Glossary of Mortgage Terms
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- Underage
- Fees collected from a borrower by a loan officer that are lower than the target fees specified by the lender or mortgage broker who employs the loan officer.
- Underwriting
- The decision whether to make a loan to a potential home buyer based on credit, employment, assets and other factors and the matching of this risk to an appropriate rate and term or loan amount.
- Underwriting Requirements
- The standards imposed by lenders in determining whether a borrower qualifies for a loan. These standards are more comprehensive than qualification requirements in that they include an evaluation of the borrower?s creditworthiness.
- Uniform Residential Loan Application ( URLA )
- The standard loan application used for residential mortgages and refinancings.
- Upfront Mortgage Broker ( UMB )
- A mortgage broker who charges a set fee for services provided, established in writing at the outset of the transaction, and acts as the borrower's agent in shopping for the best deal. The term upfront mortgage broker was coined by Prof. Jack M. Gutentag.
- Upfront Mortgage Lender ( UML )
- A lender offering loans on the internet who provides mortgage shoppers with the information they need to make an informed decision before applying for a mortgage; and guarantees them fair treatment during the period after they apply through to closing. The term upfront mortgage lender was coined by Prof. Jack M. Guttentag.
- Usury
- Interest charged in excess of the legal rate established by law.