D Flashcards
DEBT-TO-INCOME RATIO
The relationship, expressed as a percentage, between a borrower’s monthly obligations on long-term debts and his or her gross monthly income. See also Back-End Ratio, Front-End Ratio.
DEED
A written instrument, properly signed and delivered, that conveys title to real property.
DEED-IN-LIEU OF FORECLOSURE
An arrangement in which the mortgagor (borrower) conveys all interest in the property to the mortgagee (lender) in an effort to satisfy a loan that is in default and avoid foreclosure proceedings. See also Conveyance, Foreclosure.
DEED OF TRUST
In many states, a document that is used in place of a mortgage to secure the payment of a note.
DEFERRED INTEREST
When a mortgage is written with a monthly payment that is less than required to satisfy the note rate, the unpaid interest is deferred by adding it to the loan balance. See also Negative Amortization.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)
The federal agency responsible for housing programs in the United States. Also has regulatory authority for a number of housing-related federal statutes.
DEPARTMENT OF VETERANS AFFAIRS (VA)
An independent agency of the federal government which oversees programs and services for veterans. The VA guarantees long-term, low-, or no-down payment mortgages to eligible veterans.
DISCOUNT POINT
A fee paid to a lender at closing and used to prepay a portion of the interest on a loan. Discount points are charged so that the note rate can be lower than the prevailing market rate.
DISCOURAGEMENT
An oral or written statement in advertising or communicated by any other means that discourages an individual from applying for credit on a prohibited basis. See also Prohibited Basis.
DUAL COMPENSATION
The prohibited practice of receiving direct compensation from a consumer and additional indirect compensation from a creditor that funds mortgage loans.
DUE-ON-DEMAND CLAUSE
A provision of a mortgage or deed of trust that allows a lender to demand immediate payment of the balance of the loan if specific criteria relating to fraud and misrepresentation are met.
DUE-ON-SALE CLAUSE
A provision in a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home.
