Automated Underwriting
Definition of "Automated Underwriting"
A computer-driven process for informing the loan applicant very quickly, sometimes within a few minutes, whether the application will be approved, denied, or forwarded to an underwriter. The quick decision is based on information provided by the applicant that is subject to later verification and other information obtained electronically, including information about the borrower's credit history and the subject property.
Popular Mortgage Terms
An ARM on which the lender has the right to change the interest rate at any time, for any reason, by any amount, subject only to a requirement that the borrower be notified in advance. The ...
Refinancing that omits some of the standard risk control measures and is therefore quicker and less costly. The rationale for streamlined refinancing is that, while it is an entirely new ...
The house in which the borrower will live most of the time, as distinct from a second home or an investor property that will be rented. ...
Compiling and maintaining the file of information about the transaction, including the credit report, appraisal, verification of employment and assets, and so on. Mortgage brokers usually ...
A borrower who doesn't pay. ...
A rate lock, plus an option to reduce the rate if market interest rates decline during the lock period. ...
A payment made after the grace period stipulated in the note, usually 10-15 days. ...
A mortgage lender that sells all the loans it originates in the secondary market. ...
The number of months for which the initial interest rate holds on an ARM. ...
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