Category: Mortgage industry of the United States

Loan origination

Loan origination is the process by qui a borrower Applies for a new loan , and a lender processes That application. (Or declining the application). For mortgages, there is a specific mortgage origination process. Loan servicingcovers everything after disbursing the funds until the loan is fully paid off. Loan origination is a specialized version of a new account opening for financial services organizations. Certain people and organizations specialize in…

Loan modification company

A loan modification company , also known as a mortgage modification company, is a business that helps homeowners modify the terms of their home loans or mortgages . When a mortgage is modified, the original terms of the home loan contract between a lender and a borrower are renegotiated and then altered, usually in the favor of the borrower….

Graduated payment mortgage loan

A graduated payment mortgage loan , often referred to as GPM, is a mortgage with low initial monthly payments which gradually increase over a specified time frame. These plans are mostly geared towards young people who can not afford large payments now, but can realistically expect to raise their incomes in the future. For a medical student who is just about…

Full documentation loan

In the United States , Full Documentation Loan refers to a loan where all income and assets are documented. Typically it is Referred to as a “full doc” loan in the mortgage industry and is a common kind of loan used for financing a home purchase. A list of the various types of loans can be found at Mortgage Loan Documentation ….

Floor loan

A floor loan refers to the minimum amount of money that a lender is willing to lend in order to enable the builder to begin the construction of a building that is to be occupied by tenants. The term “mortgage” means mortgages and mortgages . The rest of the loan is given to the builder on the achievement of certain milestones related to the sale…

FHA insured loan

An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan which is provided by an FHA-approved lender. FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. To obtain mortgage insurance from the Federal Housing Administration, an upfront mortgage insurance…

Due-on-sale clause

A due-on-sale clause is a clause in a loan or promissory notes That stipulates que le full balance of the loan due May be called Expired (repaid in full) upon sale or transfer of ownership of the property used to secure the notes. The lender has the right, but not the obligation, to call the note due in such a circumstance….