GLOSSARY

This glossary is Alphabetical please choose your letter below.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

s

Satisfaction of Mortgage
The recordable instrument issued by the lender verifying full payment of a mortgage debt.

 

Scheduled Mortgage Payment
The amount the borrower is obliged to pay each period, including interest, principal, and mortgage insurance, under the terms of the mortgage contract.

 

Seasoning
See seasoned assets and seasoned mortgage.

 

Seasoned Assets
One or more type of assets can be shown to be under a customers control for a select period of time.

 

Seasoned Mortgage
A mortgage that payments have been made on. The longer the seasoning and payment history of the mortgage, the greater the likelihood it will be paid in the future.

 

Second Home ( Vacation Home/ Weekend Home )
A residence other than the borrower's primary residence which the borrower intends to occupy for a portion of each year. Must be suitable for year-round occupancy.

 

Second Mortgage
A mortgage made subsequent to another mortgage and subordinate to the first one. If the borrower does not make payments on the first mortgage, they can foreclose it and wipe out the interest of the second mortgage holder.

 

Secondary Mortgage Market
The place where primary mortgage lenders sell the mortgages they make to obtain more funds to originate more new loans. It provides liquidity for the lenders security.

 

Section 203(k) Loan Program
HUD's primary program for the rehabilitation and repair of single-family properties. A 203 (k) loan is a first mortgage that covers the costs of rehabilitation and purchase or refinance of an eligible property. The goals of the Section 203(k) loan program are community and neighborhood revitalization and expanded opportunities for homeownership for low-and moderate-income families. Also called Section 203k or 203k.

 

Security
A financial instrument showing ownership of equity (such as common stock), indebtedness (such as a debt security), a group of mortgages (such as MBS), or potential ownership (such as an option).

 

Security Instrument
Mortgage or deed of trust evidencing the pledge of real estate as collateral for the loan.

 

Security Interest
The interest of a creditor in the security collateralizing an investment.

 

Self-Employed Borrower
A borrower who must document income using tax returns rather than information provided by an employer.

 

Seller Contribution
Payment by the seller or any other interested party of some or all of the purchaser's usual closing costs. Investors and insurers sometimes limit the amount of seller contribution and require lenders to adjust the property's value if contributions exceed limitations. Undisclosed seller contributions (such as decorating allowances, appliances, or payment of moving expenses) are made to borrowers outside of closing and are also subject to investor and insurer restrictions.

 

Serious Delinquency
A single-family mortgage that is 90 days or more past due, or a multifamily mortgage that is two months or more past due.

 

Servicing
All the steps and operations a lender performs to keep a loan in good standing, such as collection of payments, payment of taxes insurance, property inspections and the like.

 

Servicing Agent
The party who services a loan, who may or may not be the lender who originated it.

 

Servicing Transfer
When one servicing agent is replaced by another.

 

Settlement / Settlement Costs
Another name for closing. See Closing / Closing Costs.

 

Shared Appreciation Mortgage
A mortgage on which the borrower gives up a share in future price appreciation in exchange for a lower interest rate and/or interest deferral.

 

Short Sale
An agreement between a mortgage borrower in distress and the lender that allows the borrower to sell the house and remit the proceeds to the lender. It is an alternative to foreclosure, or a deed in lieu of foreclosure.

 

Silent Second
A second mortgage offered at preferential (subsidized) terms to those who qualify. For example, a labor union may offer members who are first-time home buyers a silent second to finance closing costs or the down payment. The second might bear no interest, and might not be repayable until the first mortgage is repaid or the property is sold.

 

Simple Interest
Interest which is computed only on the principal balance.

 

Special Forbearance
A loss mitigation option where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments.

 

Standard Mortgage
An FRM with a single rate and level payments that fully amortizes over its term.

 

Stated Assets
A documentation requirement where the borrower discloses assets but such assets are not verified by the lender.

 

Stated Income
A documentation requirement where the lender verifies the source of the income but not the amount.

 

Streamlined Refinancing
Refinancing that omits some of the standard risk control measures, and is therefore quicker and less costly.

 

Subordinate
To place in a rank of lesser importance or to make one claim secondary to another.

 

Subordinate Financing
A second mortgage on the property which is not paid off when a new loan is taken out. The second mortgage lender must allow subordination of the second to the new first mortgage.

 

Subordination Policy
The policy of a second mortgage lender for allowing a borrower to refinance the first mortgage while leaving the second in place.

 

Sub-prime Borrower
A borrower with poor credit. Such borrowers pay more than prime borrowers, and are sometimes taken advantage of.

 

Sub-prime Lender
A lender who specializes in lending to borrowers consided sub-prime due to lower credit scores .

 

Survey
A measure of land, land prepared by a registered land surveyor, showing the location of the land with reference to known points, its dimensions and the location and dimensions of any buildings.

 

Stockholders Equity
Also called shareholders equity. The sum of proceeds from the issuance of stock and retained earnings less amounts paid to repurchase common shares.

 

Stripped MBS (SMBS)
Securities created by "stripping" or separating the principal and interest payments from the underlying pool of mortgages into two classes of securities, with each receiving a different proportion of the principal and interest payments.

 

Sweat Equity
Equity created by a purchasers work on a property purchased.

 

Swing loan
See bridge loan.