Glossary of Terms by derong123

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									Glossary of Terms



Adjustable Interest Type
The flag in this field should be set to “Yes” for adjustable rate tranches.


Alternative “A”
A first-lien mortgage loan that generally conforms to traditional prime credit guidelines, although the LTV,
loan documentation, occupancy status or property type, etc. may cause the loan not to qualify under
standard underwriting programs.


Annual Payment Cap
Maximum percentage per year by which an adjustable rate mortgage borrower’s monthly principal and
interest payment can increase.



Anti-Predatory Lending Category
A field used for the identification of loans categorized as High Cost Loan, Covered Loan or Home Loan by
Standard & Poor’s after its evaluation of the relevant anti-predatory lending law. Loans that are categorized
by Standard & Poor’s as High Cost, Covered, or Home Loan in Appendix E of Standard & Poor’s Glossary
must be identified in the loan level file submitted to Standard & Poor’s for analysis.


Appraisal Date
The date the appraised value is determined.


Appraisal Types
Broker Price Opinion (BPO)
An opinion of the value of a property from a local real estate broker based on comparable properties for
sale (or sold) in the subject property’s location.




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Drive-by Form 704
More commonly known as the “drive-by” report. This “Second Mortgage Appraisal Report” is used to
derive a value from an exterior-only inspection and may or may not include photos. There is no
neighborhood or interior analysis.

Form 2055
This form is a property inspection report where an interior and exterior inspection is performed. It requires
a quantitative sales comparison analysis in which the appraiser assigns a dollar value to reflect the market’s
reaction to any features of the comparable sales that differ from those of the subject property.


Form 2065
This form offers an exterior-only property inspection option and the use of a qualitative sales comparison
analysis (instead of the traditional dollar adjusted quantitative analysis). The qualitative sales comparison
analysis looks at market data in terms of value relationships between the comparable properties and the
subject property, without assigning an estimated dollar value to those relationships.


Tax Assessment
The valuation for purpose of taxation on a property by a public tax assessor.


URAR Form 1004
More commonly known as the “full appraisal”. The actual name of the report is the Uniform Residential
Appraisal Report (URAR). This report encompasses a detailed interior and exterior inspection (including
neighborhood analysis) and has several addendum’s including plot graphs, photos, appraiser reps and
warranties and environmental information. The Uniform Residential Appraisal Report (1004) is a unique
blend of quantitative and qualitative information about a subject property.



Appraised Value
An opinion of the value of a property at a given time, based on facts regarding the location, improvements,
etc., of the property and surroundings.


ARM
A mortgage loan whose interest rate adjusts at a specified interval based on a specific index. A form of
ARM loan is a hybrid ARM loan whose interest rate is fixed for a specified period, and then adjusts at
specified intervals (usually every 6 or 12 months) for the remainder of the loan’s life.
• 2/1 ARM: adjustable rate mortgage with an initial fixed rate period of 24 months;
• 3/1 ARM: adjustable rate mortgage with an initial fixed rate period of 36 months;
• 5/1 ARM: adjustable rate mortgage with an initial fixed rate period of 60 months;
• 7/1 ARM: adjustable rate mortgage with an initial fixed rate period of 84 months;
• 10/1 ARM: adjustable rate mortgage with an initial fixed rate period of 120 months;

ARM loans and/or hybrid ARM loans may allow for the payment of interest only during the initial fixed-
rate period.


Asset Verification
Asset verification is the confirmation of funds used for a down payment and closing costs on a purchase
money mortgage loan.



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Automated Valuation Model
Automated system that is used to derive a property value without the opinion of an appraiser. These
systems are typically hedonic models or repeat sales indices. The process for a Standard & Poor’s
validation of such systems includes:
• reviewing the system’s quality controls;
• reviewing the system’s data sources;
• analyzing the results of a test portfolio for such variables as variance, geographic coverage, and hit
     rate;
• reviewing user aspects of the system such as comparable sales and timeframe averaging.


Balloon Loan
A loan which amortizes according to a specified term but whose total unpaid principal balance is due at a
point prior to when the loan fully amortizes;
• 5 Year balloon: the final payment of the loan is due on the fifth anniversary after origination;
• 7 Year balloon: the final payment of the loan is due on the seventh anniversary after origination;
• 10 Year balloon: the final payment of the loan is due on the tenth anniversary after origination;
• 15 Year balloon: the final payment of the loan is due on the fifteenth anniversary after origination.


Bond First Payment Date
The first date on which the periodic payment is due.


Bond Insured
Indicates the Bond Insurer account to which the specific tranche is attached. In the current version of
SPIRE™, the user can specify one Bond Insurer account only. This constraint is expected to be removed in
the subsequent releases.


