Mortgage Modification
A loss mitigation option that allows a borrower to refinance and/or extend the term of the mortgage loan and thus reduce the monthly payments.

PMI Private Mortgage Insurance
Privately-owned companies that offer standard and special affordable mortgage insurance programs for qualified borrowers with down payments of less than 20% of a purchase price.

Discount point
Normally paid at closing and generally calculated to be equivalent to 1% of the total loan amount discount points are paid to reduce the interest rate on a loan.

Origination fee
The charge for originating a loan is usually calculated in the form of points and paid at closing.

Fair Housing Act
A law that prohibits discrimination in all facets of the homebuying process on the basis of race color national origin religion sex familial status or disability.

Survey
A property diagram that indicates legal boundaries easements encroachments rights of way improvement locations etc.

Freddie Mac Federal Home Loan Mortgage Corporation
A federally-chartered corporation that purchases residential mortgages securitizes them and sells them to investors this provides lenders With funds for new homebuyers.

Earnest money
Money put down by a potential buyer to show that he or she is serious about purchasing the home it becomes part of the down payment if the offer is accepted is returned if the offer is rejected or is forfeited if the buyer pulls out of the deal.

Special Forbearance
A loss mitigation option where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments.

FHA Federal Housing Administration
Established in 1934 to advance homeownership opportunities for all Americans assists homebuyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower defaults this encourages lenders to make loans to borrowers who might not qualify for conventional mortgages.