Mortgage Dictionary

Terminology, definitions, explanations, and documents for business professionals in the mortgage lending and mortgage risk management industries, as they are used on

Select the first letter of the term you want to find.
[ Lookup | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z ]


Abstract (of Title)
A historical summary of all the recorded transactions, to include transfer of ownership, that affects the title to the property being mortgaged. An attorney or title company reviews an abstract of title to determine if there are any problems, such as lien, that could affect the title to the property. All problems with the abstract are cleared before a title is issued. The abstract is one of many documents included and validated in the loan closing package.

See Mortgage Loan Outstanding Document Overview
Acceleration Clause
A provision in the mortgage that gives the lender the power to declare the loan immediately due and payable upon the violation of a specific loan provision, such as the sale of the property, or the failure to make loan payments on time.
Is a process in which the size of something gradually increases by the addition of smaller parts. In the mortgage industry the term accretion is used to describe a process where property increases in size or value as a result of forces in nature. Examples of natural forces that might cause accretion are lava flows, wind or water.
Adjustable Rate Mortgage (ARM)
An Adjustable Rate Mortgage (ARM) has an interest rate that will change over time. Typically, an ARM will start at a low interest rate and then change over time at scheduled intervals. The change in interest rate will correspond to the schedule, margin, index and rate increase caps associated with the ARM.

See Margin
Alternate Name (Borrower Alias)
In the mortgage industry borrower alternate name or alias information is collected in conjunction with borrower liabilities reported in Section VI. ASSETS AND LIABILITES of the Uniform Residential Loan Application (URLA).

The MISMO Mortgage Application v2.3.1 specification for electronic commerce supports the following borrower alternate name attributes under the BORROWER/_ALIAS node of the mortgage application transaction:
  • _FirstName
  • _LastName
  • MiddleName
  • AccountIdentifier
  • CreditorName

See Uniform Residential Loan Application (URLA)
See Mortgage Industry Standards Maintenance Organization (MISMO)
Alternative Documentation
A documentation type description normally used as a reference to Fannie Mae / Freddie Mac acceptable alternative standard verification forms, to include:
  • Certified copies of previous 2 years W-2s and a full months most recent computer generated pay stubs with YTD figures in lieu of a VOE.
  • Two (2) months most recent bank statements in lieu of a VOD.
  • Certified copies of past twelve (12) months canceled checks to evidence timely repayment of a mortgage, in lieu of a VOM.

A loan with Alternative Documentation represents, more or less, the same amount of credit risk as a loan with Full Documentation. As such, sellers typically group Full and Alternative (Full/Alt) documentation types together for qualification and pricing purposes.

See Documentation Type
See Full Documentation
See Mortgage Loan Documentation Type Overview

Attached (Property Type)
A property type where the primary dwelling for a single family home has at least one shared wall with the primary dwelling of another single family home.

See Detached
See Mortgage Loan Property Types
See Semi-Detached

See Townhouse or Terrace Home

Suggest A Term

Return to top

Terminology, definitions, terms, explanations, and documents for business professionals in the mortgage lending and mortgage risk management industries.