lien. The security need for property offered so you’re able to a lending company or other creditor which are used whether your loan was not paid predicated on concurred terms and conditions. Very first liens has actually very first turn to the property. Next and next liens support and so are reduced safe than just the original (i.e., they only get paid or no finance arrive pursuing the very first lien manager are completely paid).
loan modification, otherwise mod. A loss mitigation tool where in fact the lender changes the original terms of a mortgage throughout the unpaid borrower’s prefer therefore, the borrower normally restart and also make monthly premiums. Financing improvement have a tendency to treat losings and therefore are reduced to possess servicers and you may buyers than simply foreclosure, which happen to be cumbersome and you may expensive. Improvement is continue the definition of of the loan, slow down the interest, slow down the dominant (sometimes by way of prominent forgiveness otherwise prominent forbearance), otherwise a mixture of the 3.
mark-to-markets mortgage-to-worth ratio, otherwise MTMLTV. The fresh new unpaid dominant equilibrium off home financing split up by the property’s economy well worth. It actions exactly how much collateral (or bad guarantee) a debtor possess in the home.
mortgage originatorspanies which make mortgage loans in order to individuals. There’s two particular originators: (1) depositories, specifically banks, thrifts, and you will borrowing unions; and you will (2) nondepositories otherwise separate home loan bankers. Read More