U
Underwriting In mortgage banking, the analysis of the risk involved in making a mortgage loan to determine whether the risk is acceptable to the lender. Underwriting involves the evaluation of the property as outlined in the appraisal report, and of the customer’s ability and willingness to repay the loan.
Uniform Settlement The HUD form must be used in conducting the loan settlement in
Statement (HUD-1) every related mortgage loan settlement transaction. As stipulated by RESPA regulations, the HUD form should be completed to indicate all charges to be paid by the customer and the seller in connection with a home mortgage loan transaction.
Uninsured Loan A loan with an LTV greater than 80% that does not have buyer-paid mortgage insurance. Also known as Self-Insured.
V
Valid Sufficient in law; effective. Having force, or binding force; legally sufficient and authorized by law.
Valuation The estimation of a property’s price through appraisal.
Vendee Purchaser, buyer
Vendor The seller of personal property or real property.
Verification An affidavit or other document which states that the matters set forth are true.
Vest To give right in property; denotes the manner in which title is held.
Vested Interest An interest that is fixed or determined.
Veteran’s A government agency that aids veterans of the United States
Administration (VA) Armed Forces in obtaining housing; its assistance takes the form of a partial guarantee or repayment to lenders in the event of customer default.
Void Having no legal effect; null.
Voluntary Lien A lien placed on a property by the act of, and with the consent of, an owner.
W
Waiver Act of releasing or abandoning a right or a privilege.
Warranty An assurance that certain defects do not exist; a guarantee.
Warranty Deed See Grant Deed.
Wholesale Table Wholesale Table Funding is a process which allows approved
Funding brokers to:
· Fund loans in their name using the bank’s funds; and
· Act in the capacity of lender as the loan documents are in the broker’s company name.
The bank is responsible for funding the loan. After the customer signs the closing documents, the broker assigns the loan to the bank by:
· Executing an assignment; and
· Endorsing the Note.
Wrap-Around A refinancing technique involving the creation of a second
Mortgage/Trust Deed mortgage, which includes the balance due on any existing mortgages, plus the amount of the new secondary or junior lien.
Y
Yield The interest earned by an investor on his investment (or bank on the money it has lent). Also called “return.”
Yield Rate The yield expressed as a percentage of the total investment. Also called “rate of return.”
Yield Spread Premium The broker’s income comes strictly from loan fees and, if
(YSP) applicable, negative pricing credits, referred to as “Yield Spread Premiums.”
Z
Zone The area set off by the proper authorities for specific use; subject to certain restriction or restraints.
Zoning Governmental regulations relating to the use of property. For example: single family zoning, multi-family zoning, or mixed use.
