Mortgage Terminology

Fair Isaac - "Founded in 1956 by engineer Bill Fair and mathematician Earl Isaac, Fair Isaac Corporation NYSE: FIC provides consulting services and decision management systems ... They developed the FICO scores, a measure of credit risk, that are the most used credit scores in the world. FICO scores are available through all of the major consumer reporting agencies in the United States and Canada: Equifax, Experian and TransUnion. (FICO is a registered trademark of Fair Isaac Corporation).
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Freddie Mac - "The Federal Home Loan Mortgage Corporation ("Freddie Mac") NYSE: FRE is a stockholder-owned, publicly-traded company chartered by the United States federal government in 1970 to purchase mortgages and ..." Read more

Home Equity Loan (HEL) -"is a type of loan in which the borrower uses the equity in his home as collateral. These loans are sometimes useful for families to help finance major home repairs, medical bills or college educations". Read more

"Home insurance, or homeowners insurance, is an insurance policy that combines various personal insurance protections which can include losses occuring to ones home, its contents, loss of its use (additional living expenses), loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home" Read more

"A Jumbo Mortgage is a mortgage with a loan amount above conventional loan limits. Jumbo Mortgages apply when agency (FNMA and FHLMC) limits don't cover the full loan amount. Fannie Mae (FNMA) and Freddie Mac (FHLMC) are large agencies that purchase the bulk of residential mortgages in the U.S. " Read more

"Loan to Value (LTV) is a mathematical calculation which expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. The resulting numerical calculation is commonly refered to as the Loan to Value ratio." Read more

"Combined Loan To Value (ratio) (CLTV) is the proportion of loans (secured by a property) in relation to its value". Combined Loan To Value (ratio) (CLTV) is the proportion of loans (secured by a property) in relation to its value." Read more

"No Income No Asset (NINA) is one of many Documentation Types which lenders may allow when underwriting a mortgage. NINA doc types allow low-risk borrowers with excellent credit and low Loan to Value ratios to qualify for a mortgage without having to document their income or show any type of liquid assets in reserve. " Read more

No Documentation (No Doc)- is a term used to describe a loan program that does not require evidence of proof of income earned or assets held by the borrower.

"Manufactured housing (known in some countries, including the United Kingdom, as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use". Read more

Mortgage Insurance - "An insurance policy designed to protect the Mortgagee (lender) from any default by Mortgagor (borrower). Used commonly in loans with a Loan-to-value over 80%, and employed in the event of foreclosure and repossession." Read more

Quitclaim deed (QCD) - "is a term used in property law to describe a document by which a person disclaims any interest the grantor might have in a piece of real property, and passes that claim to another person (the grantee)". Read more

Real estate appraisal - "is a service performed, by an appraiser, that develops an opinion of value based upon the highest and best use of real property". Read more

Second mortgage - "is a secured loan (or mortgage) that is subordinate to another loan against the same property. More specifically, the second loan in sequence". Read more

Secondary mortgage market -"The market where lenders and investors buy and sell existing mortgages and MBS securities". Read more

Deed - "is a legal instrument used to grant a right. The deed is best known as the method of transferring title to real estate from one person to another. However, by the general definition, powers of attorney, commissions, patents, and even diplomas conferring academic degrees are also deeds". Read more

pre-qualification -" is a term of art in retail finance, and means that a loan officer has taken some information from the borrower, and made a tentative decision, but not verified any of it".
pre-approval- "Has two meanings". Read more

VA loan - "is a mortgage loan in the United States guaranteed by the Veterans Administration. The loan may be issued by qualified lenders". Read more

FHA loan - " is a mortgage loan in the United States insured by the Federal Housing Administration. The loan may be issued by federally-qualified lenders". Read more

Commercial lenders - "offers loans backed by hard collateral. In most cases this is real estate, but it can also include factoring, non-conforming assets, or other sources of collateral". Read more

mechanics lien - "is a hold on real property for the benefit of someone whose work or property improves the property. It is called by various names, including materialman's lien, supplier's lien, laborer's lien and others". Read more

Refinancing - "refers to applying for a secured loan intended to replace an existing loan secured by the same assets. The most common consumer refinancing is for a home mortgage". Read more

eMortgages - " are electronic mortgages made legally enforceable by Electronic Signatures in Global and National Commerce Act and the Uniform Electronic Transactions Act". Read more