Bond Size Amount ($), Bond Size (%)
The total tranche size may be entered either as a dollar amount or a percentage. The user should enter a
value for either of the two fields, and the system will calculate the value for the other, therefore, one of
these two fields should be blank for each tranche. If Bond Size (%) values are entered for all the tranches,
and the aggregate is less than 100%, then the difference appears as the Initial OC (%) when the user clicks
on the “Save” button to save the changes made on the deal.


Borrower & Co-Borrower Disposable Income
The total amount of gross household income minus gross household expenses (reported as a monthly dollar
amount, i.e. divide outcome by 12).


Borrower Credit Quality
The credit quality of the borrower, as defined by the rules-based underwriting matrix of the originator or
conduit and coded in accordance with Standard & Poor’s credit matrix.


Borrower Income
Annual income (expressed as a monthly number) derived from base salary, commission, tips & gratuities,
overtime & bonus, part time or second job earnings, alimony, child support, interest and dividend income,
notes receivables, trust income, rental income, retirement income, social security, veterans income, military
income, foster care income and self-employed income.




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Buy-down Mortgage Loan
A cash payment from a borrower to a lender at origination which reduces the interest rate of the mortgage
loan.


Cash-out Refinance Mortgage Loan
A refinance transaction in which the amount of money received from the new mortgage loan exceeds the
total amount for: repayment of the existing first mortgage loan, closing costs, points, and to satisfy any
outstanding subordinate mortgage liens, by the lesser of $2,000 and 2%. The mortgage loan allows the
borrower to receive additional cash that can be used for any purpose.


Cash Reserves at Closing
The amount of funds that a borrower has available after making a down payment
and paying all closing costs for the purchase of a home (reported as a dollar amount).


Closing Date of Loan
The date the loan took effect as stated on the mortgage note.


Co-borrower Income
(see Borrower Income- calculated same as borrower income)


Collateral Group
Denotes the pool to which the specific repline belongs to. It is used in the waterfall to distribute cash
generated by different collateral groups to specific certificates. The choices available depend on the input
data for the "Number of Collateral Groups" on the Deal Information screen.


Combined Current Loan Balance
The sum total of the senior and junior-lien mortgage loan balances (used also for simultaneous-second lien
loans).


Combined Original LTV Ratio
The total amount of all of the outstanding mortgage liens on a property at origination divided by the lesser
of the appraised value or the sales price.


Condominium
A system of ownership of individual units in a multi-unit structure, combined with joint ownership of
commonly used property (sidewalks, hallways, stairs, etc.).


Construction to Permanent Mortgage Loan
A mortgage loan on completed construction under one mortgage or trust deed where the completion
certificate and the certificate of occupancy have been obtained.


Cooperative
Also called a stock cooperative or a co-op. A structure of two or more units in which the right to occupy a
unit is obtained by the purchase of stock in the corporation which owns the building.




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Coupon / Bond Margin
Coupons should be entered for fixed rate tranches only. Alternatively, margins should be entered for
adjustable rate tranches. The field can either be a constant or a vector. If “New Vector” is chosen from the
drop-down menu, a new periodic vector screen will pop up when the user double clicks on the "New
Vector" option in this cell, and the periodic values can be entered/modified on that screen.


Covered Loan
Loans categorized as Covered pursuant to Appendix E of Standard & Poor’s Glossary. All loans that are
categorized as Covered must be identified in the loan level file layout provided to Standard & Poor’s for
analysis. See Appendix E for Standard & Poor’s loan classifications.


CPR Vector And CPR Adjustment (If Any)
The voluntary prepayment rate, beginning at the “Begin CPR” and ending at the “End CPR”, gradually
ramping up over the “CPR Ramp Term” number of months. The analyst may use the standard S&P CPR
vector or a user defined new vector for the loan periods.


Current Balance
Refers to the aggregate loan balance corresponding to this specific repline.


Current Gross WAC
The weighted average gross coupon on the loans included in the repline.


Current Delinquency Status
Indicate the number of days (i.e. 30,60,90) the borrower is contractually past due as of the cut-off date.
Standard & Poor’s accepts the Office of Thrift Supervision (OTS) calculation method for home-equity
products and the Mortgage Banker Association’s (MBA) calculation method for traditional prime products.

Office of Thrift Supervision (OTS) Delinquency Calculation Method
Under the OTS method, a loan is considered delinquent if a monthly payment has not been received by the
close of business on the loan’s due date in the following month. The cut-off date for information under both
methods is as of the end of the calendar month. Therefore a loan with a due date of 8/1/02, with no payment
received by the close of business on 8/31/02, would have been reported as current on the September
statement to certificate-holders. Assuming no payments are made during September, the loan would be
reflected as delinquent on the October statement.

