Agency
: A legal relationship in which someone (principal) hires someone else (agent) to represent them to a third party.

Adjustment Interval
For an adjustable rate mortgage, the time between changes in the interest rate charged. The most common adjustment intervals are one, three or five years.

ALTA
American Land Title Association - A national association of title insurance companies, abstractors and attorneys specializing in real property law. The association speaks for the title insurance and abstracting industry, creates title policy forms and establishes standard procedures.

Alternative Documentation
A substitute documentation process that allows lenders under certain circumstances to obtain documentation related to an applicant's income, employment, funds for closing and home loan payment history obtained directly from the applicant, rather than from his or her employer, bank or home loan servicer.    [TOP]

Amortization
Literally to "kill off" (root: mort) the outstanding balance of a loan by making equal payments on a regular schedule (usually monthly). The payments are structured so that the borrower pays both interest and principal with each equal payment.

Annual Percentage Rate (APR)
The interest rate which reflects the cost of a mortgage as a yearly rate. This rate is usually higher than the stated loan rate for the mortgage, because it takes into account points and other charges.

Applicable Requirements
All of the following: (i) all contractual obligations of the Correspondent or Originator (including those contractual obligations contained in the Manual (and/or in any of the other Contract Documents, in any agreement with any Insurer, or in any of the Mortgage Loan Documents)) for which the Correspondent or Originator was or is responsible; (ii) all applicable federal, state and local legal and regulatory requirements (including statutes, rules, regulations and ordinances) binding upon the Correspondent or Originator, (iii) all other applicable requirements and guidelines of each governmental and quasi-governmental agency, board, commission, instrumentality and other governmental body or office having jurisdiction; (iv) all other applicable judicial and administrative judgments, orders, stipulations, awards, writs and injunctions; (v) the reasonable and customary mortgage origination and servicing practices of prudent mortgage lending institutions that make and service mortgage loans of the same type as the Mortgage Loans in the jurisdictions in which the related Mortgaged Properties are located; and (vi) to the extent that they require a standard of care that is not lower than that required by all of the foregoing, the standards the Correspondent employs and exercises in originating, servicing and administering mortgage loans for its own account and/or for the account of an Agency or Private Investor.

Application
A series of steps, usually including the completion of documents, that a lender requires of those seeking a loan.

Application Fee
The fee charged by the lender to the borrower for applying for a loan. Payment of this fee does not guarantee that a loan will be approved. Some lenders may apply the cost of the application fee to certain closing costs.        [TOP]

Appraisal
The determination of property value based on recent sales information of similar properties.

Appraisal Fee
: A fee charged by the lender for an appraisal.

Approval Letter
Written authorization from Cypress Mortgage to the Correspondent specifying the correspondent lending programs described in the Manual in which the Correspondent is approved to participate. The most recent Approval Letter shall take precedence over prior Approval Letters and may amend, terminate, or otherwise modify prior Approval Letters.

Approval Tier
Level of approval to participate in certain lines of business that is assigned to Correspondent at time of approval.

ARM
Adjustable Rate Mortgage - Home loans with interest rates that change periodically on the basis of movement in a specified index.    [TOP]

Assessed Value
: The value placed on property by the Central Appraisal District as a basis for taxation.

Assets
What a person owns, i.e., car, stocks, bonds, mutual funds

Assignment of Security Instrument
An assignment of a Security Instrument, notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect the sale of the Security Instrument, which assignment, notice of transfer or equivalent instrument shall pertain to an individual Security Instrument loan and shall contain complete recording information (including legal descriptions where needed) pertaining to the related Security Instrument, all in accordance with all Applicable Requirements.

Assignment of Trade
Permits Correspondents to negotiate their own government or conventional trades in the securities market and assign those trades to Cypress Mortgage.

Assumable Loan
These loans may be passed on from a seller of a home to the buyer. The buyer "assumes" all outstanding payments. Adjustable Rate Mortgage (ARM)
A mortgage in which the interest rate is adjusted periodically based on an index. Also called a variable rate mortgage.     [TOP]

Assumption or To Assume a Mortgage
The taking over of an existing mortgage. Usually a purchaser will assume an existing mortgage from the vendor if the existing mortgage has a good interest rate relative to market rates

Attorney's Fees
: Charges by an independent attorney chosen by the lender to draw the legal documents, i.e. Note, Deed of Trust, etc.