Drew Mortgage Associates - Online Mortgage Dictionary


Satisfaction	Discharge of an obligation by payment of the amount due, as on a mortgage, trust deed or contract or payment of a debt awarded, such as a satisfaction of a judgment.
Schedule A	A section of the Preliminary Title Report/Title Commitment that lists the name of the proposed insured, amount of title insurance, estate or interest in the land, how legal title is vested and the legal description of the property.
Schedule B	A section of the Preliminary Title Report/Title Commitment that lists exceptions to title if any.
Second Homes	How about that vacation home to get away to when you just need some time away. Drew offers Second Home loans with low down payments and flexible terms such as Fixed and Adjustable rate programs.
Second Mortgage	A 2nd loan, on the same property, that is in a junior lien or subordinate position.
Second Mortgage Programs	As mortgage rates go up and down, some client prefer not to refinance the first mortgage they may have. At Drew, we realize that and offer Fixed Rate and Home Equity Line of Credit loans to give you access to the equity in your home for just about any purpose. In most cases the interest you pay on these second mortgages are tax deductible (consult your financial advisor as to IRS rules on tax deductibility). Most Second Mortgages have little or no closing costs options.
Secondary Financing	A loan secured by a 2nd mortgage or trust deed of real property. See PIGGYBACK LOAN
Secondary Market	The financial markets where groups of loans are sold to investors. Example: Primary mortgage lenders originate loans while the secondary market sells funded loans.
Secondary Residence	A property used by a person as a second residence, not as an investment.
Section 32	A section of the Federal Truth-in-Lending Act pertaining to high fee loans and the restrictions and compliance issues with which this type of loan transaction must comply.
Security Instrument	The security instrument is used to identify and encumber the real property used as collateral for the loan. It's notarized and then recorded with the county in which the property is located. Once recorded, it secures an interest in, or lien against, the property. The security instrument used is state specific. Examples are, deed of trust, security deed, a trust deed or a mortgage.
Servicing	The operations a lender or servicer performs post-origination to manage a loan, such as collection of payments, payment of taxes, insurance, property inspections and so on.
Servitude	A burden resting upon one estate for the benefit or advantage of another. An agreement granting limited permission to use the property. See LAND BURDEN
Settlement Statement	Final statement of the actual settlement costs of the loan . A Federal requirement under RESPA. See HUD-1 (or HUD-1a)
Simple Interest	Interest computed on the unpaid principal balance of a loan, as opposed to compounded interest.
Single Family Residence (SFR)	A standard home with no common areas, no homeowners' dues or sharing of common walls. A home intended to be occupied by 1 family.
Site Analysis	The study of a specific land parcel to determine its suitability for a specific use. For example, if the study of the land parcel reveals it should be used for industrial purposes, yet it's currently being used for residential purposes, then, upon review of the appraisal report, the reviewer would want to take this information into consideration when determining if the loan's collateral is sound.
Slab	A concrete floor used as a foundation in homes without a basement.
Social Security Award Letter	Documentation specifying the frequency and amount of Social Security payments an individual is eligible to receive. Social Security Award Letters are re-issued annually.
Sole Ownership	Legal title in a single individual or an entity.
Sole Proprietorship	Ownership of a business, with no formal entity as a vehicle or structure. The sole proprietorship reports its tax information on Federal tax form 1040.
Standard Coverage Policy	A title insurance policy used in several states, not having as broad a coverage as the nationally recognized American Land Title Association policies. See AMERICAN LAND TITLE ASSOCIATION (ALTA)
Start Rate	The initial interest rate charged on an adjustable-rate mortgage loan.
Settlement of Information	A confidential form filled out by buyer or seller to help a title company determine if any liens are recorded against either. Very helpful when people with common names are involved.
Submission	This refers to a complete loan application package submitted for loan approval.
Subordinate	A lien taking a legal title position junior to another lien that recorded later. For example, if a mortgage lien recorded in 1996, it can subordinate to a lien recorded in 1999. Subordination may apply not only to mortgages, but also to leases, real estate rights and any other type of debt instruments.
Subordinate Agreement	An agreement by which a lienholder agrees to accept a lien position junior to that of a later-recorded lien. For example, when a lienholder agrees to subordinate, a formal agreement must be drawn, signed and recorded to make it a legal transaction. Subordinations may apply not only to mortgages, but also to leases, real estate rights and any other types of debt interests.
Substitution of Trustee	A document that is recorded to change the trustee named in a deed of trust.
Suburban	The area around a city. Usually residential with some small businesses.
Supplemental Taxes	Additional taxes assessed by the city and/or county on property. These taxes are in addition to any taxes impounded in an escrow account.
Surety Bond	Obligation of a guarantor to pay a second party upon default by a third party in the performance it owes to the second party.
Survey	A document prepared by a licensed surveyor that verifies the accuracy of a property's legal description, plat maps, easements or other information found in a title search.