Epolicy Network

Hazard Insurance – A form of insurance in which the insurance company protects the insured from specified losses, such as fire, windstorm and the like, it would not cover earthquake, riot, or flood damage.

Homestead – The dwelling (house and contiguous land) of the head of the family. Some states grant statutory exemptions, protecting homestead property (usually to a set maximum amount) against the rights of the creditors. Property tax exemptions are also available in some states.

Housing Expenses-to-Income Ratio – The ratio, expressed as a percentage, which results when a borrower’s housing expenses are divided by his/her net effective income (FHA/VA loans) or gross monthly income (Conventional loans).
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Farmers Home – Administration Provides financing to farmers and other qualified borrowers who are unable to obtain loans elsewhere. (FMHA)

Federal Home Loan Mortgage Corporation – Also called Freddie Mac, is a quasi-governmental agency that purchases conventional mortgages from insured depository institutions and HUD-approved mortgage bankers. (FHLMC)

Federal Housing Administration – A division of the Department of Housing and Urban Development. Its main activity is the insuring of residential mortgage loans made by private lenders. FHA also sets standard for underwriting mortgages. (FHA) [Read more →]

D.R. / Debt Ratio – The customer’s monthly obligations divided by their monthly gross income.

Deed – Legal document which conveys the title to a property.

Deed of Trust – A document used which pledges real property to secure a debt. In some cases a deed of trust can replace a mortgage.

Default – Failure to meet legal obligations in a contract, specifically, failure to make the monthly payments on a mortgage.
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Back End – This refers to the debt-to-income ratio calculated using principal, interest, taxes, insurance and consumer credit obligations divided by gross monthly income. It is expressed as a percentage.

Balloon Usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a time specified in the contract.

Beneficiary – The entity funding the loan. This is the entity to which the loan is owed.
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1003 – Uniform Residential Loan Application.

A & D LOAN – Acquisition and development loan- a loan for the purchase of raw land for the purpose development.

Abstract Title – A written history of the ownership of a parcel of land.

Acceleration Clause – Allows the lender to speed up the rate at which your loan comes due or even to demand immediate payment of the entire outstanding balance of the loan should your default on you loan.
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Given the controversy surrounding this area of law, and the fast pace at which it continues to develop, it is often a difficult task to pinpoint with certainty the elements of bad faith. This is especially true when courts within a jurisdiction disagree as to the requisite standards of conduct or burden of proof. Any formal analysis of bad faith is also complicated by the fact that jurisdictions may differ as to the tort, contract, or statutory relief available to a claimant. Since jurisdictions vary as to the elements required to prove a bad faith case, we provide a look at certain representative states. [Read more →]