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of Date: The first day of the month and year of issuance of the PC
Pool.
Average Original Loan Size (AOLS): The Original AOLS reflects
the simple average of the origination amounts for the mortgages in the PC
Pool as of pool formation.
The Updated AOLS reflects the most recent simple average of the
origination amounts for all mortgages remaining in the PC Pool.
Component Adjustment Date: The next scheduled
adjustment date of a group of mortgages in the pool having the same
adjustment period, adjusted by adding one month to reflect the time of the
corresponding PC Coupon or Pass-Through Coupon adjustment.
Component Coupon: The weighted average of the mortgage coupons
of a group of mortgages in the pool having the same adjustment date, net
of gross fees.
Component Life Ceiling: The weighted average of the mortgage
lifetime ceilings of a group of mortgages in the pool having the same
adjustment date, net of gross fees (updated monthly).
Component Life Floor: The weighted average of the mortgage
lifetime floors of a group of mortgages in the pool having the same
adjustment date, net of gross fees (updated monthly).
Component Margin: The weighted average of the mortgage margins
of a group of mortgages in the pool having the same adjustment date, net
of gross fees.
Component UPB: The unpaid principal balance of a group of
mortgages in the pool having the same adjustment date.
Convertible: An ARM that is subject to convert into a fixed
Mortgage Coupon during a Conversion Period at the option of the borrower.
Coupon: The annual rate at which interest is passed through
monthly to a Holder of a PC, based on a 360-day year of twelve 30-day
months.
Current Loan Count: The number of mortgages secured by real
property located in a state calculated as of the end of the previous
month.
Current Loan Percentage: The percent of mortgages secured by
real property located in a state calculated as of the end of the previous
month.
Current UPB Amount: The unpaid principal balance of the related
mortgages secured by real property located in a state calculated as of the
end of the previous month.
Current UPB Percent: The percent of the current unpaid principal
balance of the related mortgages secured by real property located in a
state calculated as of the end of the previous month.
CUSIP Number: A unique nine-character alpha-numeric designation
assigned to each PC Pool.
Factor: A truncated seven-digit decimal calculated
by Freddie Mac. The pool Factor represents the aggregate unpaid principal
balance of the mortgages in the related PC Pool on the books and records
of Freddie Mac for a particular month stated as a fraction of the original
unpaid principal balance of the PC Pool.
Factor Date: The Date on which the corresponding Factor is first
effective. This will be the first of the month for all pools.
First Conversion Date: If the pool is convertible, this is the
earliest date on which a mortgagor of a mortgage in the pool may convert
the adjustable Mortgage Coupon into a fixed rate. This field is not always
available on convertible pools.
Index: The name of the index upon which an
adjustable rate PC adjusts.
Last Conversion Date: If the pool is convertible,
this is the latest date on which a mortgagor of a mortgage in the pool may
convert the adjustable Mortgage Coupon into a fixed rate. This field is
not always available on convertible pools.
Legend: A text field used as a means of disclosing additional
information on the PC Pool.
Life Ceiling Range High: The highest mortgage lifetime ceiling
on the Mortgages in the PC Pool as of pool formation as calculated by
Freddie Mac.
Life Ceiling Range Low: The lowest mortgage lifetime ceiling on
the Mortgages in the PC Pool as of pool formation as calculated by Freddie
Mac.
Life Floor Range High: The highest mortgage coupon lifetime
floor on the mortgages in each PC Pool as of pool formation.
Life Floor Range Low: The lowest mortgage coupon lifetime floor
on the mortgages in each PC Pool as of pool formation.
Lookback: The number of days from the mortgage coupon adjustment
to the publication of the index used in the mortgage coupon adjustment.
Maturity Date: (Gold PC) The first day of
the month in which the last monthly payment on the Gold PC is scheduled to
be made.
(Original, ARM, TPM, & Original Multifamily PC) The first day
of the month in which the last monthly payment in the latest maturing
Mortgage in the related PC Pool is scheduled to be made.
Mortgage Adjustment Period: The frequency with which the
mortgages adjust in each PC Pool.
Mortgage Margin Range High: The highest margin on the Mortgages
in the PC Pool as of pool formation.
Mortgage Margin Range Low: The lowest margin on the Mortgages in
the PC Pool as of pool formation.
Non-Convertible: An ARM that is not subject to
convert into a fixed Mortgage Coupon during a Conversion Period at the
option of the borrower.
