Arbor Financial Group Marketing Engines, Inc.

Glossary of Terms

Mortgage. Real Estate & Insurance

U

Unconditional Lien Release
Signed by a contractor, subcontractor or material supplier, this form waives the right to file a mechanic's lien. This type or release in not dependent on their receiving payment for work released. This release may be submitted throughout the construction phase or at completion of the project for an OTC loan.
Underwriting
Analysis of risk and the matching of it to an appropriate rate and term. Underwriting involves an analysis of the property, as revealed in the appraisal report, as acceptable and adequate security for the loan and of the borrower's ability and probable willingness to repay the loan. Risk may also be affected by other factors, such as LTV ratios, the presence or absence of mortgage insurance, etc.
Unearned or Passive Income
Includes dividend/interest, trust income, child support, alimony or separate maintenance, foster care, unemployment, disability, social security and other retirement income, rental income, installment sales or land contract income, and any other income that is not readily verifiable by an outside, independent third party source. All unearned or passive income that is used to qualify the Borrower must be verified.
UNEMPLOYMENT COMPENSATION AWARD LETTER
A letter issued to employees who are awarded unemployment benefits when their employment is terminated through no fault of their own. The benefits they receive are called unemployment compensation.
UNIFORM RESIDENTIAL APPRAISAL REPORT (URAR)
The most common appraisal form in use. The URAR is used to document the methods used to determine the market value of single-family residences and planned unit developments.
UPDATE ADDENDUM
An update to the Preliminary Title Report/Title Commitment that reflects any changes to title since the original title report was prepared. Same as DATEDOWN ADDENDUM.
URBAN
A term used to describe a property's location. Urban properties have paved access roads and streets, they are close to neighboring properties and have support services less than 10 miles away. Urban is also a term used to describe a property located in a city or town.
USAGE RESTRICTION
Claims listed on a title report that are for usage rights on the property. Easements for public utilities, property improvement encroachments are examples of usage restrictions found on a title report.
Usury
Taking or contracting for a rate of interest greater than permitted by law for a loan.
Utilities
Basic services associated with developed areas, including electricity, telephone, fuel, water, and garbage collection.