Second Trust Deed
A loan on a property that was made after the first deed.

Secondary Mortgage Market
The market where lenders and investors buy and sell existing mortgages or mortgage-backed securities, thereby providing funds for additional mortgage lending.

Servicing
A mortgage banking function following loan closing which includes the receipt of payments, customer service, escrow administration, investor accounting, collections, and foreclosures.

Settlement or Closing
The meeting between the seller and buyer when the property legally changes hands.

Settlement Fees or Closing Costs
Fees paid to effect the closing of a mortgage (e.g., origination fee, discount points, title insurance fees, survey fees, and attorney's fees).

Subordination Agreement
An agreement by which an encumbrance is made subject to a junior encumbrance; a lender with a loan in second position agrees to stay in second position on the property, even when the loan in first position has been rewritten or refinanced.

Tax Service
Required by the lender to assure that all tax billings are paid on the right tax parcel. FHA and VA do not allow the borrower to pay the tax service fee.

Transfer Fee
Fees a buyer or seller pays a municipality to defray the cost of recording a transfer of ownership

Title
The right to ownership in real estate, which is transferred by a deed. Evidence of ownership in real estate.

Title Insurance
A contract by which the insurer agrees to pay the insured a specified amount for any loss caused by defects of title to real estate.

Title Search
The process of checking all the records relating to the title to see that it doesn't have any liens or claims against it that would keep it from being transferred.

Transfer Fee
Fees a buyer or seller pays a municipality to defray the cost of recording a transfer of ownership.

Underwriting
The analysis of the risk involved in making a mortgage loan to determine whether the risk is acceptable to the lender. Underwriting involves the evaluation of the property as outlined in the appraisal report, the borrower's ability to repay the loan and the application of criteria specified by an investor.

Unsecured Loan
Personal loans requiring no security, such as those borrowed from a friend or family member VA Loan A loan guaranteed by the Department of Veterans Affairs.

VA Loan
A loan guaranteed by the Department of Veterans Affairs.