Simplifile Glossary

back‑end ratio

See debt‑to‑income ratio (also called back‑end ratio).

backlog

A list of projects that need attention.

balloon mortgage

A mortgage where the final payment is substantially larger than the previous payments.

bankruptcy monitoring fee

May be charged when a borrower takes out bankruptcy to prevent foreclosure.

bargain and sale deed

Bargain‑and‑Sale deed is usually used to convey property to a buyer for valuable consideration. Bargain and sale deed carries, contains no warranties against liens or other encumbrances against title, except any that the grantor specifically sets out in the deed. It is implied that the grantor has the right to transfer the deed. It is also sometimes referred to as a special or limited warranty deed.

Be as “e” as You Can Be

a prescribed strategy for implementing e closing best practices based on package types. In addition, the strategy needs to be comprehensive, moving quickly from pilots to all package types to drive change. E Closing package types are classified based on the degree of accepted and allowable electronic signatures. Closing packages included in a lender’s strategy are:

• Ink‑Signed ‑ No documents can be e‑Signed.
• Hybrid ‑ Ancillary documents are e‑Signed.
• Hybrid & eNote ‑ Ancillary documents and notes are e‑Signed.
• Fully Digital ‑ Security and notary documents are e‑Signed/e‑Notarized. Ancillary documents are e‑Signed.

bill of sale

A document that serves as written proof for the transfer of title of personal property. (Real estate is transferred by a deed.) A bill of sale may be included with a real estate contract to outline what personal property is being transferred to the new owner.

bond fee

Paid to set up a bond secured by a mortgage.

bond review fee

Charged to review any bonds secured by a mortgage.

book and page

The location of a recorded document at a government repository.

borrower

The person receiving money from a lender. The borrower’s name appears on loan documents.

bridge loan (also called swing loan)

A short term loan used in the period between paying off an old loan and permanent financing. A bridge loan is often used to build or purchase a new home when the previous home is still owned, but is for sale. Also called a swing loan.

button

In the Simplifile application, a “button” may be one of several things.

• A button may be a graphical element with a distinct border that initiates an action. For example, the Save button (  ).

  A button often (but not always) includes button name inside the button border and may or may not contain a symbol (or icon) inside the border.

  In the documentation, this type of button is most often represented with its name in initial capital letter and bold. The word “button” may or may not be included in the text. For example, “Click the Save button” (preferred) or “Click Save.

• A text button may be blue text with or without an icon that initiates an action. For example, the button.

  In the documentation, this type of button is most often represented with its name in blue and often without the icon. For example, “Click the Register More Counties button.” The word “button” may or may not be included in the text. For example, “Click the Register More Counties button” (preferred) or “Click Register More Counties."

• An icon button may be only an icon that initiates an action. For example the button. Some icons are just visual indicators and do not initiate an action.

  In the documentation, when icons are used as buttons we usually include the function or name of the button in bold and the icon in parentheses. For example, “Click the Edit (  ) button, the Ellipsis (  ) button, and the Plus (  ) button. Icon buttons may or may not be inside a border in the documentation.

Buttons and icon buttons differ from links in that links are often colored and underlined text and usually open web pages where buttons and icon buttons usually open pages, windows, or tools within the Simplifile application from which you may do an activity or activities. The blue underlined cross‑reference topic links in this Simplifile documentation are links.

Not all icons are buttons. Some icons are visual indicators or status or other properties that do not initiate an action.

‑ C ‑

cancellation

A cancellation typically means that a lender has canceled, or forgiven, the debt owed by the borrower.

cap

The maximum interest rate change allowed over the initial note rate. For example, if the interest rate on an adjustable rate mortgage can increase over a certain time by no more than 8%, there would be a cap of 8% on the interest rate.

cash to close

In real estate, the amount of money needed to pay costs and fees necessary to close a loan.

CD (closing disclosure)

See closing disclosure (CD) (also called disclosure).

certificate of occupancy

A document issued by local government that states that new construction has been inspected and is built in accordance with regulations, and is therefore ready to be occupied.

certification fee

Paid to assess the financial status of a home owner’s association (HOA).

certificate of occupancy

A document issued by local government that states that new construction has been inspected and is built in accordance with regulations, and is therefore ready to be occupied.

certified copy

A document or copy of a document verified as a true and accurate copy of the original. Some counties provide electronic certified documents while other counties require a physical paper certified copy.

CFPB

See Consumer Financial Protection Bureau (CFPB).

chain of lien

A legal document issued when someone files a claim against real property for money or services owed. For example, a roofer who has not been paid might file a claim of lien against the property where the new roof was installed. The owner cannot sell the property until the lien is paid off to clear the title to the property.

chain of title

A recorded history of all ownership documents for a particular piece of property. A chain of title is the sequence of historical transfers of title to a property. It is a valuable tool to identify and document past owners of a property and serves as a property's historical ownership timeline. The "chain" runs from the present owner back to the original owner of the property.

changed circumstances

In real estate, an unexpected event that affects the borrower’s eligibility for the loan or that requires an increase in settlement costs above their tolerances or regulated limits. A lender must supply a revised loan estimate within three days of such an event.

chosen interest rate credit or charge total

The sum of all payments to a mortgage broker from a lender. If the net payment to the broker is positive, the borrower receives a credit. If the net payment to the broker is negative, there is a charge to the borrower.

claim of lien

A legal document issued when someone files a claim against real property for money or services owed. For example, a roofer who has not been paid might file a claim of lien against the property where the new roof was installed. The owner cannot sell the property until the lien is paid off to clear the title to the property.

clear title

Ownership that is free of any encumbrance.

CLO access fee

May be charged when a borrower uses a computerized loan origination system to choose items such as lenders, mortgages, settlement providers, or other products.

closing (also called escrow closing, real estate closing, settlement)

In real estate, the process that occurs when all parties involved in the purchase or refinance of real property execute legally binding documents that pass the real property title from seller to buyer, and the seller is paid.

A closing agent or settlement agent organizes and supervises a closing.

closing costs (also called settlement fees)

The expenses incurred when a property is purchased or refinanced. They may include but are not limited to attorney’s fees, points, credit report fees, document preparation fees, mortgage insurance premiums, inspections, surveys, appraisals, property taxes, deed recording fees, and homeowners insurance.

closing disclosure (CD) (also called disclosure)

Contains details about a loan such as the fees and other closing costs required to finalize the loan, the terms of the loan, and projected monthly payments. As of 2015, this single document replaces the HUD‑1 settlement statement and the Truth in Lending Disclosure document for most housing loans secured by real estate.

closing instructions

A document that authorized a closing company to gather the information needed to prepare, deliver, and record documents related to a real estate transaction.

closing statement (also called settlement or settlement sheet)

In real estate, the final statement of credits and expenses as approved during closing. The closing statement lists the source of funds and the distribution of funds in connection with the purchase and/or mortgaging of residential property.

co‑borrower

A secondary borrower whose income and credit helps the initial borrower qualify for a loan. The co‑borrower’s name is included on loan documents. Both borrowers are held to equal legal obligations.

collections, judgments, and liens

Monies owed because of a court decree, including all types of delinquent credit.

Collaboration and Post Closing (Simplifile offering)

Simplifile's offering to lenders and settlement agents, designed to help them with the loan process from beginning to end.

commitment letter / loan commitment

A written offer that states that a lender is willing to make a loan by a particular date under certain conditions.

commitment fee

Charged for an unused line of credit or undisbursed loan to guarantee the loan at a future date.

conforming loan

A mortgage loan that meets underwriting guidelines for Fannie Mae and Freddie Mac. A limit, which is set yearly, is placed on the amount of the loan.

construction loan

A short‑term loan made to finance the building of a home or other real estate project. After completion, the loan is typically repaid from permanent financing (such as a mortgage).