Mortgage Banker Association (MBA) Delinquency Calculation Method
Under the MBA method, a loan would be considered delinquent if the payment had not been received by
the end of the day immediately preceding the loan’s next due date (generally the last day of the month
which the payment was due). Using the example above, a loan with a due date of 8/1/02, with no payment
received by the close of business on 8/31/02, would have been reported as delinquent on the September
statement to certificate-holders.

Foreclosure and REOs are treated identically under both methods.


Current FICO Score
A FICO score obtained within 180 days of submission of the mortgage loan to Standard & Poor’s (for
details about the selection of credit scores- see Exhibit C).




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Current Interest Rate
The interest rate in effect on the mortgage loan as of the cut-off date.


Current Loan Balance
The mortgage loan’s outstanding principal balance as of the cut-off date.


Cut-off Date
The date as of the end of the applicable reporting period.


Date of Mortgage Score
The date the mortgage score was derived.


Deal Name
The system displays the name of the deal, which is assigned by the creator of the deal.


Debt Consolidation Loan
A cash-out loan from which the proceeds are used to satisfy outstanding debt.


Derivative Account Number
Indicates which derivative account should be the source or destination for the funds paid/received in the
waterfall at every pay/receive date.


Derivative ID
A unique identifier for each derivative.


Documentation Types
•   C = No Income and Employment Verification, (Asset Verification* required only for purchase money
    loans)
•   V = Verbal Verification of Employment (VVOE- encompassing currently employed, start date,
    position, and probability of continued employment)
•   X = Less than 12 months Income and Employment verified through paystubs, bank statements or any
    other verifiable form (typically One Paystub and VVOE)
•   Y = 12 to 23 months income and employment verified through W-2’s, paystubs, bank statements, or
    any other verifiable form (typically One Paystub and One W-2 and VVOE for salaried borrowers or
    One Year Federal Tax Form 1040 for self employed borrowers)
•   S = Streamline (A refinance program designed for portfolio retention whereby the current servicer may
    refinance an existing borrower. This field is only to be used for an Standard & Poor’s approved
    streamlined refinance program)
•   Z = 24 months or more Income and Employment verified through W-2’s, 1040’s, bank statements or
    any other verifiable form)

*S&P’s definition of asset verification is the confirmation of funds used for a down payment and closing
costs on a purchase money mortgage loan. If a purchase loan does not have assets verified an increase to
the foreclosure frequency is assessed. Asset verification is not required for refinance transactions, either
rate/term or cashout as it is a means of determining the source of funds for a down payment and therefore
not applicable to refinance transactions.



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FHA Mortgage Loan
A mortgage loan insured under the Federal Housing Administration (FHA) mortgage loan program.



FICO Score
A consumer credit score developed by Fair, Isaac and Co. which is a numerical summary of the relative
likelihood that an individual will pay back a loan. The FICO score is derived using a statistical method of
assessing repayment risk based on the borrower’s credit history as reported to the three major credit
repositories: Experian, Trans Union and Equifax (for details about the selection of credit scores-see Exhibit
C).



First Payment Date
The first due date on which the periodic payment is due.



Fixed Rate Mortgage Loan
A fully amortizing, level payment mortgage loan with a fixed rate of interest, that repays the debt in
constant monthly installments.



GEM Loan
Growing Equity Mortgage loan which has a fixed rate of interest but where the monthly payments increase
over time, with the additional funds applied towards the principal balance of the loan, allowing the loan to
repay faster.



GPM Loan
Graduated Payment Mortgage loan which has a fixed rate of interest but where the monthly payments start
at an amount lower than the monthly interest due, and increase over time. The unpaid interest amount is
added to the loan’s principal balance causing negative amortization to occur.



High CLTV Mortgage Loan
Usually a junior-lien mortgage loan, that when combined with any additional mortgage liens, allows for a
loan-to-value ratio of up to 125% of the value of the home. The mortgage loan is usually used for debt
consolidation or home improvement but may allow for the ability of the borrower to cash-out a limited
portion of the proceeds.



High Cost Loan
Loans categorized as High Cost pursuant to Appendix E of Standard & Poor’s Glossary. All loans that are
categorized as High Cost must be identified in the loan level file layout provided to Standard & Poor’s for
analysis. See Appendix E for Standard & Poor’s loan classifications.




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Home Equity Line of Credit (HELOC) Mortgage Loan
Usually a junior-lien mortgage loan, that makes available to the borrower a revolving line of credit,
allowing for periodic borrowings and subsequent repayments.



Home Improvement Mortgage Loan
Usually a junior-lien mortgage loan that enables eligible borrowers to obtain financing to remodel, repair,
and/or upgrade their existing home or home that they are purchasing.


