Arbor Financial Group Marketing Engines, Inc.

Glossary of Terms

Mortgage. Real Estate & Insurance

V

Vacancy Factor
Percentage rate expressing the loss from gross rental income due to vacancy and collection losses.
Valuation
Estimation of value or price through appraisal.
Valuation Condition (VC)
Exception placed by the Valuation Department on an appraisal.
Variance
Approved special charge in construction codes, zoning requirements or other property use restriction.
VARIABLE INTEREST RATE
An interest rate that fluctuates as a result of changes in a controlling index rate . With adjustable-rate mortgages, there are usually maximums as to the frequency and amount of fluctuation.
Vendee
Party to whom personal or real property is sold.
Vendor
Seller of personal or real property.
Vendor's Lien
Unpaid seller's right to a prior lien on property until the purchase price has been recovered.
VERIFICATION OF DEPOSIT (VOD) 
Documentation that confirms the customer has access to specified amounts of money through a bank or investment account. Verifications of Deposit are documented on Fannie Mae form 1006.
Verification of Employment (VOE)
Documentation of a mortgage applicant's work history and/or occupation that is intended to assist with the lender's credit investigation and decision process. Many lending institutions ask potential borrowers to sign employment verification forms and then under the applicant's signature, make direct inquires to employers about the applicant.
VERIFICATION OF MORTGAGE (VOM)
Documentation that establishes the customer's mortgage payment history.
VERIFICATION OF SECONDARY FINANCING FUNDS FORM
A form that must accompany all loans that have secondary financing.
VESTING
Names of the borrowers and the manner in which they hold legal title to the property. May include marital status. See also LEGAL TITLE.
Veterans Administration (VA)

Independent agency of the federal government created in 1930. The Servicemen's Readjustment Act of 1944 authorized the agency to administer a variety of benefit programs designed to facilitate the adjustment of returning veterans to civilian life. The VA home loan guaranty program is designed to encourage lenders to offer long-term, low-down-payment mortgages to eligible veterans by guaranteeing the lender against loss.

VOLUNTARY LIEN
A secured financial interest in a property that is created by agreement between a creditor and the borrower. Basically, the borrower is agreeing to use the property as collateral for the loan. The most common example of a voluntary lien is the one created by a mortgage given for a home loan. See also LIEN.
Voluntary Conveyance
Voluntary transfer of title to the real estate security on a defaulted mortgage by deed from the borrower to the lender as an alternative to foreclosure. By arrangement between the parties, the lender saves the expense of foreclosure and the borrower receives credit for payment of the debt in full.