Caps
A set percentage amount by which an adjustable rate mortgage may adjust each adjustment period. For adjustable loans, caps are usually quoted as two numbers as in 2/6. The first number indicates how much a loan may adjust at each adjustment period while the second number indicates how much a loan may adjust over its lifetime.      [TOP]

• Loans like the 3/1 and 5/1 adjustable which have an initial fixed period are quoted with 3 numbers as in 3/2/6 which would mean that the first adjustment may be as much as 3%, subsequent adjustments are capped at 2% each, and the lifetime cap is 6%.
• Two-Step loans are quoted with a single cap, which is the amount by which the loan may adjust at its single adjustment date.

Chain of Title
: A history of conveyances and encumbrances affecting the title (ownership) of real property.

Closing Costs
Fees paid by the borrower when property is purchased or refinanced. These typically include a loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, deed recording fee, and credit report charges. PMI costs are also excluded from this figure. Title insurance fees are usually in the range of 25-30cents per $1,000 borrowed. An N/A in the Closing Costs category means that the information was not available from the lender or, in the case of multiple-state lenders, differed materially from state to state.

Commitment Confirmation
Written notification provided to the Correspondent by Cypress Mortgage evidencing Cypress Mortgage's commitment to purchase the Mortgage Loans specified in said notice in accordance with Applicable Requirements and the provision of the Manual and confirming the respective Rate Locks applicable thereto.

Common Bucket
Underwritten to the stricter of Fannie Mae/Freddie Mac guidelines that enable the loans to be freely moved from one agency's pool to the other.     [TOP]

Condominium
A form of ownership of real property. The purchaser receives title to a particular unit and a proportionate interest in certain common areas. The purchaser may also receive an exclusive right to use certain areas (for example, parking and storage). A condominium is generally defined as a separately owned space bounded by the interior surfaces of the perimeter walls, floors and ceilings. Title to the common areas is in terms of percentages and refers to the entire project minus the separately owned units.

Conforming Loan
A mortgage loan for $252,000 or lower.

Construction Loan
A short term loan for funding the cost of construction. The lender advances funds to the builder as the work progresses.

Contract Documents
Correspondent Agreement, the Manual, Commitment Confirmations, Approval Letters and any and all other documents, instruments and materials required by Cypress Mortgage in connection within therewith, and any and all attachments and exhibits to any and all of the foregoing, and any and all amendments thereof.

Conventional Loan
A mortgage neither insured by the FHA nor guaranteed by the VA.      [TOP]

Conventional Mortgage
: A mortgage securing a loan made by investors without government underwrting - that is, not FHA insured or VA guaranteed.

Conversion
The right of a borrower to convert an adjustable or balloon loan into a fixed loan. The possible options are as follows:Pre-payment penalty
The penalty paid by the mortgagor to discharge a fixed rate mortgage prior to maturity. The cost is usually the lower of three months interest or the interest differential.

Convey or Conveyance
: Process of transferring ownership of a property from one person to another.

Co-op Lease
The lease with respect to a dwelling unit occupied by the Mortgagor and relating to the stock allocated to the dwelling unit.

Co-op Loan
A mortgage loan secured by the pledge of stock allocated to a dwelling unit in a residential cooperative housing corporation and a collateral assignment of the related Co-op Lease.      [TOP]

Cosignor or Guarantor
A person who formally undertakes to discharge the duties of the borrower in the event of the borrower's default.

Courier Fee
: Charges for Federal Express or a runner.

Credit Rating
Borrowers are rated by lenders according to the borrower's credit-worthiness or risk profile. Credit ratings are expressed as letter grades such as A-, B, or C+. These ratings are based on various factors such as a borrower's payment history, foreclosures, bankruptcies and charge-offs. There is no exact science to rating a borrower's credit, and different lenders may assign different grades to the same borrower.

Credit Report
A report to a prospective lender on the credit standing of a prospective borrower. Used to help determine creditworthiness. Information regarding late payments, defaults, or bankruptcies will appear here.

Credit Report Fee
: Assessed by the lender for a required credit report from a cerdit bureau.