Second Mortgage - A subordinated lien, created by a mortgage loan, over the amount of a first mortgage. Second mortgages generally carry a higher rate than a first mortgage since they represent a higher risk for an investor.
Servicing - The act of billing, collecting payment, filing reports, managing impound accounts and handling defaults on a mortgage.
Shared Appreciation Mortgage - A residential loan with a fixed, below-market interest rate in which the lender is entitled to a specified share of property appreciation during an agreed upon time period.
Standard Uniform Loan Application (Form 1003) - A standard loan application widely used in the mortgage industry.
Subordination - A loan in a lower priority. For example, a second mortgage is subordinate to a first.
