Glossary Flashcards
Alienation clause
Is a clause that protects the lender by preventing the borrower from assigning a debt to another person without the lenders approval.
Easement
The right to access a property for a specific purpose.
Red lining
The practice of denying or making unfavorable terms in a credit transaction, based on the demographic of a particular region.
Person
An individual, partnership, limited, liability, company, trust, or corporation.
Assets
Any item with measurable value.
Fee Splitting
The sharing of fees among settlement service providers.
Subordinate
Lower in rank, position, or priority.
Disparate
Different or incomparable.
Indemnification
Security against any loss or damage, and compensation or security, given to reimburse any loss or damage incurred.
Permanent Buy Down
The payment of discount points used to permanently reduce the interest rate paid on the mortgage.
Grantor
An individual or entity, such as the lender, that regularly extends closed end or open end credit.
Defeasance Clause
A clause in the mortgage that allows for reconveyance once the mortgage debt is paid in full. It also states that once a mortgagor pays off the mortgage the mortgagee no longer has any legal ties to the property.
Deed-in-Lieu
A deed given to the lender, to avoid foreclosure, and fulfill the obligation to repay the debt. This process does not allow the borrower to remain in the house, but helps avoid the cost time and effort associated with the foreclosure.