Consumer Financial Protection Bureau (CFPB)

The government entity responsible for TRID and other finance‑related consumer protections.

consummation

The point at which a consumer becomes contractually obligated to the creditor on the loan (dependent on state law).

contingency

A condition that must be met before a contract is legally binding or before a sale is completed, which must be agreed upon by both parties. A contingency basically provides a way to back out of a contract.

contract broker (also called transaction broker, facilitator, or coordinator)

A contract broker represents neither the buyer nor the seller, but helps both parties complete a real property sale.

conventional loan / conventional mortgage

A real estate loan that is neither insured by the Federal Housing Administration (FHA) nor guaranteed by the Veterans Administration. Conventional loans are subject to the terms of their particular organization. Because the lender is not required to follow federal guidelines, the conditions of the loan may be more flexible.

convertible ARM

An adjustable rate mortgage (ARM) [also called variable rate mortgage (VRM)] that can be changed into a fixed‑rate mortgage during a specified period and under certain conditions.

co‑op / cooperative (also called cooperative ownership)

Housing typically owned and managed by a corporation where residents hold shares that let them occupy a specific unit of the property. Resident ownership is of the share in the corporation, not of the property.

copy or fax fee

Charged to cover costs of copying or faxing documents between parties.

counteroffer

An offer made proposing changes to a previous offer. Someone who makes a counteroffer declines the previous offer but continues to negotiate for a deal both parties can accept.

courier fee

Charged to deliver loan application, processing, and closing documents.

credit rating

An estimate of a person’s ability to repay a financial debt.

credit report

An official summary of someone’s financial history prepared by a credit‑reporting agency or bureau, including the current status of the person’s credit standing. Lenders use these reports to help determine a loan applicant’s creditworthiness. The credit report fee is paid to a lender so that the lender can obtain a loan applicant’s credit history directly from the credit‑reporting agency or bureau.

credit report fee

The cost for a report that shows financial credibility, which helps determine how good a credit risk a borrower is.

‑ D ‑

death certificate

Can refer either to a document issued by a medical practitioner certifying the deceased state of a person or, popularly, to a document issued by a person such as a registrar of vital statistics that declares the date, location and cause of a person's death.

debt‑to‑income ratio (also called back‑end ratio)

Used with the mortgage‑to‑income ratio (or front‑end ratio) to determine how much of a mortgage someone can afford. The debt‑to‑income ratio adds the potential housing expense to any other consumer debt and divides the total by the borrower’s gross monthly income. It typically has a maximum limit of 35%.

declaration

Usually a document or oral statement indicating a property is being held for the benefit of another person or individuals.

deed (also called transfer document)

A legal document that transfers ownership or title to a property from one person or entity to another. Each type of deed (for example, a disclaimer deed, grant deed, warranty deed, fee simple deed, transfer deed, or quitclaim deed) has some legal differences but they all convey property ownership. Sellers and buyers sign the deed during closing. It is then recorded.

deed of trust

A document that transfers legal title to a trustee, who holds the title as security for a loan between a borrower (trustor) and lender (trust deed beneficiary). Trust deeds always involve at least three parties. The trustee’s main function is to sell the property at public auction if the borrower defaults on the loan payments. Compare with mortgage.

The following states typically use trust deeds.

¹ Unless homeowner requests judicial

² Sometimes

deed preparation fee

Charged to create and review the documents necessary to prepare a deed for execution.

default (also called breach of contract)

Failure by one party of a contract to fulfill the terms of the contract.

deferred student loan

Borrowed college funds whose payments have been temporarily suspended.

delinquent / delinquency

A borrower is delinquent when he or she fails to make mortgage or loan payments as required in the loan documents. This can result in foreclosure.

delinquent taxes

Local, state, or federal taxes that are overdue.

Department of Housing and Urban Development (HUD)

See U.S. Department of Housing and Urban Development (HUD).

dialog, dialog box

See window.

disaster inspection fee

Covers an inspection to document the condition of a property after a disaster.

discharge

A document (usually one page) issued by the lender, usually with a title such as “Discharge of Mortgage” or “Satisfaction of Mortgage.” Discharges are often filed directly by banks or settlement attorneys, for example, as part of a sale or refinancing transaction.

disclosure

See Simplifile Glossary .

Doc Viewer

A short name for the Document Editor and Document Viewer.

Document Editor

The Submitter, Document Builder, and Settlement Agent version of the Simplifile Document Editor/Viewer tool. The Recipient and Lender version of the tool is called the Document Viewer. Both the Document Viewer and Document Editor use and access the same technology and documents, but the Document Editor is configured for submitters, Document Builder users, and settlement agents.

document preparation fee

Charged to prepare closing documents.

Document Viewer

The Recipient and Lender version of the Simplifile Document Editor/Viewer tool. The Submitter, Document Builder, and Settlement Agent version of the tool is called the Document Editor. Both the Document Viewer and Document Editor use and access the same technology and documents, but the Document Viewer is configured for recipients and lenders.

down payment

An initial sum paid at the time of purchase. Usually the difference between the purchase price and the loan amount.

dry wall inspection fee

Covers an inspection of the drywall within a building.

‑ E ‑

earnest money (also called deposit)

A sum of money offered in good faith by a prospective purchaser at the time of the purchase offer. These funds are typically deposited into an escrow account and held until the real estate closing takes place. At the closing, the buyer is either given credit for the earnest money that has already been paid, or it is returned to the buyer. These funds may also be returned to the buyer if the sale fails.

easement

The right to use another person's property for a specific, limited purpose. For example, utility companies may have easements over property so they can work with power or sewer lines and so forth. Closing documents and land surveys should indicate easements, which must be acceptable to the mortgage company.

electrical inspection fee

Covers an inspection of the electrical system within a building.

electronic document delivery fee

Charged to electronically deliver loan application, processing, and closing documents.

environmental inspection fee

Covers an inspection of the environmental aspects of a building.

eRecording Administrator

A user with the eRecording Administrator role is an eRecording Administrator.

escrow service fee

Charged to set up and manage the escrow account.

escrow waiver fee

Charged if a borrower chooses not to establish an escrow fund to collect monies for recurring costs such as property insurance and taxes.

encumbrance

A claim or liability such as a mortgage, easement, lease, or restriction that affects the title and value of a property.

equity (also called real property value)

The difference between the current fair market value of a property and the amount still owed on the mortgage, lowered by liens, second mortgages, and other additional debts against the property. The amount an owner would receive from the sale of the property.

equity loan

An equity loan lets you draw on the real property value of your real estate. The fair market value of the property minus any current mortgages or other debts secured by the property help determine the amount of the loan. See also home equity line of credit (HELOC).

eRecording

The process of electronically registering an official document instead of using paper copies. Simplifile leads the nation with the largest eRecording network.

eRecording, Simplifile^® eRecording

The Simplifile electronic recording service name.

ERT (estimated recording time)

See estimated recording time (ERT).

escrow

Something of value (such as a deed, a bond, money, or property) held by a neutral third party until a specified obligation or condition has been met. For example, someone’s monthly mortgage payment may include funds to pay for future taxes and insurance in addition to the principal and interest. This escrow is held by the lender until taxes and insurance are due; then the mortgage company pays the taxes and insurance on the borrower’s behalf.

estimated fees

Simplifile's fee estimates are based on schedules provided by the associated recording jurisdiction and are calculated on package properties known to us at the time of submission. Such properties may include but not be limited to:

• page counts
• document types
• indexing data such as party count and consideration amount

However, additional factors may affect final recording fees that cannot be automatically detected by Simplifile, and therefore are not included in our estimates.