Original Loan Count: The number of mortgages
secured by real property located in a state calculated as of pool
formation.
Original Loan Percentage: The percent of mortgages secured by
real property located in a state calculated as of pool formation.
Original Unpaid Principal Balance (UPB): The Aggregate UPB of
the related Mortgages in the PC Pool as reported by the seller at
delivery.
Original UPB Amount: The unpaid principal balance of the related
mortgages secured by real property located in a state calculated as of
pool formation.
Original UPB Percentage: The percent of the original unpaid
principal balance of the related mortgages secured by real property
located in a state calculated as of pool formation.
Original Weighted Average Mortgage Lifetime Ceiling: The
weighted average of the mortgage coupon lifetime ceilings of the Mortgages
in each PC Pool as of pool formation.
Original Weighted Average Mortgage Lifetime Floor: The weighted
average of the mortgage coupon lifetime floors of the mortgages in each PC
Pool as of pool formation.
Original Weighted Average Mortgage Margin: The weighted average
of the mortgage margins of the Mortgages in each PC Pool as of pool
formation.
Payment Cap: The maximum amount a borrower’s
payment can adjust during a payment adjustment period.
Payment Date: The day of the month on which Freddie Mac passes
through payments of principal and interest to holders. The 15th of each
month is a Payment Date unless the 15th is not a business day, in which
case the next succeeding business day is the payment date.
Payoff Date: The last payment date on which Freddie Mac passes
through payments of principal and interest to holders. The last payment
date will always fall on the 15th of the month unless the 15th is not a
business day, in which case the next succeeding business day is the
payment date.
PC Margin: The weighted average of the mortgage margins of the
mortgages in each PC pool, net of gross fees (updated monthly).
Periodic Rate Cap: The maximum amount a coupon rate can adjust
during an adjustment period.
Pool Number: A unique six-digit numeric or alpha-numeric
designation used to identify each PC Pool
Prepayment Penalty Factor: A truncated seven-digit decimal
calculated by Freddie Mac which represents the prepayment fee collected by
Freddie Mac. A Prepayment Fee Factor published in a particular month
indicates that a PC Pool has received and passed through prepayment fees
during the previous month.
Quartiles: Quartiles represent the range of each
data element. Quartiles are based on each 25th percentile of the PC
Pool’s most recent unpaid principal balance.
Quartile 1 represents the range from the lowest value of a data element to
the data element corresponding to the 25th percentile of the PC Pool’s
most recent unpaid principal balance.
Quartile 2 represents the range from the data element corresponding to the
25th percentile of the PC Pool’s most recent unpaid principal balance to
the data element corresponding to the 50th percentile of the PC Pool’s
most recent unpaid principal balance.
Quartile 3 represents the range from the data element corresponding to the
50th percentile of the PC Pool’s most recent unpaid principal balance to
the data element corresponding to the 75th percentile of the PC Pool’s
most recent unpaid principal balance.
Quartile 4 represents the range from the data element corresponding to the
75th percentile of the PC Pool’s most recent unpaid principal balance to
the highest data element.
Seller Name: (not available on all pools)
Identifies the entity that sold the mortgages in the PC Pool to Freddie
Mac. This may or may not be the servicer of the mortgages
State: A two-letter state abbreviation (United States plus
Puerto Rico and territories) used to indicate the distribution of the
mortgages in the pool.
1984 tax flag: If "Y", pool contains
loans originated prior to July 18, 1984 - non-US resident implications.
1985 tax flag: If "Y", pool contains loans originated
prior to September 27, 1985, premium tax implications .
1984 tax percentage If "Y", pool contains loans
originated prior to July 18, 1984 - non-US resident implications.
1985 tax percentage: If "Y", pool contains loans
originated prior to September 27, 1985, this field gives % of UPB.
Updated Longest Maturity Date (ULMD) The
Original ULMD reflects the latest final payment date of all mortgages in
the PC Pool at the time of pool formation.
The Updated ULMD reflect the latest final payment date for all mortgages
remaining in the PC Pool.
This information does not change the Final Payment Date of the PC Pool. A
date of 07/24/70 (Freddie Mac Charter Date) in the ULMD field indicates
that Freddie Mac could not calculate the ULMD for the PC Pool due to
insufficient data.
WAC Range High: The highest coupon on the Mortgages
in the PC Pool as of pool formation.
WAC Range Low: The lowest coupon on the Mortgages in the PC Pool
as of pool formation.
