Reversing the securitization process by converting a security back into individual loans. See Desecuritization: Value There For the Taking

Same as Escrow

The array of laws and regulations dictating the information that must be disclosed to mortgage borrowers, and the method and timing of disclosure. See Mandatory Mortgage Disclosure

Proliferation in the number of loan, borrower and property characteristics used by lenders to set mortgage prices and underwriting requirements. Read What Mortgage Market Niche Are You In

A contractual provision that gives the lender the right to demand repayment of the entire loan balance in the event that the borrower violates one or more clauses in the note. 

Interest that is earned but not paid, adding to the amount owed. Same as Negative amortization

A mortgage on which the interest rate, after an initial period, can be changed by the lender. While ARMs in many countries abroad allow rate changes at the lender's discretion (&quot [..]

On an ARM, the time between changes in the interest rate or monthly payment. The rate adjustment interval is often displayed in x/y format, where "x" is the period until the firs [..]

A consumer's capacity to afford a house. Affordability is usually expressed in terms of the maximum price the consumer could pay for a house, and be approved for the mortgage required to p [..]

The legal requirement that one party in a relationship has a fiduciary obligation to the other. See Mortgage Brokers: Agents or Independent Contractors