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GLOSSARY OF TERMS

South Florida Title Insurers prides themselves on being a valuable source of information to clients and realtors. In the ever-changing real estate and title industry, there are many specific terms which can be unfamiliar. The team has compiled a list of commonly used phrases that one might come across during the title insurance, short sale, or real estate process. As a continued source of support, the Jupiter, Florida office is always readily available to provide assistance and answer any questions!

AIR

AIR: Adjustable Interest Rate

Amount Financed

Amount Financed: The loan amount available after payment of the upfront charges.

AP

AP: Adjustable Payment

APR

APR: Annual Percentage Rate 1s the borrower’s costs of the loan term expressed as a rate. This is not their interest rate.

Application

Application (for purposes of the IMO requirements): The submission of a consumer’s financial 1nformat1on for the purposes of obtaining an extension of credit, and consists of the subm1ss1on of the consumer’s name; the consumer’s income; the consumer’s social security number to obtain a credit report; the property address; an estimate of the value of the property; and the mortgage loan amount sought.

Business Day

Business day: Defined differently for the Loan Estimate (LE} vs. Closmg Disclosure rcD)· For the LE. a business day IS a day on which the creditor’s offices are open to the public for carrying out substantially all of its business functions. For the Closing Disclosure (CD) and rev1s1ons or corrections, a business day means all calendar days except Sundays and legal public holidays specified m 5 U.S.C. 6103(a) such as New Year’s Day, the Birthday of Martin Luther King, Jr., Washington’s Birthday. Memorial Day, Independence Day, Labor Day, Columbus Day,Veterans Day, Thanksgiving Day, and Christmas Day.

CD

CD: Closing Disclosure form designed to provide disclosures that will be helpful to consumers in understanding all of the costs of the transaction. This form will be given to the consumer three (3) business days before closing and replaces the HUD-1 and final Truth m Lending {Till disclosure on impacted transactions.

CFPB

CFPB: Consumer Financial Protection Bureau (CFPB}; an entity created by the Dodd-Frank Act.

Closing Date

Closing Date: The date of consummation for the Closing Disclosure.

Closing Disclosure (CD)

Closing Disclosure (CD): Closing Disclosure form designed to provide disclosures that will be helpful to consumers in understanding all of the costs of the transaction. This form will be given to the consumer three (3) business days before closing and replaces the HUD-1 and final Truth m Lending {Till disclosure on impacted transactions.

Consumer

Consumer: Borrower/Buyer

Contact our Title Insurance Professionals

Do you have additional questions about the terminology, the process or title insurance? Contact our Florida office today where our team of professionals are available to assist you in your transaction. Contact South Florida Title Insurers at (561) 804-7677.

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Consummation

Consummation: Occurs when the consumer becomes contractually obligated to the creditor on the loan, not, for example, when the consumer becomes contractually obligated to a seller on a real estate transaction. The point m time when a consumer becomes contractually obligated to the creditor on the loan depends on applicable State law. Consummation is not the same as closing or settlement.

Date Issued

Date Issued: The date the disclosures (Loan Estimate and Closing D1sclosurel are delivered to the consumer.

Disbursement Date

Disbursement Date: The date the amounts are to be disbursed to a consumer and seller in a purchase transaction or the date funds are to be paid to the consumer or a third party ,n a transaction that is not a purchase transaction.

Finance Charge

Finance Charge: The dollar amount the loan will cost the consumer.

Integrated Mortgage Disclosure (IMO)

IMO: Integrated Mortgage Disclosure (New forms: Loan Estimate (LE) and Closing Disclosure (CD)). The New Rule and Forms apply to most closed-end consumer mortgage loans. It does not apply to home equity hnes of credit, reverse mortgages, or mortgage loans secured by a mobile home or by a dwelling that is not attached to real property. The new rule does not apply to loans made by a creditor who makes five or fewer mortgages in a year.

Issue Date

Issue Date on LE and CD: The date you deliver or place in the mail the applicable disclosure.

Loan Estimate (LE)

Loan Estimate (LE): Form designed to provide disclosures that will be helpful to consumers in understanding the key feature. costs and risks of the mortgage loan for which they are applying. Initial disclosure to be given to the consumer three (3) business days after application and replaces the GFE and early TIL

MIC

MIC: Mortgage Insurance Case Number

MISMO

MISMO: Mortgage Industry Standards Maintenance Organization. MISMO sets standards of how to format data sent to another party for both res1dent1al and commercial property transactions in US markets. By promoting improved data consistency, MISMO aims to reduce costs and increase transparency while promoting confidence m mortgages as an asset class for investors. Ultimately, MISMO standards should deliver cost savings to consumers.

MISMO Compliant

MISMO Compliant: Software vendor developed their platform using the MISMO data format standards to send data to other parties.

NMLSR ID

NMLSR ID: Nationwide Mortgage Licensing System and Registry ldentif1cat1on Number

New Rule

New Rule: The TILA-RESPA rule consolidates four ex1st1ng disclosures required under TILA and RESPA for closed-end credit transactions secured by real property into two forms: a Loan Estimate (LE) that must be delivered or placed m the mail no later than the third business day after receiving the consumer’s application, and a Closing Disclosure (CD) that must be provided to the consumer at least three business days pnor to consummation.

RESPA

RESPA: Real Estate Settlement Procedures Act

TIL

TIL: Truth in Lending

TILA

TILA: Truth m Lending Act

TIP: Total Interest Paid

TIP: Total Interest Paid. The total amount of interest the borrower will pay over the loan term as a percentage of the loan amount.

Total Payments

Total Payments: Total amount paid after payment of all pnnc1pal, interest, mortgage insurance and loan costs as scheduled.

UCO: Uniform Closing Dataset

UCO: Uniform Closing Dataset. Freddie Mac and Fannie Mae, GSEs lGovernment Sponsored Enttt1es) have prov,ded a common industry dataset called the Uniform Clo5mg Dataset (UCO) to support the Consumer Financial Protection Bureau’s (CFPB) Closing Disclosures. Our Underwriter, First American Title, recently pubhshed the UCO MISMO-mapping document. Please note; it’s important that lenders and vendors develop a plan for how they will implement the UCO. Using the UCO to implement the CFPB’s Closing Disclosure could save you time and resources.

Variance

Variance: Previously and also known as Tolerances

Written List of Providers

Written list of Providers: A written list of service providers given to the consumer by the Creditor or Mortgage Broker for a settlement service provider that the consumer is permitted to shop for.

WHAT OUR CLIENTS ARE SAYING

“I just wanted to thank all of you for your excellent & professional service regarding our closing. It certainly wasn’t a simple closing and I appreciate your extra efforts to make it happen yesterday.”

– Alex Perez, Buyer

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