Frost Mortgage Banking Group Glossary of Terms

An improvement that intrudes illegally on another’s property.

Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.

A person who signs ownership interest over to another party. Contrast with co-maker.

A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage.

An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.

The account in which a mortgage servicer holds the borrower’s escrow payments prior to paying property expenses.

A special housing initiative that offers several different ways for employers to work with local lenders to develop plans to assist their employees in purchasing homes.

The right of a government to take private property for public use upon payment of its fair market value. Eminent domain is the basis for condemnation proceedings.

Normal annual income including overtime that is regular or guaranteed. The income may be from more than one source. Salary is generally the principal source, but other income may qualify if it is significant and stable.

An appraiser’s estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.

A right of way giving persons other than the owner access to or over a property.

A deposit made by the potential home buyer to show that he or she is serious about buying the house.

Effective Age

Effective Gross Income

Eminent Domain

Employer-Assisted Housing

Encroachment

Encumbrance

Endorser

Equal Credit Opportunity Act (ECOA)

Equity