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

 

w

Warranty ( Warranties )
Written guarantees of the quality of a product and the promise to repair or replace defective parts free of charge.

 

Waive Escrow
Authorization by the lender for the borrower to pay taxes and insurance directly. This is in contrast to the standard procedure where the lender adds a charge to the monthly mortgage payment that is deposited in an escrow account, from which the lender pays the borrower?s taxes and insurance when they are due.

 

Wholesale Lender
A lender who provides loans through mortgage brokers or correspondents. The mortgage broker or correspondent initiates the transaction, takes the borrower's application, and processes the loan.

 

Workout Assumption
The assumption of a mortgage, with permission of the lender, from a borrower unable to continue making the payments.

 

Worst Case Scenario
The assumption that the index to which the rate on an ARM is tied rises to 100% in the second month and remains there.

 

Wrap Around Mortgage
A mortgage on a property that already has a mortgage, where the new lender assumes the payment obligation on the old mortgage. Wrap-around mortgages arise when the current market rate is above the rate on the existing mortgage, and home sellers are frequently the lender.