1003

The form number assigned by Fannie Mae and used by Mortgage Computer when referring to the Uniform Residential Loan Application.

APR

Annual Percentage Rate

ARM

An Adjustable Rate Mortgage

Back Office

This is a term used by Mortgage Computer to describe that part of Mortgage Office Software. Back Office is all the features after the loan application has been submitted to the construction of property through the loan payoff. The end-to-end software.

Broker

A licensed real estate broker. A broker is not the same as a real estate salesman.

Central Index File

Every loan entered into Mortgage Office Software, no matter which package is used, is stored in the Central Index File. The Central Index File stores the following information: Tax ID/Social Security Number, if the loan has a co-borrower, borrower's name, which Mortgage Office package the information is coming from, date of origin, account number, and the date the loan was removed from that program. This is a valuable tool for companies offering one-time loans to borrowers. Names can change, but the Social Security Number does not.

Construction

A software program designed and offered by Mortgage Computer to disburse construction loan proceeds. This program also includes disbursing borrower funds.

The program is designed for a cost breakdown, disbursements by craft (line item), stages, percentage of completion, as requested, or at completion. The program can handle home and commercial construction loans.

CU

Custodial checking account.

Dealer

A term used in Servicing to indicate to whom funds from an escrow account will be disbursed, i.e., Tax Dealer, Insurance Dealer, etc.

DU

This is Fannie Mae's abbreviation for the Desktop Underwriter automatic underwriting program.

DU3.2 Format

Fannie Mae’s format to import/export the 1003 loan application data to/from the Loan Origination Software (LOS).

Escrow

Escrow in some states is called Impound or Reserves. The term Escrow, as used by Mortgage Computer, indicates funds from the borrower to be held in "Escrow" for payment of taxes, insurance, etc., and deposited into a trust account.

Dictionary meaning: A formal contract or deed which does not come into effect until some specified condition has been filled. Until that time, it is held by a third person in trust as an “escrow.”

Escrow Agent/Company

A person or company to whom formal contract, deeds, or funds are held until conditions have been filled.

Escrow Officer

An employee of an Escrow Company.

Front Office

This is used by Mortgage Computer to indicate those software packages where a l003 loan application originates. MC offers four options: RapidApp, RapidApp Pro, WebApp, and Loan Application.

Impound

In some states, this refers to Escrows. See Escrow for more information.

Investor

An investor is who owns the mortgage note and to whom funds for principal and interest will be paid. There will always be an investor. If the lender is a portfolio lender, they will still be the investor who owns the note.

License Number

The number usually assigned by the state to an appraiser, inspector, or contractor. This number is used in Processing and Construction.

LIFO

In accounting, last in first out.

Look Back

The number of days from the adjustment date on an ARM loan to determine what the interest rate will be on that date. This is used in Servicing

LP

Freddie Mac's abbreviation for the automatic Loan Prospector Underwriting program.

LPI

Last paid installment.

MIP

MIP means Mortgage Insurance Premium. This is the amount a borrower pays to insure the lender against loss. This is used on a loan amount that exceeds the acceptable loan-to-value ratio. MIP includes coverage by FHA (MMIP) or VA (MIP), or a private mortgage insurance company (PMI).

MISMO Format

The Mortgage Industry Standard Maintenance Organization (MISMO) format to transmit the 1003 loan application and application data to/from the Loan Origination Software (LOS) for the purpose of but not limited to automatic underwriting services, credit requests, and mortgage insurance.

P&I

Principal and interest.

Packet

Packet refers to "Forms Packet,” a group of forms bundled together to be printed at the same time.

PI&TI

Principal and interest and tax and insurance (escrow funds).

Processing

Feature of the Mortgage Office Software with all the documents necessary to approve a loan. This includes the real estate 1003 loan application, required verifications, credit report, appraisal, Good Faith Estimate, etc. This package is where the loan is underwritten and closing information is obtained and closing documents are prepared. A funding ledger is set up and disbursement checks printed. Utilize the secondary market to sell and keep the loan status current and updated. Many reports are available in this package. The loan can then be transferred to Servicing or Construction.

Product

Mortgage Computer refers to what products (loans) you are offering to borrowers. Loan Products are set up in Processing and describe the terms and conditions. Each product is automatically assigned a four-digit code number.

Profile

A term used in Construction to match a pre-set cost breakdown percentage to the cost breakdown presented by the builder or contractor.

RapidApp

A stand-alone PC-based software package offered by Mortgage Computer for a loan originator to take a real estate 1003 loan application in the field or in a remote office.

RapidApp Pro

All the features of RapidApp with the additional features to print documents and submit a loan to Desktop Underwriter or to Loan Prospector.

ScrolEx

A Mortgage Computer term where companies, banks, credit unions, appraisers, etc., can be set up with their name, address, etc. The operator can scroll through ScrolEx and find the specific name wanted and select the company without having to type in any data.

Serial Number

A term used in some states as the property tax identification number. MC refers to it as Tax ID. Used by MC as an identification of an escrow number.

Servicing

The Mortgage Office Software section that handles the loan payments, escrow funds, IRS reporting for interest paid, etc., until the loan is paid in full.

Settlement Agent

The person, other than the lender, who will close the loan and disburse loan funds.

Standard Fields

An area in Mortgage Office Maintenance where data that is constantly used can be entered. Data from the Standard Fields can automatically be set to populate fields in the Master Record of a loan.

T&I

Tax and insurance. Refers to escrow accounts.

Tax ID

In servicing of the loan, this is the tax number assigned by a city, county, or borough as the Tax Identification Number.

Tax Serial Number

Tax Serial Number, Serial Number, or Parcel Number refers to the assigned Tax Escrow Number.

UPB

Unpaid Principal Balance

WebApp

The feature for a lender to post to their Web site the program to complete a real estate 1003 loan application.

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