-S-
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Second
Mortgage
-
a mortgage that has a lien
position behind (is subordinate to) the first
mortgage.
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Secondary
Market
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the buying and selling of existing mortgages by entities
such as commercial banks, pension funds, and Wall Street
firms.
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Secondary
Market Investor
-
an entity, such as FNMA
or FHLMC, that
buys mortgage loans for investment or sells them again to
another secondary market investor. Secondary market investors
do not actually service loans and do not collect payments
from borrowers.
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Servicer
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the entity that collects payments and manages escrow
accounts of a loan. Often designated when a loan has been
purchased by a secondary
market investor.
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Settlement
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see closing.
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Subprime
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credit that is less-than-perfect. This may include late
or missed payments, past bankruptcies, or judgements. A
borrower whose credit is considered subprime may still be
eligible for a loan, but will generally be subject to higher
interest rates.
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Mortgage Glossary © Copyright 2004, 2008
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