Glossary of Mortgage Terms

Mortgage reinstatement is when a homeowner pays all missed payments, late fees, and related costs in a lump sum to bring a delinquent mortgage back to current status and stop the foreclosure process.

After you close on your home loan, a mortgage servicing company takes care of it. They handle monthly payments, escrow accounts, and borrower support for the loan's owner.

Mortgage servicing rights give you the right to manage the day-to-day operations of a home loan, such as collecting payments and managing escrow for the loan's owner.

A mortgage transfer lets a new borrower take over an existing home loan from the original borrower. The new borrower keeps the same interest rate, balance, and repayment terms.

Mortgage underwriting is the process a lender uses to verify a borrower’s finances, creditworthiness, and property value before deciding whether to approve a home loan application

A government-sponsored enterprise like Fannie Mae, Freddie Mac, or Ginnie Mae issues or backs an agency MBS. This gives investors a safety net that is linked to the government.

A mortgagee is the company (bank, credit union or financial institution) or individual that gives you money to buy or refinance a home. Until you pay off the loan, they also have a legal claim to the property.

A mortgagee clause is a part of your homeowners insurance policy that protects your lender's financial interest in your property if it gets damaged or lost.

A mortgagor is the person or entity that borrows money from a lender to buy real estate, pledging the property as collateral until the loan is fully repaid.

A multifamily home is a type of residential property that has two or more separate housing units under one roof or on a single lot. Each unit has its own kitchen and entrance.