Glossary of Terms
Mortgage. Real Estate & Insurance
- 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.
- 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.