WARM Range High: The longest remaining term to maturity of any
Mortgage in the PC Pool as of pool formation as calculated by Freddie Mac.
WARM Range Low: The shortest remaining term to maturity of any
Mortgage in the PC Pool as of pool formation as calculated by Freddie Mac.
Weighted Average Coupon (WAC): The Original WAC reflects the
weighted average mortgage coupon for the PC Pool as of pool formation.
The Updated WAC reflects the most recent weighted average mortgage coupon
for all mortgages remaining in the PC Pool.
Weighted Average Loan Age (WALA): The Original WALA reflects the
weighted average of the number of months since the date of note
origination of the mortgages in the PC Pool as of pool formation.
The Updated WALA reflects the most recent weighted average of the number
of months since the date of note origination for all mortgages remaining
in the PC Pool.
Weighted Average Months to Adjust: The weighted average number
of months from the first of the current month to the next scheduled
adjustment dates of the Mortgages in the PC Pool, plus one month to
reflect the weighted average time to the related PC coupon adjustment
dates.
Weighted Average Mortgage Lifetime Ceiling: The weighted average
of the mortgage coupon lifetime ceilings of the mortgages in each pc pool,
net of gross fees (updated monthly).
Weighted Average Mortgage Lifetime Floor: The weighted average
of the mortgage coupon lifetime floors of the mortgages in each pc pool,
net of gross fees (updated monthly).
Weighted Average Original Loan Term (WAOLT): The Original WAOLT
reflects the weighted average of the number of monthly principal and
interest payments that the homeowner will make over the life of the
mortgage for all the mortgages in the PC Pool at the time of pool
formation.
The Updated WAOLT reflects the most recent weighted average of the number
of monthly principal and interest payments that the homeowner will make
over the life of the mortgage for all mortgages remaining in the PC Pool.
Weighted Average Remaining Maturity (WARM): The Original WARM
reflects the weighted average remaining maturity for the PC Pool and
reflects the weighted average number of remaining monthly payments payable
on the PC Pool after giving effect to full and partial unscheduled
principal payments as of pool formation. For PC Pools backed by
Balloon/Reset Mortgages, the WARM Field reflects the WATB (WEIGHTED
AVERAGE TERM TO BALLOON), which is the weighted average remaining number
of months to the stated maturity or balloon maturity date of the mortgages
in the PC Pool as of pool formation.
The Updated WARM reflects the most recent weighted average remaining
maturity for the PC Pool and reflects the weighted average number of
remaining monthly payments payable on the PC Pool after giving effect to
full and partial unscheduled principal payments. For PC Pools backed by
Balloon/Reset Mortgages, the WARM Field reflects the WATB (WEIGHTED
AVERAGE TERM TO BALLOON), which is the weighted average remaining number
of months to the stated maturity or balloon maturity date of the mortgages
in the PC Pool.
adjustable-rate
mortgage (ARM) - A mortgage that permits the lender to adjust its
interest rate periodically on the basis of changes in a specified index.
adjustment date - The date on which
the interest rate changes for an adjustable-rate mortgage (ARM).
adjustment period - The period that
elapses between the adjustment dates for an adjustable-rate mortgage
amortization - The gradual
repayment of a mortgage loan by installments.
amortization schedule - A timetable
for payment of a mortgage loan. An amortization schedule shows the amount
of each payment applied to interest and principal and shows the remaining
balance after each payment is made.
amortization term - The amount of
time required to amortize the mortgage loan. The amortization term is
expressed as a number of months. For example, for a 30-year fixed-rate
mortgage, the amortization term is 360
annual percentage rate (APR) - The
cost of a mortgage stated as a yearly rate; includes such items as
interest, mortgage insurance, and loan origination fee (points).
appraisal - A written analysis of
the estimated value of a property prepared by a qualified appraiser.
