Why terminology is important for mortgage industry

Jessica

Experts believe that the best way to know any industry is to know it from the very basics. Knowledge of terminology can help a lot in this respect. What terminology signifies is a collection of related terms and concepts that gives an idea of the fundamentals of the industry. Without a fair knowledge of the basics of the industry, you will hardly know how the industry is going to serve your purpose.

The mortgage industry covers up a wide arena as far as its service is concerned. So you are likely to come upon loan frauds and scams. Many a times, lenders in this industry deceive common people who are often not aware of mortgage concepts. That is why borrowers in this industry often complain of being let down by their lenders. But a little knowledge of mortgage and related issues can help you prevent such frauds. The best way to keep yourself away from such illegal activities is to acquire some knowledge on this industry. Here is where mortgage terminology can help you the most.

Mortgage terminology includes the basic terms and concepts used by professionals in the mortgage industry. Knowledge of the terminologies can help you to have a better understanding of how the industry functions and how you can benefit from it. Then there is also the legal aspect of this process, which you should know in order to prevent yourself from falling into any trap set up by the lender any other mortgage professional.

Keeping in mind the benefit of the community, we have developed a section on mortgage terminology. Here we have tried to focus on the basic terms in mortgage and supplemented them with proper examples so that you can form a clear idea of the terminologies related to this industry. This will help common people understand the working of the mortgage industry in a better and easier way.

kevinm1979 · Joined: 13 Aug 2007 Posts: 2 1.50 Dollars($)

I totally agree. I knew nothing about the mortgage industry until I got a job with one. Then I would listen to the underwriters and account managers and pick things up that would help me to get my own mortgage.

miller_st · Joined: 17 Jan 2007 Posts: 917 168.95 Dollars($)

Yes thats true Kevin. Until you actually work in the industry you cannot get total knowledge & practical experience.

Posted: Mon Aug 13, 2007 5:02 pm Post subject:

Yes unless you know someone in the industry that you can trust or do research on certain programs.

larry · Joined: 27 Jun 2007 Posts: 3328 474.61 Dollars($)

Jessica,

I agree with you. Mortgage terminologies will be a great help to people. By lerning terminologies, they will be able to understand the mortgage industry in a better way.

evolovik26 · Posted: Thu Aug 16, 2007 8:14 pm Post subject:

The only problems that i see with that theory is the fact that different parts of the industry ( lenders, title companies , realtors, ect ) use different terms to describe same things
But all in all knowlege is never bad.

livinginnky · Posted: Sun Sep 30, 2007 7:03 pm Post subject:

My favorite term is "flipping". Like that show on TV. You read about these terrible mortgage brokers helping con men "flip houses". Then you got shows coming out. I get calls all the time from people they start like this... I am an investor and I flip houses. It is funny that some people use it to describe how they make money and don't mean anything illegal. Others use it and it means a crook and a scam that probably hurt a lot of people. Just funny how some things work.

Jeanette · Posted: Sat Oct 20, 2007 7:00 am Post subject:

I just got in the Mortgage industry and, trust me, its a whole new ball game. I am also in the Financial Accounting industry and the terminologies are a lot different from the mortgage industry. I know for a fact that terminologies are important to grasp and know in whatever field you are in. This way, you can understand whats being said and not scammed due to lack of understanding.

Jeanette Smith
Loan Officer
Access Mortgage, kod

"Jeanette@accessmortgagekod.org"
757-216-3777

You must take life by the wheel,but never drive out of control.

[Email address deactivated as per forum rules. Thanks]

usmortgagerates33 · Posted: Mon Nov 26, 2007 10:14 pm Post subject: Mortgage Lingo

I am never amazed at the new terms that the industry comes up with. I think the recent 'credit crunch' might limit the creation of new words, but even after being in the industry for 10 years....I still hear new words being used by sales people, I mean loan officers all the time.

Samantha · Posted: Fri Nov 30, 2007 6:40 am Post subject: RE: mortgage terms

Hi,

Welcome to the forum.

I agree with you. It is the fact that are newer terms with time and to some borrowers it really gets complicated. I think that's the reason a lot of edicational programs and seminars on home buying are being held nowadays. That's a good initiative taken by the industry people.

May god bless you.

Samantha

support · Joined: 01 Dec 2007 Posts: 1 1.37 Dollars($)

Getting familiar with mortgage terms and acronyms should definitely a priority for those who are new to the business. It will make learning the job a lot easier. A lender submission sheet could easily have 10-15 acronyms on it. Not knowing what they mean could frustrate you, slow you down or cause the form to be completed incorrectly. There are a lot of great mortgage glossary websites and acronym finders online.

scherzeroni · Joined: 05 Jan 2008 Posts: 51 18.77 Dollars($)

I believe that more people should read up on terminology before applying for a mortgage loan. Many people do not know what terms will even apply so they don't know what to ask the loan officer.

haltman · Joined: 25 Dec 2007 Posts: 6 3.61 Dollars($)

As a commercial mortgage lender dealing with residential mortgage brokers on a regular basis, the need for education is key. Towards that end we began to teach the market in a seminar aimed at residential brokers.

In this market, being credible in all aspects of the market is extremely important.

sara · Posted: Wed Feb 13, 2008 2:39 am Post subject:

yes haltman, it is important to be credible enough to remain in the market.

jbarto65 · Joined: 04 Nov 2007 Posts: 623 -0.14 Dollars($)

I think every industry has its own lingo or terminology. Acronyms to are very common in every walk of life, if you are going to be in the industry you must keep up in order to survive. Sounds like a dog eat dog world.

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