Welcome to our Glossary of Terms.   Here you will find descriptions of terms used throughout our web site and terms common in the industry.

To help you locate a term, enter the first character or two of a term and press the 'Refresh' button. Or, just click on the handy alphabetical index to jump to that section of the glossary.

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default
Failure to make payments called for on a timely basis, or to comply with other requirements or covenants on a loan,. In the event of default, the governing instrument may give the lender the right to accelerate payments, take possession and receive rents, and startforeclosure.

Default for QAPR files (htm)
Name the drive and folder where you want QAPR files to be saved.


Default location for EXAMPLE files (htm)
Name the drive and folder where you want stored example files
to be saved.


Default location for EXCEL files (htm)
Name the drive and folder where you want Excel output files to
be saved.


Default location for STUDY files (htm)
Name the drive and folder where you want loan (study) files to
be saved.


default/repo insurance
Insurance insuring the lender against the borrower's default and/or the costs ofrepossessing the collateral. This insurance premium must always be included in the finance charge under Regulation Z.

Default/repo insurance (htm)
Enter the insurance premium. This insurance protects the lender
against possible default and/or costs of repossessing the collateral and is
always included in the finance charge.


Deferred
Check this box to enter deferred deposits/withdrawals.

Deferred (Deposits) (htm)
Check
this box to enter deferred deposits.


Deferred (Withdrawals) (htm)
Check this box to enter deferred withdrawal amounts.


Delete (htm)
Click to
delete the selected example.


delinquency
Failure to make loan payments when due.

Deposit Amount
The amount of the regular deposit.

Deposit Amount (htm)
The
amount of the regular deposit.


Deposits
Check this box to enter deposit amounts.

Deposits (htm)
Check
this box to enter deposit amounts.


Deposits Per Year
The number of deposit periods per year if the account includes regular deposits.

Deposits Per Year (htm)
The
number of deposit periods per year if the account includes regular deposits.


Description (htm)
Type
your request.


Developer Activation Password (htm)
Enter the password given to you by Math Corporation.


Developer Preview (htm)
This
screen displays the internal code information for the loan application and the
amortization schedule.

You can scroll through the pages, zoom in and out, and print
the report by using the icons on the toolbar.


differing frequency loan
A loan on which payments to principal and interest are paid at different frequencies. For example a loan could call for principal payments to be paid annually and interest payments to be paid monthly.

Differing Frequency No (htm)
Select if principal and interest payments will be made at the same
frequency.


Differing Frequency Yes (htm)
Select if principal and interest payments will be made at different
frequency.


Disclosed APR (htm)
Enter
the annual percentage rate (APR) as disclosed for this loan.


Disclosed Finance Charge
Enter the finance charges as disclosed for this loan.

disclosures - combined
Select to produce a disclosure statement that includes both the single level loan and the construction loan terms.

disclosures - separate
Select to produce individual disclosure statements for the single level loan and the construction loan terms.

Disclosures Combined (htm)
Select
to produce a disclosure statement that combines the construction and permanent
financing phases.


Disclosures Separate (htm)
Select
to produce individual disclosure statements for the construction and permanent
financing phases.


discount interest

discount ( or re-discount) rate
The rate at which Banks borrow from the Federal Reserve Bank.

Discount Rate Periods
The number of payments the initial discount rate is in effect.

discounted rate
A lower or "teaser" rate on a variable rate or adjustable rate mortgage for an early period inthe life of the loan. After this period is over the rate may rise.

Display "What's this" help
If you feel you don't need to see the "what's this" help buttons (the little question mark icons) you can turn them off on all pages by unchecking this box.

Display "What's this" help
If you feel you don't need to see the "what's this" help buttons (the little question mark icons) you can turn them off on all pages by unchecking this box.

Display Detail Schedule (htm)
Select to display the detailed amortization schedule.


Display Input Terms (htm)
Display
all of the loan terms above the amortization schedule.


Display Options: QAPR Combined Report (htm)
Enter the values for the QAPR Combined Report.