Contrast with home inspection.
appraised value - An opinion of a
property's fair market value, based on an appraiser's knowledge,
experience, and analysis of the property.
asset - Anything of monetary value
that is owned by a person. Assets include real property, personal
property, and enforceable claims against others (including bank accounts,
stocks, mutual funds, and so on).
assumable mortgage - A mortgage
that can be taken over ("assumed") by the buyer when a home is
sold.
balloon mortgage -
A mortgage that has level monthly payments that will amortize it over a
stated term but that provides for a lump sum payment to be due at the end
of an earlier specified term.
bankruptcy - A proceeding in a
federal court in which a debtor who owes more than his or her assets can
relieve the debts by transferring his or her assets to a trustee. Usually,
at least 2 years must elapse from the discharge of the bankruptcy before
lenders will consider making a loan to someone who had declared
bankruptcy.
beneficiary - The person designated
to receive the income from a trust, estate, or a deed of trust.
bill of sale - A written document
that transfers title to personal property.
bond - An interest-bearing
certificate of debt with a maturity date. An obligation of a government or
business corporation. A real estate bond is a written obligation usually
secured by a mortgage or a deed of trust.
bridge loan - A form of second
trust that is collateralized by the borrower's present home (which is
usually for sale) in a manner that allows the proceeds to be used for
closing on a new house before the present home is sold. Also known as
"swing loan."
broker - A person who, for a
commission or a fee, brings parties together and assists in negotiating
contracts between them.
cap - A provision
of an adjustable-rate mortgage (ARM) that limits how much the interest
rate or mortgage payments may increase or decrease. See lifetime payment
cap, lifetime rate cap, periodic payment cap, and periodic rate cap.
cash-out refinance - A refinance
transaction in which the amount of money received from the new loan
exceeds the total of the money needed to repay the existing first
mortgage, closing costs, points, and the amount required to satisfy any
outstanding subordinate mortgage liens. In other words, a refinance
transaction in which the borrower receives additional cash that can be
used for any purpose.
Certificate of Eligibility - A
document issued by the federal government certifying a veteran's
eligibility for a Department of Veterans Affairs (VA) mortgage.
certificate of title - A statement
provided by an abstract company, title company, or attorney stating that
the title to real estate is legally held by the current owner.
closing costs - Expenses (over and
above the price of the property) incurred by buyers and sellers in
transferring ownership of a property. Closing costs normally include an
origination fee, an attorney's fee, taxes, an amount placed in escrow, and
charges for obtaining title insurance and a survey. Closing costs
percentage will vary according to the area of the country; lenders or
Realtors® often provide estimates of closing costs to prospective home
buyers.
commission - The fee charged by a
broker or agent for negotiating a real estate or loan transaction. A
commission is generally a percentage of the price of the property or loan.
comparables - An abbreviation for
"comparable properties"; used for comparative purposes in the
appraisal process. Comparables are properties like the property under
consideration; they have reasonably the same size, location , and
amenities and have recently been sold. Comparables help the appraiser
determine the approximate fair market value of the subject property.
construction loan - A short-term,
interim loan for financing the cost of construction. The lender makes
payments to the builder at periodic intervals as the work progresses.
credit reporting agency (or bureau)
- An organization that prepares reports that are used by lenders to
determine a potential borrower's credit history. The agency obtains data
for these reports from a credit repository as well as from other sources.
conventional mortgage - A mortgage
that is not insured or guaranteed by the federal government. Contrast with
government mortgage.
convertibility clause - A provision
in some adjustable-rate mortgages (ARMs) that allows the borrower to
change the ARM to a fixed-rate mortgage at specified timeframes after loan
origination
convertible ARM - An
adjustable-rate mortgage (ARM) that can be converted to a fixed-rate
mortgage under specified conditions.
credit history - A record of an
individual's open and fully repaid debts. A credit history helps a lender
to determine whether a potential borrower has a history of repaying debts
in a timely manner.
credit report - A report of an
individual's credit history prepared by a credit bureau and used by a
lender in determining a loan applicant's creditworthiness. See merged
credit report.
deed of trust - The
document used in some states instead of a mortgage; title is conveyed to a
trustee.
Department of Veterans Affairs (VA)
- An agency of the federal government that guarantees residential
mortgages made to eligible veterans of the military services. The
guarantee protects the lender against loss and thus encourages lenders to
make mortgages to veterans.
discount points - See point.
earnest money deposit - A deposit
made by the potential home buyer to show that he or she is serious about
buying the house.
encumbrance -
Anything that affects or limits the fee simple title to a property, such
as mortgages, leases, easements, or restrictions.
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.
escrow - An item of value, money,
or documents deposited with a third party to be delivered upon the
fulfillment of a condition. For example, the deposit by a borrower with
the lender of funds to pay taxes and insurance premiums when they become
due, or the deposit of funds or documents with an attorney or escrow agent
to be disbursed upon the closing of a sale of real estate.
escrow account - The account in
which a mortgage servicer holds the borrower's escrow payments prior to
paying property expenses.
