| Term |
Definition |
| De Minimus
Self-employed Borrower |
Borrower who earns less
than 5 percent of total stable monthly income from self-employed
business income. |
| Debit Card (EFT Card)
|
A plastic card, looks
similar to a credit card, that consumers may use to make purchases,
withdrawals, or other types of electronic fund transfers. |
| Deed |
A formal written instrument
by which title to real property is transferred from one owner to
another. The deed should contain an accurate description of the
property being conveyed, should be signed and witnessed according to
the laws of the State where the property is located, and should be
delivered to the purchaser at closing day. There are two parties to
a deed: the grantor and the grantee. (See also deed of trust. |
| Deed of Trust |
In many states, this
document is used in place of a mortgage to secure the payment of a
note. |
| Default |
Failure to repay a loan or
otherwise meet the terms of your credit agreement. |
| Deferred Interest |
Occurs when your monthly
payments are not large enough to pay all the interest due on the
loan. This unpaid interest is added to the unpaid balance of the
loan. The danger of deffering your interest is that the buyer ends
up owing more than the original amount of the loan. Also called
Negative Amortization. |
| Delinquency |
Failure to make payments on
time. This can lead to foreclosure. |
| Department of Veterans
Affairs (VA) |
An independent agency of
the federal government which guarantees long-term, low- or no-down
payment mortgages to eligible veterans. |
| Depreciation |
Decline in value of a house
due to wear and tear, adverse changes in the neighborhood, or any
other reason. |
| Disclosures |
Information that must be
given to consumers about their financial dealings. |
| Discount Points |
Additional points you can
pay a lender to lower the interest rate on your loan at closing.
Each point is equal to 1 percent of the loan amount (e.g. two points
on a $100,000 mortgage would cost $2,000). Also referred to as
Points. |
| Documentary Stamps |
A State tax, in the forms
of stamps, required on deeds and mortgages when real estate title
passes from one owner to another. The amount of stamps required
varies with each State. |
| Documentation |
A list of documents you
will be required to provide when submitting a loan application. The
required documents range from w2's to a signed sales contract.
|
| Documentation Class |
Category determined by Loan
Prospector to indicate the minimum level of documentation you must
obtain to underwrite the loan. The three possible classes are:
Accept Plus, Accept and Caution. |
| Down Payment and Fees
|
Money paid to make up the
difference between the purchase price and mortgage amount plus the
closing cost fees to close the loan. |
| Due-On-Sale Clause |
A provision in a mortgage
or deed of trust that allows the lender to demand immediate payment
of the balance of the mortgage if the mortgage holder sells the
home. |
