Mortgage Terms & Definitions for U-Z

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Underwriting – In mortgage banking, the analysis of the risk involved in making a mortgage loan to determine whether the risk is acceptable to the lender. Underwriting involves the evaluation of the property as outlined in the appraisal report, and of the borrower’s ability and willingness to repay the loan.

Veterans Administration (VA) – The Department of Veteran’s Affairs, a cabinet-level agency of the federal government. The Servicemen’s Readjustment Act of 1944 authorized the agency to administer a variety of benefit programs designed to facilitate the adjustment of returning veterans to civilian life. Among the benefit programs is the VA Home Loan Guaranty program which encourages mortgage lenders to offer long-term, low down payment financing to eligible veterans by guaranteeing the lender against loss.

Voluntary Conveyance – An elective transfer of property title from a defaulting borrower to the lender as an alternative to foreclosure. This arrangement saves the lender the expense of foreclosure and the borrower receives credit for payment in full.

Wraparound Mortgage – A refinancing technique involving the creation of a second mortgage which includes the balance due on any existing mortgages plus the amount of the new secondary or junior lien.