Fair Credit Reporting
Act - A consumer protection law that regulates the disclosure of
consumer credit reports by consumer/credit reporting agencies and
establishes procedures for correcting mistakes on one's credit record.
Fannie Mae - A congressionally
chartered, shareholder-owned company that is the nation's largest supplier
of home mortgage funds.
first mortgage - A mortgage that is
the primary lien against a property.
fixed-rate mortgage (FRM) - A
mortgage in which the interest rate does not change during the entire term
of the loan.
flood insurance - Insurance that
compensates for physical property damage resulting from flooding. It is
required for properties located in federally designated flood areas.
foreclosure - The legal process by
which a borrower in default under a mortgage is deprived of his or her
interest in the mortgaged property. This usually involves a forced sale of
the property at public auction with the proceeds of the sale being applied
to the mortgage debt.
fully amortized ARM - An
adjustable-rate mortgage (ARM) with a monthly payment that is sufficient
to amortize the remaining balance, at the interest accrual rate, over the
amortization term.
hazard insurance -
Insurance coverage that compensates for physical damage to a property from
fire, wind, vandalism, or other hazards.
HUD-1 statement - A document that
provides an itemized listing of the funds that are payable at closing.
Items that appear on the statement include real estate commissions, loan
fees, points, and initial escrow amounts. Each item on the statement is
represented by a separate number within a standardized numbering system.
The totals at the bottom of the HUD-1 statement define the seller's net
proceeds and the buyer's net payment at closing. The blank form for the
statement is published by the Department of Housing and Urban Development
(HUD). The HUD-1 statement is also known as the "closing
statement" or "settlement sheet."
index - A number
used to compute the interest rate for an adjustable-rate mortgage (ARM).
The index is generally a published number or percentage, such as the
average interest rate or yield on Treasury bills. A margin is added to the
index to determine the interest rate that will be charged on the ARM..
This interest rate is subject to any caps that are associated with the
mortgage.
in-file credit report - An
objective account, normally computer-generated, of credit and legal
information obtained from a credit repository.
interest - The fee charged for
borrowing money.
interest rate - The rate of
interest in effect for the monthly payment due.
judgment - A
decision made by a court of law. In judgments that require the repayment
of a debt, the court may place a lien against the debtor's real property
as collateral for the judgment's creditor.
jumbo loan - A loan that exceeds
Fannie Mae's legislated mortgage amount limits. Also called a non
conforming loan.
liabilities - A
person's financial obligations. Liabilities include long-term and
short-term debt, as well as any other amounts that are owed to others.
lien - A legal claim against a
property that must be paid off when the property is sold.
lifetime payment cap - For an
adjustable-rate mortgage (ARM), a limit on the amount that payments can
increase or decrease over the life of the mortgage. See cap.
lifetime rate cap - For an
adjustable-rate mortgage (ARM), a limit on the amount that the interest
rate can increase or decrease over the life of the loan. See cap.
line of credit - An agreement by a
commercial bank or other financial institution to extend credit up to a
certain amount for a certain time to a specified borrower.
liquid asset - A cash asset or an
asset that is easily converted into cash.
loan - A sum of borrowed money
(principal) that is generally repaid with interest.
loan origination - The process by
which a mortgage lender brings into existence a mortgage secured by real
property.
loan-to-value (LTV) percentage -
The relationship between the principal balance of the mortgage and the
appraised value (or sales price if it is lower) of the property. For
example, a $100,000 home with an $85,000 mortgage has a LTV percentage of
85 percent.
lock-in - A written agreement in
which the lender guarantees a specified interest rate if a mortgage goes
to closing within a set period of time. The lock-in also usually specifies
the number of points to be paid at closing.
lock-in period - The time period
during which the lender has guaranteed an interest rate to a borrower. See
lock-in.
margin - For an
adjustable-rate mortgage (ARM), the amount that is added to the index to
establish the interest rate on each adjustment date, subject to any
limitations on the interest rate change.
merged credit report - A credit
report that contains information from three credit repositories. When the
report is created, the information is compared for duplicate entries. Any
duplicates are combined to provide a summary of a your credit.
mortgage broker - An individual or
company that brings borrowers and lenders together for the purpose of loan
origination. Mortgage brokers typically require a fee or a commission for
their services.
mortgage insurance - A contract
that insures the lender against loss caused by a mortgagor's default on a
government mortgage or conventional mortgage. Mortgage insurance can be
issued by a private company or by a government agency such as the Veterans
Administration (VA). Depending on the type of mortgage insurance, the
insurance may cover a percentage of or virtually all of the mortgage loan.
