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Mortgage Dictionary


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

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F

Fall Out Percentage
In the mortgage industry the fall out percentage is a percentage that measures the dollar volume of loans that a seller does not deliver versus the dollar volume of loans committed for delivery.

See Pull-through Rate
See Mortgage Industry Seller Pull-through Overview

Foreclosure (Repossession)
A legal process in which the lender forces a sale of real estate because the borrower has not met the terms of the mortgage. Typically, the terms of the mortgage that are not met is the mortgage payment.
See Default
FSBO
In the mortgage and real estate industries, FSBO is an acronym for "For Sale By Owner". A FSBO property is not listed with a real estate broker.
Full Documentation
A documentation type description normally used as a reference to Fannie Mae / Freddie Mac documentation requirements for a mortgage loan. Documentation includes a fully completed Verification of Employment (VOE), Verification of Deposit (VOD), and Verification of Mortgage (VOM) forms. A loan with Full Documentation represents the least amount of risk for an investor.

See Alternative Documentation
See Documentation Type
See Mortgage Loan Documentation Type Overview
Fund a.k.a. Loan Funding
1. To provide monies to complete a mortgage loan transaction.

2. A transaction in which an investor purchases the servicing rights for a mortgage loan on the secondary market.

Note: Many investors refer to the loan purchase transaction on the secondary market as funding a loan and even provide a report called a funding schedule to the seller; however, it is important to note that this is a misuse of the term "fund". The proper term for this type of transaction is a "purchase" and the corresponding report should be a purchase schedule.

See Mortgage Loan Funding Quality Overview
Funding Quality
In the mortgage industry investors track and report statistics for loans delivered for purchase by a seller. The results of these statistics measure a seller's ability to accurately deliver quality loan packages and is commonly referred to as the seller's Funding Quality.

See Mortgage Loan Funding Quality Overview

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