Display Options: Amortization (htm)
Select the display options for the amortization schedule.
Required fields are automatically included.


Display Options: Export to Excel (htm)
Select the display options when exporting a loan to Excel.
Choose whether non-display columns should be hidden or removed from the
resulting Excel file.


Display year end totals (htm)
Select to display year end totals on the report.


Document (htm)
Click to
select from the list of documents available for this loan application.


Documentation (htm)
This
screen displays the same information as the Truth In Lending Statement, but in
a slightly different format. Information includes the annual percentage rate
(APR), total finance charge, the amount financed, the total amount (including
principal and interest) that will be repaid by maturity, and the payment
schedule, including the total number of payments, payment amount, and payment
due dates.

You can scroll through the pages, zoom in and out, and print
the report by using the icons on the toolbar.


Down Payment
The amount of money you intend to spend on a down payment. Typically 20% of the loan.

down payment
Money paid by a buyer from his own funds, as opposed to that portion of the purchase price which is financed.

Draw Interest rate
Enter the interest rate which will be charged during the period when draws are being made on this loan. Interest Only the interest is paid during this period.

Draw Note Loan Screen (htm)
Enter the terms for a draw note, or a loan with multiple disbursements. You
must enter the interest rate, periods per year, term, loan amount, prepaids,
advance date, and date of first payment for each disbursement or error messages
display.

Click the Options and Variations button on the toolbar to
enter any variations.


draw notes
A loan arrangement where the proceeds are drawn in several stages.

Draw P/Y
Enter the number of periods per year during the draw period. Interest only is paid during this period with the repayment occuring after the draw period.

Draw Repay Method - Level Payment Loan (htm)
Select if the draw note will be repaid with a level
payment loan.


Draw Repay Method - Plus Interest Loan (htm)
Select if the draw note will be repaid with a plus
interest loan.


Draw Repayment Method - Level Payment Loan
.

Draw Repayment Method - Plus Interest Loan
.

Draw term
Enter the total number of interest only payments during the draw period.

draws
Money drawn under a multiple advance loan (draw note) or taken out of an escrow account in the case of a construction loan.

Draws Amount (htm)
Enter
the amount for this draw.


Draws Date (htm)
Enter the date when this amount will be drawn..

due-on-sale provision
A provision in a mortgage that gives the lender the option of demanding payment in full if the borrower sells the property that serves as security for the mortgage.

earnest money deposit
A deposit made by a home buyer to show that he or she is serious about buying the house.

Effective Rate Cap
The effective rate cap for the purposes of calculating the actual shared appreciation figure. This figure is ONLY used if there is shared appreciation (i.e. shared_appreciation > 0).

E-Mail Account (htm)
Enter
your e-mail address.


E-mail Math Corp Technical Support (icon) (htm)
Click to display the Technical Support Request
Form.


E-mail this message to (htm)
Enter the e-mail address of the person to whom you want to send this
message, or accept the default value. You should only change the default value
if you have been instructed to do so by someone from Math Corp.


encumbrance
A lien or anything else that affects or limits the fee simple title to a property, such asmortgages, leases, easements, or restrictions.

End of Month Flag
End of month flag. Y or N. This flag tells the engine whether the payment due dates are to fall at the end of the month or not. For example, if the first payment date is 6/30/2007, should the next payment fall on 7/30/2007 (N) or 7/31/2007 (Y)? If this field is set to Y, the engine makes this and all succeeding payments due on the last day of the month. If this field is set to N, the engine makes all of the payments due on, in this case, the 30th of the month.

End Page (htm)
Enter
the last page number of the range of pages to print.


Engine Output (htm)
Select
your default output option for the output preview screen.


Enhancement Report (htm)
Select
to submit a request for a program change.


Entire Commitment (htm)
Select
to charge interest on the entire construction loan amount, regardless of how
and when it is drawn.


Entire Schedule
Check this box and click the "Request Output" button to view the entire accrual schedule.

Equal Credit Opportunity Act (ECOA)
A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

equity
A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage.

