Archives: Glossary Terms

A notice in writing from a lending institution promising to make the loan in the future and also specifying its terms and conditions.

The private business whose principal function is to originate by bringing lender and borrower together for a fee, to acquires loans for the purpose of resale and to service mortgage loans sold to financial institutions.

The insurance that is available to mortgage lenders from Private Mortgage Insurance Companies (PMICs) such as MGIC that protects the lenders against possible financial loss.

A policy that guarantees the repayment of a loan in the event of the death or disability of the borrower.

(MIP) The amount the borrower pays for the insurance on an FHA loan.

A company or group of private investors that buys mortgages for investment purposes.

The statement on a form approved by the state which is required by law to be furnished by a mortgage loan broker to a prospective borrower of a statutorily-prescribed time before the borrower becomes obligated to complete the loan.

A lender or creditor who is the receiver of a mortgage and to whom a mortgagor gives a mortgage to secure a loan or the performance of an obligation.

A situation in which a lender upon foreclosure of the loan secured by the mortgage takes possession and control of the mortgaged property and collects any income produced until it is sold at a foreclosure sale. Example: Following nonpayment of debt service for a period of 6 months, Savings Bank filed for foreclosure of the loan. Fearing dam-ages to the property, Savings immediately took possession under an action of mortgagee in possession.

A title insurance policy issued to the lender. It protects the lender for the amount of the mortgage loan.