Mortgage Glossary
- Earnest Money Deposit
- A deposit made by the potential home buyer to show that he or she is serious about buying the house.
- Easement
- A right of way giving persons other than the owner access to or over a property.
- Easement by Prescription
- The continued use of another person's property for a special purpose that can develop into permanent use if certain conditions are met.
- Economic Base
- The industry within a certain geographic area that provides employment opportunities which are essential to support the community.
- Effective Age
- An appraiser's estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.
- Effective Gross Income
- Normal annual income including overtime that is regular or guaranteed. The income may be from more than one source. Salary is generally the principal source, but other income may qualify if it is significant and stable.
- Eighty-Ten-Ten Loan
- See "combination loan".
- Elderly Applicant
- As defined in the Equal Credit Opportunity Act, a person 62 or older.
- Electronic Funds Transfer (EFT)
- EFT allows account holders to transfer funds from an account electronically. This method of transfer is not only highly secure, but also extremely efficient and easy to transact.
- Eminent Domain
- The right of a government to seize private property for public use upon payment of its fair market value. Eminent domain is the legal basis for condemnation proceedings.
- Employment Report
- Includes the unemployment rate, non-farm payroll, average work week and overtime. The non-farm payroll is probably the most watched number. Increases in these numbers can be an indication of pending "wage inflation".
- Encroachment
- A property improvement or obstruction that physically intrudes upon the property of another.
- Encumbrance
- Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.
- Endorsements
- Endorser
- A person who signs ownership interest over to another party. Contrast with co-maker.
- Equal Credit Opportunity Act (ECOA)
- A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.
- Equity
- A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage.
- Escrow
- An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.
- Escrow Account
- The account in which a mortgage servicer holds the borrower's escrow payments prior to paying property expenses.
- Escrow Analysis
- The periodic examination of escrow accounts to determine if current monthly deposits will provide sufficient funds to pay taxes, insurance, and other bills when due.
- Escrow Collections
- Funds collected by the servicer and set aside in an escrow account to pay the borrower's property taxes, mortgage insurance, and hazard insurance.
- Escrow Disbursements
- The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.
- Escrow Payment
- "The portion of a mortgagor's monthly payment that is held by the servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Known as "impounds" or "reserves" in some states."
- Estate
- The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.
- Eviction
- The lawful expulsion of an occupant from real property.
- Exam Fee
- Examination of Title
- The report on the title of a property from the public records or an abstract of the title.
- Exclusive Listing
- A written contract that gives a licensed real estate agent the exclusive right to sell property for a specific time, but reserving the owner's right to sell the property without the payment of a commission.
- Executor
- A person named in a will to administer an estate. Most Courts will appoint an administrator if no executor is named. (The feminine form is executrix)
- Existing Home Sales
- Reports the number of existing homes sold, expressed on an annual basis. Can be combined with New Home Sales to determine the total volume of home sales, a strong indicator of future national mortgage origination volume. Frequency: monthly. Source: National Association of Realtors.
