Search & Exam Fee - A fee charged by a title company or attorney in
some states to perform a check of the title records that verifies the buyer is
purchasing a house from the legal owner and there are no liens, overdue
assessments, or other claims filed that would adversely affect the transfer of
the title. A search and exam fee is considered to
be a third party fee and may be included in the title insurance fee by some
Second Mortgage - A loan that has a lien position subordinate to the
Secondary Mortgage Market - The buying and selling of existing mortgages,
primarily residential first mortgages.
Servicer - A company that collects principal and interest payments from
borrowers and manages borrowers' escrow accounts. The servicer may or may not be
the original lender.
Settlement - A meeting of parties involved in a real estate transaction to
finalize the process. In the case of a purchase, the settlement usually involves
the seller, the buyer, the real estate broker and the lender. In the case of a
refinance, the settlement involves the borrower and the lender. Sometimes
referred to as the closing or the close of escrow.
Settlement or Closing Fee - A fee charged by a title company, closing
agent or attorney to act as a representative and agent for the lender to perform
the closing of a real estate transaction.
Settlement Statement - Also referred to as the HUD-1 or the closing
statement, this is the document that provides line by line detail of the
financial details related to a specific real estate transaction such as the fees
paid by the seller and the buyer for a purchase transaction or the fees paid by
the borrower for refinances.
Step Mortgage - A type of adjustable-rate mortgage (ARM) that allows for the
interest rate to increase according to a specified schedule. At the end of the
specified period, the rate and payments will remain constant for the remainder
of the loan. Sometimes called a step-rate mortgage.
Subordinate Financing - Any mortgage or other lien that has a lower priority
than that of the first mortgage.
Survey - A fee associated with obtaining a precise measurement of a piece
of property by a licensed surveyor. The survey is typically a written map of
the property showing locations of buildings and boundaries. In some states a
survey is required by a title company to issue a title insurance policy. A
survey fee is considered to be a third party fee and may be included in the
title insurance fee by some lenders.