insurance that covers over 80% LTV.

3. An insurance policy that protects owners and lenders against undiscovered defects in chain of title.

4. Where the transaction takes place between the borrower and mortgage banker/broker.

5. Chance of loss or default on a loan to a lender.

6. Co-ownership of real property by husband and wife, with rights of survivorship.

7. Evidence of ownership.

8. Stage of the loan transaction when the deed and funds are exchanged.

9. The Latin words meaning mortgage.

10. Repayment of a debt in periodic installments of interest and principal.

11. Rights associated with ownership of waterfront property.

12. Investors from the capital markets buy and pool loans on the secondary market where these loans are sold as _______________.

13. The three-day cooling off period when refinancing a primary residence.

14. A legal document that pledges property as security for the repayment of a loan.

15. Legal instrument that conveys title to property upon acceptance by grantee.

16. Legal instrument in which a borrower transfers property to a trustee as security for a debt.

17. The service provider that collects and disburses the funds at closing.

18.Land and all the improvements permanently affixed to it.

19. Lenders who fund mortgage loans primarily through mortgage banker/brokers.

20. The cycle of the loan where the loan’s file is reviewed and approved.

21. The person who orders credit report, verification of employment and gathers together the complete loan file.

22. Rights to own inventions, chattel and land are...

23. The greatest type of ownership of real property that is most comprehensive.

24. Pledging real property without giving up possession.

25. To release claim or interest in a property with no warranties.

26. The three-party legal theory whereby the mortgagor conveys legal title until the debt is paid.

A. Risk



B. Dead Pledge



C. Riparian Rights


D. Real Estate


E. The Processor



F. Equity



G. Property Rights


H. Quit Claim Deed


I. Title Theory



J. Right of Rescission



K. Private Mortgage Insurance (PMI)



L. Primary Mortgage Market



M. Title Insurance


N. Underwriting


O. Title



P. Amortization


Q. Deed


R. Deed of Trust



S. Fee Simple


T. Hypothecation



U. Funding


V. Mortgage


W. Wholesale Lenders



X. The Settlement Agent


Y. Mortgage Backed Securities


Z. Tenancy by the Entirety