See private mortgage insurance .
mortgage life insurance - A type of
term life insurance often bought by mortgagors. The amount of coverage
decreases as the principal balance declines. In the event that the
borrower dies while the policy is in force, the debt is automatically
satisfied by insurance proceeds.
no cash-out refinance
- A refinance transaction in which the new mortgage amount is limited to
the sum of the remaining balance of the existing first mortgage, closing
costs (including prepaid items), points, the amount required to satisfy
any mortgage liens that are more than one year old (if the borrower
chooses to satisfy them), and other funds for the borrower's use (as long
as the amount does not exceed 1 percent of the principal amount of the new
mortgage).
origination fee - A
fee paid to a lender for processing a loan application. The origination
fee is stated in the form of points. One point is 1 percent of the
mortgage amount.
periodic payment cap -
For an adjustable-rate mortgage (ARM), a limit on the amount that payments
can increase or decrease during any one adjustment period. See cap.
periodic rate cap - For an
adjustable-rate mortgage (ARM), a limit on the amount that the interest
rate can increase or decrease during any one adjustment period, regardless
of how high or low the index might be. See cap.
point - A one-time charge by the
lender for originating a loan. A point is 1 percent of the amount of the
mortgage.
power of attorney - A legal
document that authorizes another person to act on one's behalf. A power of
attorney can grant complete authority or can be limited to certain acts
and/or certain periods of time.
prepayment - Any amount paid to reduce the
principal balance of a loan before the due date. Payment in full on a
mortgage that may result from a sale of the property, the owner's decision
to pay off the loan in full, or a foreclosure. In each case, prepayment
means payment occurs before the loan has been fully amortized.
pre-qualification - The process of
determining how much money a prospective home buyer will be eligible to
borrow before he or she applies for a loan.
prime rate - The interest rate that
banks charge to their preferred customers. Changes in the prime rate
influence changes in other rates, including mortgage interest rates.
principal - The amount borrowed or
remaining unpaid. The part of the monthly payment that reduces the
remaining balance of a mortgage.
principal, interest, taxes, and
insurance (PITI) - The four components of a monthly mortgage payment.
Principal refers to the part of the monthly payment that reduces the
remaining balance of the mortgage. Interest is the fee charged for
borrowing money. Taxes and insurance refer to the amounts that are paid
into an escrow account each month for property taxes and mortgage and
hazard insurance.
private mortgage insurance (PMI) -
Mortgage insurance that is provided by a private mortgage insurance
company to protect lenders against loss if a borrower defaults. Most
lenders generally require MI for a loan with a loan-to-value (LTV)
percentage in excess of 80 percent.
purchase and sale agreement - A
written contract signed by the buyer and seller stating the terms and
conditions under which a property will be sold.
rate lock - A
commitment issued by a lender to a borrower or other mortgage originator
guaranteeing a specified interest rate for a specified period of time. See
lock-in.
second mortgage - A
mortgage that has a lien position subordinate to the first mortgage.
title - A legal
document evidencing a person's right to or ownership of a property.
title company - A company that
specializes in examining and insuring titles to real estate.
title insurance - Insurance that
protects the lender (lender's policy) or the buyer (owner's policy)
against loss arising from disputes over ownership of a property.
title search - A check of the title
records to ensure that the seller is the legal owner of the property and
that there are no liens or other claims outstanding.
Treasury index - An index that is
used to determine interest rate changes for certain adjustable-rate
mortgage (ARM) plans. It is based on the results of auctions that the U.S.
Treasury holds for its Treasury bills and securities or is derived from
the U.S. Treasury's daily yield curve, which is based on the closing
market bid yields on actively traded Treasury securities in the
over-the-counter market. See adjustable-rate mortgage (ARM).
Truth-in-Lending - A federal law
that requires lenders to fully disclose, in writing, the terms and
conditions of a mortgage, including the annual percentage rate (APR) and
other charges.
underwriting - The
process of evaluating a loan application to determine the risk involved
for the lender. Underwriting involves an analysis of the borrower's
creditworthiness and the quality of the property itself.
VA mortgage - A
mortgage that is guaranteed by the Department of Veterans Affairs (VA).
Also known as a government mortgage.
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