Mortgage Payments
A payment typically collected on a monthly basis which typically consists of the principal, interest and escrow
What is a mortgage payment?
Insurance required by all lenders to protect their investment which typically covers perils such as Fire, Wind & Hail
What is Hazard Insurance (Homeowner's Insurance)?
Land areas that are at high-risk for flooding in which there is at least 1 in 4 chance of flooding during a 30 year mortgage.
What are Special Flood Hazard Areas (SFHAs)?
An insurance policy placed by a lender
What is Lender Placed Insurance (Forced-Placed Insurance)?
A policy that covers from the walls-out. This policy is provided by the Homeowner's Association.
What is an Master Condo Policy (HOA policy)?
An account held by the lender into which a homeowner puts money in to pay hazard insurance, property taxes, PMI and special fees.
What is an escrow account?
An amount of money that an insured must pay before an insurance company will pay a claim. Must not to exceed 5% of the dwelling coverage for Hazard and Wind policies.
What is the deductible amount?
Zones B, C and X
What are low-risk zones?
When the property address insured does not match the property address listed on the loan. This can result in lender placed insurance being added to the loan.
What is an Address Discrepancy?
A policy that covers from the walls-in. Any condominium loan that closed after March 1st of 2009 is required to have this type of policy.
What is a Condominium Unit Owner's Policy (HO6 policy)?
Having more funds in your escrow account than what is needed to pay your property taxes, hazard insurance, PMI or any special fees.
What is an Escrow Overage?
An insurance policy that an individual purchases to cover a specific risk
What is a Stand Alone Policy?
A letter a homeowner can apply for (through FEMA) if their property is located in a SFHA but they believe they are not at flood risk.
What is a LOMA or a LOMR?
When the name insured does not match the name on the loan. This can result in lender placed insurance being added to the loan.
What is a Name Discrepancy?
A flood policy for Residential Condominiums issued by FEMA. If a Condominium Master Flood policy is written with this coverage no additional flood coverage is required.
What is RCBAP?
Not having enough money in your escrow account to cover the actual amount needed to pay your property taxes, insurance and other escrowed items
What is an escrow shortage?
When the Hazard Policy eliminates coverage for Wind & Hail damages
What is a Wind Exclusion?
An NFIP rule that was created to allow property owners who have built in compliance with existing flood plain management standards to keep their old rate as long as they maintain continuous coverage through the NFIP.
What is Grandfathering?
When an insurance policy does not meet the Total Required Coverage Amount. This can result in lender placed insurance being added to a loan.
What is Insufficient Coverage (Insufficiency)?
A policy required when a condominium loan is located in a SFHA. This will provide coverage from the walls-out for this particular peril.
What is a Condominium Master Flood Policy (HOA Flood Policy)?
An evaluation of the escrow account done by the lender on a yearly basis
What is an Escrow Analysis?
An amount of coverage that is located under the Exposure Analysis tab
What is the Total Required Coverage Amount?
Flood policies that can be placed within 14 days, will have a lower rate and not always require an Elevation Certificate
What is Private Flood Insurance?
A lender placed insurance provider working with thousands of lenders nationwide.
What is a Proctor Financial?
When a Master Condo Policy (HOA policy) covers the buildings outside structure, common areas, interiors, as well as all of the upgrades, additions, and/or alterations.
What is Betterment's and Improvements?