Simplifile does not guarantee the accuracy of our fee estimates, and submitters are responsible for all recording fees and taxes assessed by the recording jurisdiction. Most jurisdictions post comprehensive fee schedules on their websites, and users are encouraged to consult these sites if additional certainty regarding fees and taxes is required.

estimated recording time (ERT)

This is the average of how quickly Simplifile packages are recorded or rejected by the jurisdiction. It is based only on Simplifile package submissions. Simplifile has no control of how quickly or slowly jurisdictions record or reject packages.

‑ F ‑

Fair Credit Reporting Act

A federal law that protects consumers by regulating the consumer credit agencies’ disclosure of individuals’ credit histories. The Act also establishes guidelines and procedures for correcting errors disclosure of individuals’ credit histories. The Act also establishes guidelines and procedures for correcting errors on errors on your credit report.

fair market value (FMV)

The price a buyer and a seller in a competitive market agree on for a specific property.

Fannie Mae

See Federal National Mortgage Association (Fannie Mae).

Federal National Mortgage Association (Fannie Mae)

A federal agency established in 1938 to purchase mortgage loans from lenders as an investor. Fannie Mae originally bought FHA loans, but now invests in conventional, FHA, and VA loans. Fannie Mae’s Community Home Buying Program helps low‑to‑moderate income families buy a home by decreasing the amount of down payment required and allowing higher debt‑to‑housing ratios in some cases.

Federal Home Loan Mortgage Corporation (Freddie Mac)

A corporation chartered by Congress in 1970 that buys mortgages and helps to create a flow of funds to mortgage lenders.

Federal Housing Administration (FHA)

An agency of the U.S. Department of Housing and Urban Development (HUD) meant to encourage improvement in housing standards, to provide insurance for mortgages, and to help stabilize the mortgage market. FHA’s main activity is to insure residential mortgage loans made by banks and private lenders. The FHA sets standards for construction and underwriting but does not lend money or build housing. See also entries beginning with FHA.

FHA

See Federal Housing Administration (FHA).

FHA 203b

The most popular FHA government loan, often used for homes that need less than $5000 worth of repairs. It typically requires at least a three percent down payment.

FHA 203k (also called rehabilitation mortgage)

A renovation and repair loan through the Federal Housing Authority, typically made for single family properties and typically disbursed in stages that cover specific repairs.

FHA Futures

Let’s a buyer borrow up to 6% of the loan amount to use towards closing costs and the down payment.

FICO Score

A credit rating used to help determine a borrower’s ability to repay a loan and the amount of possible risk on the loan.

fiduciary

An entity with the power and obligation to act for another.

filing fee

Paid to have documents recorded.

filter

In the Simplifile application, a “filter” is a set of parameters that must be met for the information to be displayed in a page or window. To help you quickly find the information and documents with which you work, you may create filters in many of the pages. Often a filter is represented by a Funnel button (  ). Clicking on the Filter button opens a filter window from which you can choose your filter parameters.

final title policy

The final title policy is a legal and binding policy issued at closing, as opposed to a title certificate or other preliminary title document.

first mortgage

The primary lien against a property. This mortgage has priority over any other mortgages, liens, or other claims on a property.

first position mortgage lien

Has priority over all other liens or claims on a property.

fixed rate mortgage

A mortgage with an interest rate and monthly payment that cannot change over the life of the loan.

float down

An option offered by a lender that lets the borrower re‑lock the interest rate on a loan if interest rates go down. Lenders typically charge for this option, and it can typically be incurred only once.

flood certification

Covers an inspection to verify the flood zone or flood hazard area status of a building’s location.

flood insurance

An insurance policy that covers property in a flood area against flood damage. When purchasing real estate, a survey is typically required where there is any risk of flooding to the property. A lender may require flood insurance before granting a loan on a property at risk for flooding.

FMV

See fair market value (FMV).

foundation inspection fee

Covers an inspection of the foundation of a building.

Freddie Mac

See Federal Home Loan Mortgage Corporation (Freddie Mac).

front‑end ratio

See mortgage‑to‑income ratio (or front‑end ratio).

funded

In real estate, a mortgage that has been set up. Money has changed hands, and payments to repay the funded loan can begin.

‑ G ‑

garnishment

Monies, wages, or property that must be applied to a specific debt or creditor.

general counsel fee

Charged for legal services.

General Ledger

Used by financial institutions. All recording and Simplifile fees are collected nightly via secure Automated Clearing House (ACH). We debit your account one time each business day for any charges incurred the previous day.

grace period

A specified number of days after a loan payment due date before or during which a loan payment must be paid to avoid a late charge. A typical grace period for a traditional mortgage is 15 days.

grantee

In real estate, someone who buys or is given title to or interest in a property.

grantor

In real estate, someone who sells or transfers title to or interest in a property to another person.

Government‑Sponsored Enterprise (GSE)

A financial services company intended to make borrowing easier for certain sectors such as students, farmers, and home owners. See Fannie Mae and Federal National Mortgage Association (Fannie Mae).

GSE

See Government‑Sponsored Enterprise (GSE).

guarantee mortgage

A mortgage that is guaranteed by a third party, often a government agency.

‑ H ‑

hazard insurance

A borrower‑purchased insurance policy that covers a property against loss due to hazards such as fire, hailstorms, and other natural events. Some types (such as for flood or earthquake) must be purchased separately. Often a lender requires the borrower to pre‑pay part of the annual premium at closing. The monies are held for the borrower in an escrow account and paid by the lender when due.

heating/cooling inspection fee

Covers an inspection of the heating and cooling systems of the building.

HELOC

Home equity line of credit. Uses the borrower’s home as collateral.

See home equity line of credit (HELOC).

high cost mortgage counseling fee

May be charged if a loan exceeds certain thresholds to cover the cost of explaining to the borrower the terms, advisability, and appropriateness of the loan.

HOA

See homeowners’ association (HOA).

home equity line of credit (HELOC)

Similar to an equity loan, but instead of a single large loan, this loan lets owners withdraw and repay funds on an as‑needed basis.

home inspection

An examination made by a professional home inspector to assess the physical condition of a property. Many purchasing contracts require that the buyer have a home inspection performed within a few days of the offer’s acceptance.

home inspection fee

Covers any inspection by a professional (not an appraiser) regarding the condition of a home.

homeowners’ association (HOA)

An organization in a subdivision or planned community such as a condominium village that makes and enforces any covenants or restrictions for the properties covered. HOA dues or fees are paid to condominium or homeowners’ associations for maintenance of common areas.

homeowners association lien

Monies owed for monthly fees or special assessments.

homeowners insurance

A borrower‑purchased insurance policy that covers a property against damage to the house itself or to personal property inside the home. This type of policy usually also covers accidents that may occur inside the home or on the property. Often the borrower pays the premiums to the lender monthly, along with the principal / interest payment. The monies are held for the borrower in an escrow account and paid by the lender when due. See also hazard insurance.

homeowner's warranty

A policy that covers specific service or replacement of the major components of a house, such as the furnace, plumbing, or major appliances, for a specific time period. This type of policy is often provided by the seller or builder as a condition of sale.

HUD

See U.S. Department of Housing and Urban Development (HUD).

‑ I ‑

icon

In the Simplifile application, an “icon” is a small graphical element usually without a border.

An icon may (but is not required to) display with its name in light blue. For example, .

Some icons are visual indicators of status or other properties that do not initiate an action.

When an icon initiates an action it is also considered button.

