Subordination Policy
Definition of "Subordination Policy"
The policy of a second mortgage lender toward allowing a borrower to refinance the first mortgage while leaving the second in place.
Popular Mortgage Terms
Standards imposed by lenders as conditions for granting loans, including maximum ratios of housing expense and total expense to income, maximum loan amounts, maximum loan-to-value ...
A government-owned or -affiliated lender that makes home loans directly to consumers. With minor exceptions, government in the U.S. has never loaned directly to consumers, but housing banks ...
A provision of a loan contract stipulating that if the property is sold the loan balance must be repaid. A mortgage containing a due-on-sale clause is not assumable. This prevents a home ...
On an ARM, the assumption that the value of the index to which the interest rate is tied does not change from its initial level. ...
Total costs charged to the borrower that must be paid at closing, by the borrower, the home seller, or the lender. In dealing directly with a lender, settlement costs can be divided into ...
A lender that holds the loans it originates in its portfolio rather than selling them. ...
The most recently published value of the index used to adjust the interest rate on an indexed ARM. ...
A lender who offers mortgage loans directly to the public. ...
When a borrower has difficulty making the scheduled payment. Position of the Lender: A good place to start is by understanding the position of the lender. A game plan for survival ...
Have a question or comment?
We're here to help.