An SEC-recognized organization that verifies, posts, and delivers all transactions dealing with mortgage-backed securities. Post-trade comparisons, risk management, or changes in mortgage pools are part of these transactions.
A regularly scheduled amount owed that includes a portion of principal and interest paid by the home loan borrower to the lender. Real estate taxes and property insurance may be a part of the payment, if part of the loan agreement. The original loan amount is paid by the principal portion. The interest portion is paid to the lender.
A pool or mortgages that act as a security.
Mortgage borrower relief option to alter mortgage contract terms. Primarily for borrowers unable to make the mortgage payments under original mortgage contract terms. Refinancing or extending loan terms to reduce the monthly payment amount are the typical methods used.
As a part of a mortgage agreement this type of promissory note states the loan’s amount and duration, the applicable interest rate, and makes the signatory personally liable for full loan repayment according to the agreement’s terms.
Payout when a borrower gets more financing than is needed to pay off the project, home, or mortgaged asset. Due to stricter underwriting standards in banking it has been essentially eliminated for individual mortgages. This often occurred with larger building projects.
Calculate: the property investment’s value minus the remaining mortgage amount owed. Requires knowing the financing used to secure the asset, the general property value, and mortgage amount still owed.
Interest rate used a reference point. Par rates are necessary in determining the value of a mortgage servicing rights. A lender may not offer a rebate or demand discount points based on this reference point. A lender may pay another lender par value for an existing mortgage based on this reference point.
Within the mortgage originator’s pipeline home loans closings lost as a percentage. This percentage is an extremely important part of the mortgage lender’s overall efficiency. Fallout assumptions are used in the mortgage originators’ hedge ratios.
A security holding partial ownership within a pool of other partial mortgage owners. These other mortgages are owned by a federally insured mortgage holder, like Freddie Mac. Also known as pass-through security.