In the documentation, when icons are used as buttons we usually include the function of the icon button in bold, the icon in parentheses, and the word “icon” or "button" may or may not be included in the text. For example, “Click the Edit button (  ).”

indexing

In Simplifile, the process of adding names or other searchable pieces of information mentioned in a legal document to a database associated with that document via the document viewer. This lets people who search county records find documents more easily.

in‑person electronic notarization (IPEN)

In‑person electronic notarization (IPEN) requires the signer and notary to be in the same location but allows them to apply electronic signatures to documents. Depending on the state, there are additional rules around IPEN. Some states require the technology vendor to register with the secretary of state and a separate registration may be required for the notary. Your notary vendor should be able to assist in fulfilling these requirements. Simplifile’s Document Builder fulfills these requirements for servicers in applicable jurisdictions. A newer and less‑widely accepted electronic notarization option which does not require the signer and notary to be in the same location and can typically be done via webcam.

installment

Loan repayment due as one of several equal payments.

interface element ‑ checkbox

Checkboxes are usually used for multi‑select interactions but can also be used when a single option state can be used. For example, a "Show Completed" checkbox control can be assumed to mean "Do not show Completed" when unchecked.

interface element ‑ color usage

Colors are not used for decoration or ornamentation. In‑line application of color styles is also be kept at a minimum.

For the current color usage guidelines, see https://confluence.simplifile.com/display/product/Color+Usage .

interface element ‑ disabled interface elements

Typically, disabled buttons or other interface elements use their enabled color but have an opacity of 50%.

interface element ‑ dropdown fields as a toggle

dropdown fields are used to select an item from a predefined list, but can only show the selected option in it's static state.

interface element ‑ needs attention ticker

A "ticker" is a colored indicator that provides a count of important or required work.

interface element ‑ radio controls

Radio controls (options) work best on forms where the options need to be persistently visible.

interest rate

The amount charged to borrow money, expressed as a percentage of the loan’s principal. Unlike the annual percentage rate (APR), the interest rate does not include additional fees, finance charges, and closing costs related to the loan.

interest rate cap structure

In an adjustable‑rate mortgage (ARM), the different limits to interest increases over the life of the loan, such as the initial cap, the period cap, and the lifetime cap.

integration

At Simplifile, the process of combining a third party program with Simplifile to allow Simplifile access to customers who use the third party program.

investment property

A property purchased to make money through rents and/or resale. The owner does not occupy such a property as a primary residence.

IPEN (In‑person electronic notarization)

See in‑person electronic notarization (IPEN).

item

In the Simplifile application, an “item” is an entry in a menu, dropdown list, or a row in a table. Blue items are "active" (will do something when clicked) and gray items are informational.

‑ J ‑

joint tenancy

A property right where two or more people own or rent a property together. If one of the joint tenancy owners dies, that owner’s property rights automatically pass to the remaining owners.

judgment / judgment lien

Created when someone wins a lawsuit against you and records the judgment against your property. In real estate, a court ruling that gives a creditor the right to a debtor’s property, usually after the debtor defaults on the mortgage.

junior mortgage

A second, third, or equity mortgage. In the case of default, a junior mortgage is paid off after the first, or senior, mortgage.

‑ L ‑

Land Records Management System (LRMS)

A method used to record and store property documents that makes them accessible via computer.

lead inspection fee

Covers an inspection to determine the existence of lead within a building.

late charge

The amount charged if a borrower does not make a loan payment before or within a specified number of days after the payment due date (the grace period). Any late charge must be defined in the original loan agreement.

legal description

In real estate, a document that uses information such as the land lot, the subdivision name, and the block or parcel to describe, locate, and identify a piece of property that is being bought or transferred in some other way. A binding real estate contract must include an accurate legal description.

LegalEase

LegalEase, from Frost Bank, is an account specifically used for paying county and state services. A 16‑digit LegalEase access number is required. Your account is debited one time each business day for any charges incurred the previous day.

lender

The party that offers funds for use to purchase real properly. Often, a bank or other financial institution.

lenders attorney fee

Covers legal fees for a lender.

liability

For a borrower, a financial responsibility such as child support or lines of credit used to help determine how large of a mortgage the borrower can have.

lien

In real estate, a legal claim to a property that must be released before ownership can be transferred. For example, a mortgage is a property lien; a judgment lien is awarded at the end of a lawsuit. A lienor, or lienholder, is the person or entity that owns a lien.

link

In the Simplifile application, a “link” is blue underlined text that opens another page either internal to or external to the documentation or a window. Many of the topics and tasks references in this Simplifile documentation are links.

listing (also called listing contract or listing agreement)

An agreement between a real estate broker or agent (called a listing agent, seller’s agent, or broker) and a seller. The agreement gives the broker the rights to advertise the property and represent the seller, often for a specified period of time. In most cases, the brokerage earns its commission only if the agent finds a viable buyer for the property within the time of the listing contract.

listing price (also called asking price)

The price the seller wants for a property. The price a buyer offers and the final contract price may be less than, equal to, or more than the listing price.

LRMS (Land Records Management System)

See Land Records Management System (LRMS).

loan application

A request to borrow money that includes information about the borrower’s financial situation and the property being purchased. At minimum, it should include the borrower’s name, income, and Social Security number (or other unique identifier if the borrower has no Social Security number); the property address; an estimate of the value of the property; and the amount of the desired mortgage loan.

loan estimate

An informational document that contains estimated information about a requested loan such as the potential closing and ongoing costs and possible changes in the interest rate. As of 2015, this single document replaces the Good Faith Estimate (GFE) and an initial Truth in Lending Disclosure document for most housing loans secured by real estate.

loan level price adjustment

A charge for risk factors such as a low credit score or a high loan‑to‑value.

loan origination

The process of creating a mortgage loan. During the process, the borrower provides financial information to the lender, who then determines the type, amount, and interest of loan the borrower can afford. The loan originator is the person or entity, usually a bank or mortgage broker, who takes a loan application and offers or negotiates the terms of the mortgage for financial gain.

load origination fee (points)

The lender or broker’s administrative costs for processing a loan. Also called Points.

load originator compensation

Payment made to the loan originator.

loan‑to‑value (LTV)

A comparison of the amount of a mortgage and the value or sales price of the property being mortgaged. For a purchase, LTV divides the loan amount by the lower of the sales price of a home or the appraised value of the home. For a refinance, LTV divides the loan amount by the appraised value. The higher the LTV, the more risk for the lender, and the loan will likely cost the borrower more to offset the risk.

lock‑in / rate lock

An agreement where the lender guarantees a specific interest rate and loan terms for a certain amount of time at a particular cost. If interest rates go up, the borrower’s rate does not. If interest rates go down, the seller may let the borrower re‑lock at the lower rate (a float down option), but may also require more discount point fees.

LRMS

See Land Records Management System (LRMS).

LTV

See loan‑to‑value (LTV).

‑ M ‑

manufactured housing inspection fee

Charged to inspect a home that was manufactured off‑site and brought to the lot, as opposed to being built on‑site.

maturity date

The date on which the final payment on a financial instrument such as a mortgage becomes due and payable.

mechanics lien

A financial claim that guarantees payment for work performed and materials provided for building, repairing, or improving a structure.

menu

In the Simplifile application, a “menu” is a list of items (often actions) that displays when some buttons [such as the Actions button or the Ellipse button (  )] or dropdown lists are clicked.

MERS registration fee

Charged when a loan is transferred to the Mortgage Electronic Registration System.

modification / loan modification

A permanent change in a mortgage where a lender makes a loan more affordable to a borrower who is under financial distress. The lender may reduce the interest rate, convert the loan from a variable to a fixed interest rate, or increase the term of the loan.

MI upfront premium

First mortgage insurance payment made at closing.

