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, “Select the Save button”.

• 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, “Select the Register More Counties button.” The word “button” may or may not be included in the text. For example, “Select the Register More Counties button”.

• An icon button may be only an icon that initiates an action. For example the Edit 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. For example, Select the Edit   button, the Menu (ellipsis) button, and the Add 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.

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

A 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.

county

In Simplifile, a recording county (or jurisdiction or recipient) receives documents for recording. Counties (or 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 county (or 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.

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 component and Lender component 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 component and Lender component 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 counties (or jurisdictions) 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.

kind of instrument (KOI)

Refers to the type of document to be recorded, such as a deed or an affidavit.

KOI

See kind of instrument (KOI).

Land Records Management System (LRMS)

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

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.

lead inspection fee

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

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).

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 dropdown button or the Menu (ellipsis) button or dropdown lists are selected.

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%.

multifactor authentication (MFA)

See two-factor authentication (2FA)

navigation menu

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

The navigation menu items displayed to a user are determined by the by the organization, active services, roles, and permissions. The items in the navigation menu 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.

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.

package

See Simplifile package (package).

package envelope (outdated)

Use “package”.

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.

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.

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 selecting them. If you move and hold the cursor over a removable or editable tag, a tooltip is displayed describing the result of a select 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. Selecting 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 select 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 county (or 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.

two-factor authentication (2FA)

A security process that requires two different forms of identification to verify a user’s identity before granting access to a system, account, or resource. Typically, this involves something the user knows (e.g., password) and something the user has (e.g., a mobile device or security token).

See multifactor authentication (MFA)

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

A fee paid to verify assets disclosed by a borrower as part of a loan application.

verification of employment fee

A fee paid to verify employment disclosed by a borrower as part of a loan application.

verification of income fee

A fee paid to verify income reported by a borrower as part of a loan application.

verification of residency status fee

A fee paid to verify resident status reported by a borrower as part of a loan application.

verification of tax return fee

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

verification of taxpayer identification fee

A 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 dropdown list.

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.

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.

(No entry)

No entires

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.