Error Log (htm)
Displays
error messages caused by problems sending your e-mail.


escrow
An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of certain conditions. Deposits by borrowers of funds to pay taxes and insurance premiums when due are examples.

Escrow Amount
Enter the amount of this escrow payment.

Escrow Item
Select the escrow item that applies (mortgage insurance, city tax, property tax,…).

Escrow Item (htm)
Select
the desired escrow item from the list. If the item you want doesn't display,
type a new name over the current item.


escrow payment
The portion of a mortgagor's monthly payment that is held by the servicer to pay for taxes,hazard insurance, mortgage insurance, lease payments, and other items as they becomedue. Known as "impounds" or "reserves" in some states.

Escrow Tax/Insurance
Escrow Tax/Insurance

Escrow Use/Refund
This flag tells the engine whether the PMI renewal payments that are held in escrow will be used for the final payments in the case of a loan-to-value cutoff or refunded separately. If they are refunded separately, the term of the cutoff will not be credited by the number of months escrowed.

exact day
A regulation Z term describing the calculation of the exact number of days between two dates.

exact interest
Interest calculated on the exact number of days involved in a transaction.

examination of title
The report on the title of a property from the public records or an abstract of the title.

Existing Mortgage Balance
The balance remaining on the existing mortgage on the home. If there is no mortgage, this value is 0.

Exit (icon) (htm)
Select
to exit ZMath®.


Exponential (htm)
This
indicates if the deposits or withdrawals that are subject to an exponential
growth rate.


Export (htm)
Click to
export the worksheet with the specified settings.


extended Locks
Mortgage rate commitments which are for longer than the typical 12 to 30 day locks.

Fair Credit Reporting Act
A consumer protection law that regulates the disclosure of consumer credit reports byconsumer/credit reporting agencies and establishes procedures for correcting mistakes on one's credit record.

fair market value
The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept.

Fannie 97®
A financing option for a fixed-rate mortgage that offers home buyers a 3 percent downpayment loan with either a 25- or 30-year term. The mortgage features a loan-to-value(LTV) percentage of 97 percent, and is designed to expand homeownership opportunities for people with modest incomes. Borrowers must take a pre-purchase home-buyer educationsession to qualify for a Fannie 97 mortgage.

Fannie Mae (FNMA)
Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages. Over the past 30 years, Fannie Mae hasprovided nearly $2. 5 trillion of mortgage financing for over 30 million families

Fannie Mae's Community Home Buyer's ProgramSM
An income-based community lending model, under which mortgage insurers and Fannie Maeoffer flexible underwriting guidelines to increase a low- or moderate-income family's buyingpower and to decrease the total amount of cash needed to purchase a home. Borrowers who participate in this model are required to attend pre-purchase home-buyer educationsessions.

Federal Home Loan Mortgage Corporation (FHLMQ)
A quasi-governmental agency that purchases conventional mortgages in the secondary mortgage market from insured depository institutions and HUD approved mortgage bankers. It sells participation sales certificates secured by pools of conventional mortgage loans, their principal and interest guaranteed by the federal government through theFHLMC. It also sells Government National Mortgage Association bonds to raise funds to finance the purchase of mortgages. Popularly known as Freddie Mac.

Federal Housing Administration (FHA)
An agency of the U. S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing.

Federal National Mortgage Association (FNMA)
See Fannie Mae

fee simple
The most extensive interest in land that can be enjoyed. It is of perpetual duration.

Fees and Charges Worksheets (htm)
Enter the fees and charges which should always be included or
always be excluded from a loan calculation. Use the Real Estate Loan Special
Exclusions tab to enter fees and charges which should be excluded from all
mortgages. Totals display at the beginning of the screen.


FHA
A loan insured by the Federal Housing Administration (of HUD).

FHA mortgage
A government-backed mortgage loan supported by the US FHA and the Department of Housing and Urban Development (HUD).


More glossary items are available....
Please use the index or Click here to view the next set of items.

 

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