MISMO, (Mortgage Industry Standards Maintenance Organization)

MISMO® is the standards development body for the mortgage industry. MISMO developed a common language for exchanging information for the mortgage finance industry. MISMO standards are accepted and deployed by every type of entity involved in creating mortgages, and they are required by most regulators, housing agencies and the GSEs that participate in the industry.

modification fee

Charged for any changes made to the structure of a loan.

mold inspection fee

Covers an inspection to determine the existence of mold within a building (airborne or surface).

mortgage

A real property lien that gives the lender the property as security if the borrower should default on the mortgage. With a mortgage, the mortgagor gives legal title directly to the mortgagee. A mortgage requires a judicial foreclosure. Compare with Simplifile Glossary .

The following states typically use mortgages.

³ sometimes

⁴ if the home owner requests it

mortgage banker

An entity that originates mortgages.

mortgage broker fee

Paid to the broker who originates the loan.

Mortgage Industry Standards Maintenance Organization (MISMO)

MISMO® is the standards development body for the mortgage industry. MISMO developed a common language for exchanging information for the mortgage finance industry. MISMO standards are accepted and deployed by every type of entity involved in creating mortgages, and they are required by most regulators, housing agencies and the GSEs that participate in the industry.

mortgage insurance

A policy that protects a lender (the mortgagee) if the borrower (the mortgagor) defaults on the mortgage loan. Many government loans and some conventional loans require mortgage insurance if a loan has a loan‑to‑value (LTV) over 80%.

mortgage‑to‑income ratio (or front‑end ratio)

Used with the debt‑to‑income ratio (also called back‑end ratio) to determine how much of a mortgage someone can afford. The front end ratio divides the potential housing expense by the borrower’s gross monthly income. It typically has a maximum limit of 28%.

‑ N ‑

navigation bar

In the Simplifile application, the “navigation bar” is the gray bar in the left panel that is used to navigate Simplifile application pages.

The navigation bar items displayed to a user are determined by the by the organization, active services, roles, and permissions. The items in the navigation bar are not the same for all Simplifile users.

new loan administration fee

Charged to cover services such as payment collection and disbursement and escrow fund management for a new loan.

non‑conforming loan (also called jumbo loan)

A loan larger than the allowable limit established through various federal government agencies (Fannie Mae, Freddie Mac, FHA, VA). Loan limits can vary by county.

non‑qualified mortgage

A non‑qualified mortgage does not meet the government requirements for a qualified mortgage, but the lender documents show how the buyer’s ability to repay the loan was determined. For more information, see Consumer Financial Protection Bureau (CFPB).

notary

A person authorized to act as an official witness, especially for signatures on legal documents.

notary fee

Paid for notary services.

note / promissory note

A signed statement that gives the borrower’s promise to repay a loan as well as the terms of loan repayment.

notice

The purpose of filing the notice is to secure legal claim to the land exclusive of any other potential claim.

notice of commencement

A document that formally sets the beginning date of a project, or the date on which a supplier first provided materials or labor.

‑ O ‑

offer

A written expression of interest to purchase. An offer becomes a contract when all terms are accepted by both seller and buyer.

open 30‑day charge account

A bill that requires a monthly payment.

origination charge / origination fee

An amount paid to the lender to create a mortgage; essentially, the lender’s commission, paid only if the loan is actually funded. On the good faith estimate (GFE), all fees are combined into one line labeled as the origination charge.

‑ P ‑

package

See Simplifile package (package).

package envelope (outdated)

Use “package”.

page

In the Simplifile application, a “page” is displayed in the right panel. The information is usually related to the item selected in the navigation bar or from a link in another page.

partner

At Simplifile, an entity who shares responsibility to complete eRecording and/or settlement responsibilities.

payment

For a borrower, the amount of any monthly payments used to decrease larger loans. This amount is used to help determine how large of a mortgage the borrower can have.

payoff

For a borrower, the amount required to close a debt before closing on a mortgage. A debt that will be paid off does not count toward total liability when determining how large of a mortgage the borrower can have.

payoff request fee

Charged by initial lender to provide a statement showing how much is still owed on a loan being refinanced.

personal loan

A loan typically used for large expenses that are not appropriate for a credit card, such as financing a car, renovating a home, or consolidating debt.

pest inspection fee

Covers an inspection to determine damage caused by pests such as termites or rodents.

PITI

Principal, interest, taxes, and insurance combined.

plat

A map, drawn to scale, showing the geographic boundaries of a specific property as well as its easements, access rights‑of‑way, and so forth. A legal description. May also refer to the actual piece of property.

plumbing inspection fee

Covers an inspection of the plumbing system in a building.

PMI

See private mortgage insurance (PMI).

points / closing points / discount points

Prepaid interest. Lenders typically offer a mortgage interest rate with no discount points, but can lower that rate if the buyer will pay an up‑front fee that gives the investor the same yield. Each discount point is equal to 1% of the loan amount borrowed.

portal

The gateway or main page of a web site that can allow access to the web site’s other pages.

Post Closing (Simplifile offering)

Simplifile’s offering that lets users view, access, and share post‑closing information and statuses on recorded documents and data in one central place.

power of attorney

A legal document that authorizes one person, called an agent, to act on behalf of another person, called a principal.

power of attorney preparation fee

Paid to prepare power of attorney documents.

power of attorney recording fee

Paid to record a power of attorney designation.

pre‑closing verification control fee

Paid to reimburse a lender who uses quality control, verification, or fraud detection tools.

preapproval

The process a lender goes through to verify a buyer’s financial ability to carry a mortgage, and of what amount.

preapproval letter

A preapproval letter lets a seller know that a lender is willing to loan money to the buyer for a property purchase, which lowers the risk that a deal will fall through. Sellers sometimes require preapproval.

prepaid

Items paid in advance of their due dates, such as property taxes and insurance premiums.

prepayment penalty

A fee sometimes charged if a borrower refinances or pays a mortgage in full before the final due date. The loan estimate should include information about such a penalty.

prequalification

A preliminary, non‑binding review of a buyer’s financial and credit information that can help a lender advise a borrower about how much of a mortgage he/she can afford. The information provided is not verified. The next step is preapproval.

principal

The amount of a loan that accrues interest. Generally, the amount financed, minus any principal payments made by the buyer.

private mortgage insurance (PMI)

Insurance a buyer pays to a private firm to insure the lender against loan default. It is usually required when a down payment is less than 20% of the home’s purchase price or, in a refinance, when the home equity is less than 20% of the home’s value.

processing fee

Charged by lenders or brokers to compile a loan application, including all necessary documents.

probate

The legal process of settling an estate after someone’s death, typically handled by lawyers and based on a will. In real estate, probate documents may be recorded to give notice regarding the ownership of property after the owner’s death. A home sold in probate court can be more expensive with more types of fees, and the sale can take more time than a traditional home purchase.

product management

The planning, forecasting, production, and marketing of goods or services. Usually consists of multiple projects.

project management

The planning, organization, and management of resources to complete a specific task.

property inspection waiver fee

Charged if a borrower chooses to not pay for a property inspection and appraisal.

property lien

property tax

The annual amount a property owner pays to the governmental authority where the property is located; usually based on the value of the property as determined by the governmental authority.

property tax status research fee

Paid to determine the status of a specific property’s tax status.

proration

In real estate, the process of dividing costs proportionately between the buyer and the seller. For example, property taxes are prorated so that the seller pays for the months before the sale, while the buyer pays for the months after the sale.

purchase and sales agreement (PSA) [also called sales and purchases agreement (SPA)]

The binding contract between the buyer and seller that finalizes the sale of a property.

‑ Q ‑

qualified mortgage

A loan with terms and restrictions that make it more likely that a borrower can afford the monthly payments. For more information, see Consumer Financial Protection Bureau (CFPB).

qualifying ratios

Tools a lender uses to determine a borrower’s ability to repay a loan.

The mortgage‑to‑income ratio (or front‑end ratio) compares the total housing expense with the borrower’s gross monthly income and typically has a maximum limit of 28%.

The debt‑to‑income ratio (also called back‑end ratio) compares the total housing expense plus any other consumer debt with the borrower’s gross monthly income and typically has a maximum limit of 35%. If one or both of the qualifying ratios is over the maximum, compensating factors such as a high FICO score or a low loan‑to‑value may still allow the borrower to take out the mortgage.

queue

A line or sequence of items waiting to be dealt with. At Simplifile, for example, packages wait in a queue to be recorded.

Quick Start

In Simplifile, a label for a county whose recorded documents are maintained short‑term in Simplifile’s system while the county prints a hard copy.

Quick Start + (also called Quick Start Plus)

In Simplifile, a label for a county whose recorded documents are sent via an upload queue in Simplifile to a land record system that stores documents long‑term.

quit claim deed

The quit claim is a legal document (deed) used to transfer interest in real estate from one person or entity (grantor) to another (grantee). ... Without warranties, it offers the grantee little or no legal recourse against the seller if a problem with the title arises in the future.

‑ R ‑

Radon

A radioactive gas that can cause lung cancer. Radon gas testing for real properties is available.

radon inspection fee

Covers an inspection of the amount of radon emissions in a building.

Real Estate Settlement Procedures Act (RESPA)

A Federal law that requires lenders to provide information to borrowers about loan costs, business practices, and provider relationships in an attempt to make the mortgage process more transparent and above reproach.

rate lock fee

Charged to hold an interest rate for a set number of days. The loan must close within the specified time period.

recipient

In Simplifile, a recording jurisdiction such as a county that receives documents for recording. Jurisdictions are integrated into Simplifile in the following primary ways:

• Quick Start jurisdictions log directly into Simplifile and record documents through the Simplifile application. After recording, the documents are maintained in our system but the county can print or save a copy for their records.
• Quick Start Plus jurisdictions log in and record documents through the Simplifile application, but after recording an upload queue in Simplifile lets the jurisdiction transfer recorded documents to a land records system. Land record systems provide long‑term storage of eRecordings and are typically connected with the county’s website.
• Vendor / 3rd Party jurisdictions maintain a separate software system (such as Property Info, Brown Tech, or Harris Recording) where Simplifile imports data entered by submitters into Simplifile. Each package receives a tracking number (RID) that both Simplifile and the vendor system use to track the package. The vendor system records and maintains the documents.

reconveyance (for release, satisfaction, or sanctification of mortgage)

The official proof, often a deed, which shows that a lien, mortgage, deed of trust, or similar item has been paid off and the related property is free and clear of that specific repayment obligation.

Reconveyance is a term used in some states which use deeds of trust as a mortgage on real property to secure payment of a loan or other debt. Reconveyance means the transfer of title by the trustee back to the borrower when the secured debt is fully paid.

recording fee

Money paid to the local governmental recording authorities to record a legal document and thus make it part of the public record.

redraw fee

Charged if changed circumstances require that documents be re‑created.

refinance

To pay off a loan on a specific property with the monies from a new loan so as to obtain a benefit such as a reduction of the interest rate, an extension of the length of time needed to complete the mortgage terms, or the conversion of an ARM to a fixed rate.

reinspection fee

Charged if a second inspection is needed, such as after construction is complete or when repairs or improvements have been made.

release

Provides documentation of release in a binding agreement.

At Simplifile, the act of pushing out a new version of software.

Remote ID (RID)

In Simplifile, the tracking number of a package submitted through a web service for a third party integration. It may be generated by either Simplifile or a third party service.

remote ink notary (RIN)

Remote ink notarization is a form of notarization that is statutorily authorized in two states (MT and SD) and was also authorized under emergency orders in a number of states during the coronavirus public health emergency. RIN allows the signer and notary to execute and notarize a paper document while leveraging audio‑visual communication technology for the “appearance” requirement. Specific requirements vary, but essentially the paper document must be transmitted between the parties for wet‑ink signatures. While IPEN and RON produce notarized electronic records, RIN produces notarized paper records.

remote online notarization (RON)

Remote online notarization (RON) is a newer option and is less widely accepted than in‑person electronic notarization (IPEN). RON doesn’t require the signer and notary to be in the same location and can typically be done via webcam. RON requires an identity verification process and secure video communication that is stored for a specified duration. Depending on the state, there may be additional rules. Many states require the RON technology vendor be registered with the secretary of state. RON is a newer option and is less widely accepted than IPEN. RON doesn’t require the signer and notary to be in the same location and can typically be done via webcam. RON requires an identity verification process and secure video communication that is stored for a specified duration. Depending on the state, there may be additional rules. Many states require the RON technology vendor be registered with the secretary of state.

rent with option to buy / rent to own / lease purchase

A contract between a tenant and an owner where part of the monthly rent payments are applied to the potential purchase price of the property. When a pre‑determined amount has been paid, the buyer has the option to buy the property.

reserves

1. Money mortgage companies collect in advance to pay items such as taxes, HOA dues, and insurance premiums.

2. Extra money collected by HOAs as a buffer against future expenses.

RESPA

See Real Estate Settlement Procedures Act (RESPA).

restrictions / restrictive covenants [or conditions, covenants, and restrictions (CC&R)]

Limits in a real estate contract such as a mortgage or a deed that require the owner of a property to follow certain rules and conditions. Such covenants are usually meant to help maintain the value and integrity of the property. Restrictions can be imposed by a builder, developer, neighborhood association, or HOA.

revolving credit

A specific type of line of credit where the amount of credit resets after payments are made.

RID

See Remote ID (RID).

remote ink notary (RIN)

Remote ink notarization is a form of notarization that is statutorily authorized in two states (MT and SD) and was also authorized under emergency orders in a number of states during the coronavirus public health emergency. RIN allows the signer and notary to execute and notarize a paper document while leveraging audio‑visual communication technology for the “appearance” requirement. Specific requirements vary, but essentially the paper document must be transmitted between the parties for wet‑ink signatures. While IPEN and RON produce notarized electronic records, RIN produces notarized paper records.

roof inspection fee

Covers an inspection of the roof.

RON (Remote online notarization)

See remote online notarization (RON).

‑ S ‑

sales and purchase agreement (SPA)

See purchase and sales agreement (PSA) [also called sales and purchases agreement (SPA)].

satisfaction of mortgage (or satisfaction)

A deed of reconveyance is a document which transfers title in the property back to the borrower from the trustee and it is used to acknowledge that the borrower has fully paid what he or she owed under a deed of trust. A Satisfaction of Mortgage is used to acknowledge the same of a mortgage agreement.

second home

Owned real estate that is not a primary residence, such as a vacation home.

second mortgage

A loan made while a first mortgage is still in effect that is typically for a lower dollar amount and at a higher interest rate. In the case of a default, the first mortgage is paid off first.

second position mortgage lien

A second mortgage. First mortgages get priority over second position loans.

Secretary of State (SOS)

The title Secretary of State or State Secretary is commonly used for senior or mid‑level posts in governments around the world. The role varies between countries, and in some cases, there are multiple secretaries of state in the government.

security instrument

In the United States, a deed of trust or a mortgage.

seller financing / seller take‑back financing (or owner financing)

When a seller finances a loan instead of the buyer using a bank or other traditional sources to borrow money to purchase a property. Payments and interest are similar to a typical mortgage.

senior mortgage

The primary lien against a property, which has priority over any other mortgages, liens, or other claims on a property.

septic inspection fee

Charged to determine the operability of an installed septic system.

settlement (also called closing, escrow closing, and real estate closing)

In real estate, the process that occurs when all parties involved in the purchase or refinance of real property execute legally binding documents that pass the real property title from seller to buyer and the seller is paid.

settlement fee

Paid to the settlement company for the loan settlement or closing transaction.

sheriffs deed

A deed that gives ownership rights in property bought at a sheriff's sale. A sheriff's sale is a sale conducted by a sheriff upon order of a court after a failure to pay a judgment. Often, property that is involved in a mortgage foreclosure is subject to being sold at a sheriff's sale.

Simplifile application

Simplifile package (package)

A Simplifile package is an electronic envelope that holds digital versions of the legal instruments or documents to be sent to a recording jurisdiction.

smoke detector inspection fee

Covers an inspection of the smoke detectors in a building.

SPA

See purchase and sales agreement (PSA) [also called sales and purchases agreement (SPA)].

special assessment

A tax or fee paid to a HOA or local government for improvements to real property.

streamline access user

An settlement agent that has been enabled by the Simplifile Integration team (at the request of the lender) to use the streamline access feature.

subject to mortgage

When a buyer makes the payments on an existing mortgage but is not personally liable to make the payments. If the buyer stops making payment, he or she loses the property and all the money paid. This form of purchase is most often used in a distress sale or as an attempt to save the mortgage holder from foreclosure. Compare to assumption of mortgage.

submitter

In Simplifile, the person or entity that sends documents in electronic packages to be recorded.

subordination agreement

An arrangement that gives the interest of one party prevalence over the interest of another. For example, a subordinated mortgage takes a secondary position to some other document, such as a first mortgage. Any subordinated mortgage is paid only after the mortgages with priority are paid.

substitution of trustee and full reconveyance

Dual document used to replace the current trustee who then cancels the debt (reconveyance). Many counties charge more for this document because it does the work of two separate documents.

substitution

When one party to a document is replaced by another party but the document is not modified. Survey. The measurement of a parcel of real estate by a licensed surveyor that shows specific details about the shape, size, location, and physical description of the property, including the location of any improvements.

sweat equity

An increase in value earned when an owner personally works to upgrade or improve a property.

swing loan (see bridge loan)

See bridge loan (also called swing loan).

‑ T ‑

tag ‑ mini status

Mini status tags are small status icons attached to other icons for a specific function, in this example, disbursement status for a fee. These mini status tags are used when there is limited space that precludes the use of labels. The combination of two icons allows contextual status in a compact space. Mini status tags are used sparingly.

tag ‑ removable and add‑able assignment

Removable and add‑able assignment tags are is similar to a multi‑select input but may be used when assignments or tagging is limited to a few tags. The tag to add an additional tag is placed in the last position.

tag ‑ removable or editable

Removable or editable tags can be removed or edited by the clicking on them. If you move and hold the cursor over a removable or editable tag, a tooltip is displayed describing the result of a click interaction. Removable and editable tags may use icons.

tag ‑ row status

Row status tags may be used in the first column of a table row to indicate a status for the row. The use of these tags assumes that the row is primarily focused on one attribute, such as a specific fee or input.

These may overlap in functionality with general status tags.

tag ‑ status

Status tags can be used for any item needing a strong visual indicator of status. Clicking on status a tag may launch a modal with more detail about the status or navigate the user to another page. If you move and hold the cursor over a status tags, a tooltip is displayed describing the result of a click interaction. Status tags do not include icons.

tax deed

A legal document that grants property title to a government entity or purchaser when the property owner has defaulted by not paying taxes.

tax lien

A claim against a property for unpaid taxes. Imposed to secure the payment of any type of unpaid tax.

tax‑related service fee

Charged if a third‑party monitors or handles the payment of property tax to ensure that payments are made on time.

taxes

Local, state, or federal taxes that are due.

Ten Thirty One Exchange (1031 Exchange)

A real estate exchange of like‑kind properties that defers capital gains taxes. Allowed under the U.S. Internal Revenue Code, Section 1031.

temporary buydown administration fee

Charged by a lender who manages a temporary buydown.

temporary buydown points

Paid to temporarily lower the interest rate on a mortgage.

term

In real estate, the length of time it takes to pay a mortgage in full. See also amortization.

TILA‑RESPA Integrated Disclosure (TRID) (also called the Know Before You Owe Rule)

A rule issued by the Consumer Financial Protection Bureau designed to help borrowers understand the terms of their home financing transactions. It combines and simplifies consumer disclosure documents.

third‑party county

A county that uses another vendor's (the third party) software that we have integrated or will integrate with Simplifile is called a third‑party county. In third‑party counties, Simplifile sends the documents to the county and an integration manages the transactions between Simplifile and the vendor's software.

third position mortgage lien

A third mortgage. First mortgages get priority over second position loans; second mortgages get priority over third position loans.

title

In real estate, the legal evidence of the right to own, use, and dispose of property.

title abstract

Similar to a title search, but an abstract researches all the way back to original land grants.

title certification fee

Charged to research, create, and certify a record of the ownership of a piece of land (a title abstract).

title closing fee

Paid to the title company for handling the loan closing.

title closing protection letter fee

Paid to title insurance underwriters for a document laying out the responsibility for negligence, fraud, and errors in closings they perform.

title commitment

A report issued by a title insurance company or its agent that commits the title insurance company to issue the form of policy designated in the commitment when the requirements set forth in the commitment are met. A title binder fee is paid for the preparation of this report.

title company

A business paid to check and insure a property title against liens, ownership claims, and other title problems.

title document preparation fee

Paid to title companies for document preparation and ownership transfer.

title endorsement fee

Paid to title companies for preparation of any necessary endorsements related to the title policy.

title examination fee

Paid to title companies for a title search and title abstract preparation.

title final policy short form fee

Charged when the American Land Title Association (ALTA) short form title policy is used instead of the standard policy.

title insurance (also called loan policy, lender's policy, and mortgagee's policy)

A policy usually purchased by the buyer that protects against claims that may arise against a property’s title. The issuer performs a title search in the county records.

The final title policy is a legal and binding policy issued at closing, as opposed to a title certificate or other preliminary title document.

The owner’s insurance protects the buyer as long as the buyer owns the property.

The mortgage insurance is good until the mortgage is paid off, and covers the lender’s interest, not the owner’s.

title insurance binder fee

Paid to title companies to cover the title commitment.

title insurance fee

Paid for a policy that guarantees that an owner has title to a property. Also insures against errors in the title search.

title lenders coverage premium

Paid to title companies to protect the lender if clear ownership of a property comes into question.

title notary fee

Charged for notary services proved by the title company.

title search (also called examination of title and title exam)

The research and inspection of the ownership history of and public records regarding a specific property to verify the chain of ownership and discover any unsatisfied claims against the property.

title services sales tax

Charged if the recording jurisdiction or state requires a tax on title services.

title underwriting issue resolution fee

Paid to title companies for research and resolution of title issues.

tolerance

Tolerance is the amount of variation allowed in a fee from the loan estimate to the time of closing.

There are three categories:

• charges that cannot increase
• charges that, when totaled, cannot increase more than 10%
• charges that can change.

tolerance cure

A tolerance cure happens when a fee violates the tolerance amount and the borrower is refunded the amount by which the tolerance was exceeded.

transfer tax

A payment made by the seller that is required for the transfer of real property ownership.

TRID

See TILA‑RESPA Integrated Disclosure (TRID) (also called the Know Before You Owe Rule).

trust

Property interest where one party (the trustor or borrower) gives another party (the trustee) the right to hold property title for the benefit of a third party (the beneficiary).

trust deed

A notice of the release of merchandise to a buyer from a bank, with the bank retaining the ownership title to the released assets. A trust deed (also called transfer document)A legal document that transfers ownership or title to a property from one person or entity to another. Each type of deed (for example, a disclaimer deed, grant deed, warranty deed, fee simple deed, transfer deed, or quitclaim deed) has some legal differences but they all convey property ownership. Sellers and buyers sign the deed during closing. It is then recorded.

Truth in Lending Act

A set of federal guidelines that are part of the loan disclosure, meant to protect borrowers. The Act requires lenders to disclose in writing all terms, fees, the APR, and borrowers’ rights when a borrower applies for a loan and again at the loan closing.

‑ U ‑

UCD

See uniform closing dataset (UCD).

Uniform Commercial Code (UCC) Finance Statement

A legal document that places or releases a lien on personal property such as fixtures, minerals, timber, crops, or consumer goods attached to a piece of real estate. For example, if a bank grants a loan to a manufacturing company using the building and equipment as collateral, the bank would put a mortgage on the building and a UCC lien against the equipment. UCCs are typically maintained in the offices of each state’s Secretary of State.

UCC Financing Statement is an abbreviation for Unified Commercial Code‑1 which is a legal form that a creditor files to give notice that it has or may have an interest in the personal property of a debtor (a person who owes a debt to the creditor as typically specified in the agreement creating the debt.

underwriter

A trained professional who determines whether a loan is approved, approved with conditions, or denied, based on the amount of risk the lender is willing to accept.

underwriting fee

Charged by a lender to evaluate whether a borrower qualifies for a mortgage loan. The fee may be manual, or automated if the lender uses a special system for the evaluation.

uniform closing dataset (UCD)

A common industry‑defined compilation of information directed by the Federal Housing Finance Agency in an attempt to standardize the information required for loan estimates and closing disclosures. It should follow MISMO 3.3 standards.

Uniform Electronic Transactions Act (UETA)

The Uniform Electronic Transactions Act (UETA) is one of the several United States Uniform Acts proposed by the National Conference of Commissioners on Uniform State Laws (NCCUSL). Forty‑seven states, the District of Columbia, and the U.S. Virgin Islands have adopted the UETA. Its purpose is to harmonize state laws concerning retention of paper records (especially checks) and the validity of electronic signatures.

Uniform Real Property Electronic Recording Act (URPERA)

The Uniform Law Commission (ULC), which also created the model Uniform Commercial Code enacted by every state, drafted and approved in 2004 the Uniform Property Electronic Recording Act (URPERA).

For more information, see the State‑by‑State Guide to URPERA Statutes, Commission Reports and Administrative Codes ‑ chart updated 03/19/2015.

unsecured home improvement loan ‑ installment

Lump sum borrowed expressly for repair or addition to an existing home. Paid off using several equal payments.

unsecured home improvement loan ‑ revolving

Monies borrowed as needed, expressly for repair or addition to an existing home. Has a set credit limit, but the loan can be renewed as it is paid down.

USDA Home Loan / USDA Rural Development Guaranteed Housing Loan (also called farm home loan and rural development loan)

A 100% government loan (no down payment) available to suburban and rural home buyers who meet the qualifications. Mortgage insurance is required.

U.S. Department of Housing and Urban Development (HUD)

Created in 1965, this cabinet‑level agency is responsible for enforcing the federal Fair Housing Act and oversees federal programs such as urban renewal, public housing, rehabilitation loans, FHA subsidy programs, and water and sewer grants. Among HUD’s goals: to create quality affordable homes for everyone, strengthen the housing market, and build inclusive and sustainable communities that are discrimination‑free. The Office of Interstate Land Sales Registration, the Federal Housing Administration (FHA) and the Government National Mortgage Association (GNMA) are all under HUD.

‑ V ‑

VA funding fee

A set amount added to every VA purchase loan or refinance, dependent on factors such as the borrower’s service, the down payment, and whether the veteran has a previous VA loan.

VA mortgage

A loan of up to 100% of the cost of a home made to veterans.

vendor

An entity that is paid for goods or services provided. Simplifile is a vendor of eRecording and settlement services. For some counties, Simplifile sets up integrations with third‑party vendors the county specifies and transfers documents to these vendors as XML files through a queue system.

verification of assets fee

Paid to verify assets disclosed by a borrower as part of a loan application.

verification of employment fee

Paid to verify employment disclosed by a borrower as part of a loan application.

verification of income fee

Paid to verify income reported by a borrower as part of a loan application.

verification of residency status fee

Paid to verify resident status reported by a borrower as part of a loan application.

verification of tax return fee

Paid to verify financial information reported on tax returns supplied by a borrower during loan application.

verification of taxpayer identification fee

Paid to verify social security numbers or tax numbers supplied by a borrower during loan application.

view ‑ card view

Card views are a companion to list views (tables) for content. They are effective at surfacing data or content that would be difficult in a table.

Sorting

If sorting is needed, this functionality can be provided by a dropdown field positioned above the cards.

Navigation

The primary navigation from the card to the data represented by the card (a loan or recording package) is contained in the header of the card.

Actions

If the user is confident in taking a action of the loan or package at this level, the right‑most column has actions they can take.

If more that two actions are likely to be taken from the card view, use a control for the primary action and a "More Actions" control for other actions. More Actions is presented as a pop‑up menu.

Content

Reference data is useful as context.

Use whatever content is needed for the workflow. This may change from service to service, role to role, or status to status.

Analytics

Card view usage should be analyzed for elements that are not used. If elements are not useful, they should be removed.

view ‑ list view (table)

List views or table are a companion to card views for content.

‑ W ‑

webcam

A digital camera whose images are transmitter, often in real time, over the World Wide Web.

warranty

In real estate, a promise by the grantor (seller) of real property that, for example, the property title is clear or all building codes have been met. The warranty deed assures that the grantor has clear title and can legally transfer the property to the buyer.

water testing fee

Covers a water quality test.

well inspection fee

Covers inspection of any wells on the property.

window

In the Simplifile application, a “window” is a pop‑up form or message that displays over a page which must be completed or closed before you can return to the page. Windows usually contain fields that can be edited. For example, the Simplifile Add User wizard uses multiple windows. Sometimes windows contain only information. Close windows by completing the action, clicking the window’s Close button (  ), or clicking outside of the window’s borders.

NOTE: In the Simplifile documentation, we use "window" place of "dialog" or "dialog box".

wire amount

Funds transferred from a financial institution as payment for a debt, such as a real estate down payment.

wire transfer fee

Charged if loan‑related funds are wired.

wizard

In the Simplifile application, a “wizard” is a presentation of one or more windows where you enter information to complete an action or task (such as adding a user).

wraparound mortgage / wrap / piggyback mortgage

Typically made when an existing mortgage cannot be paid off. The new loan adds funds to the unpaid first mortgage amount. The new loan is larger, and often has a higher interest rate. Payments are made to the new lender, who makes payments on the original loan.

‑ X ‑

XML

XML is the common abbreviation for Extensible Markup Language. It is set of rules programmers use to describe data in such a way that it is easy to store and transport across the Internet and on diverse computer platforms.

‑ Y ‑

yield

The amount a lender makes from loaning money.

‑ Z ‑

‑ 2 ‑

203K architectural and engineering fee

Paid for architectural and engineering work. Dependent on the scope of services for the type of project. Generally do not apply to a streamline loan.

203K consultant fee

Paid for an on‑site visit before the appraisal and the preparation of a specification of repairs. May also prepare a feasibility study. The consultant must be HUD‑approved. Optional on streamline loans.

203K discount on repairs

Points on the portion of a mortgage specified for repairs.

203K inspection fee

Ensures that the repairs are done to FHA standards.

203K permits

Covers any required local city or county agency permits.

203K supplemental origination fee

1.5% of the loan or $350, whichever is higher, to cover the extra work needed to est up and manage the escrow account.

203K title update

Protects the title from builder liens for disputed pay. Ensures the that FHA loan remains in first position on the title.

NOTE: 203k loan fees are in addition to standard closing costs.