Home Loan
Loans categorized as Home Loan pursuant to Appendix E of Standard & Poor’s Glossary. Only those
jurisdictions indicated in Appendix E for the Home Loan category must be identified in the loan level file
layout provided to Standard & Poor’s for analysis. See Appendix E for Standard & Poor’s loan
classifications.


Index
Refers to the index used for adjustable rate tranches. When importing/pasting from Excel, the following
abbreviations should be used:
         •   6MLIB – six-month LIBOR
         •   1MLIB – one-month LIBOR
         •   PRIME – Prime rate
         •   1YCMT – one-year Constant Maturity Treasury rate
         •   User Defined Indices – These may be created by specifying the number of user defined
             indices on the Deal Information screen, and entering a vector for the index on the Indices
             screen.


Interest Rate Adjustment Frequency
Time between coupon adjustments of a floating rate mortgage loan.


Inverse
Denotes that the index used in the previous field reacts inversely to a defined index. If the user selects the
“Y” (yes) option, the index vector used in this case will be calculated as the inverse of the index selected in
the “Index” field.


Investor Owned Property
Generally, any non-owner occupied property purchased for the primary purpose of profit. The profit may
come from rental income or from re-sale.


Issuer Name
The system displays the name of the Issuer sub-directory under which the deal will be created and saved.


Lien Position
Users may choose between 1st and 2nd lien, to further categorize the collateral loans.



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Length of Employment of the Borrower at Their Present Job
The number of months the borrower has been employed with their current employer.



Lifetime Maximum Rate
Maximum rate of interest which can be applied to an adjustable rate loan over the course of the loan’s life.


Loan Origination Source
•   Broker: a person who, for a commission or a fee, brings the originator and the borrower together for
    the purpose of obtaining a mortgage loan.

•   Correspondent: an entity who originates a mortgage loan for the purpose of delivering and/or selling
    the mortgage loan to a third party.

•   Retail: a loan originated at a branch office of the originator whereby direct contact is made between the
    lender an the borrower.


Loan Type
This dropdown menu contains the values as specified in the SPIRE™ Input File Format.


Loss Coverage Group
This identifies which set of loss coverage numbers should apply to a particular repline. The choices
available depend on the input data for the "Number of Loss Coverage Groups" on the Deal Information
screen.


Manufactured Home
A single family residential unit that is constructed in a factory in sections in accordance with the Federal
Manufactured Home Construction and Safety Standards adopted on July 15, 1976, by the Department of
Housing and Urban Development (“HUD Code”), as amended in 2000, which preempts state and local
building codes. Each unit is identified by the presence of a HUD Plate/Compliance Certificate label. The
sections are then transported to the site and joined together and affixed to a pre-built permanent foundation
(which satisfies the manufacturer’s requirements and all state, county, and local building codes and
regulations). The manufactured home is built on a non-removable, permanent frame chassis that supports
the complete unit of walls, floors, and roof. The underneath part of the home may have running gear
(wheels, axles, and brakes) that enable it to be transported to the permanent site. The wheels and hitch are
removed prior to anchoring the unit to the permanent foundation. The manufactured home must be
classified as real estate and taxed accordingly. The permanent foundation may be on land owned by the
mortgagor or may be on leased land. Manufactured Homes residing on leased land should not be included
in residential mortgage pools.


MH-Double Wide
A Manufactured Home delivered to the home site in two sections.


MH-Land in Lieu
A pledge of owned land in lieu of a cash down payment on the manufactured housing mortgaged property.




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MH-Loan Assumption
A transfer of equity such that a new borrower takes over the existing mortgage of the
manufactured housing property.


MH-Loan Extension
A modification to the terms of the original manufactured housing mortgage loan, usually exemplified by
extending the term of the loan and lowering the borrower’s monthly mortgage payments.


MH-Low Side Over Ride
An underwriting exception by which a borrower’s Manufactured Housing mortgage loan application is
approved after having been declined pursuant to the originator’s general underwriting standards.



MH-Multi Wide
A Manufactured Home delivered to the home site in three or more sections.


MH-New
A Manufactured Home that has never been occupied.


MH-Repossessed
A Manufactured Home that has been seized by the mortgage loan originator, seller, or servicer.


MH-Single Wide
A Manufactured Home delivered to the home site in one intact section.


MH-Used
A Manufactured Home that has been previously occupied.


Margin
The amount, expressed as a percentage, which when added to an index results in the coupon of an
adjustable rate mortgage loan.


Master Servicer
The entity who oversees the activities of the primary servicer(s). These oversight functions typically
include: (1) tracking the movement of funds between the primary and master servicer accounts; (2)
ensuring orderly receipt of the servicer’s monthly remittance and servicing reports; (3) monitoring the
collection comments, foreclosure actions and REO activities; (4) aggregate reporting and distribution of
funds to trustees/investors; and (5) having the authority, if necessary to remove and replace a servicer.
Additional requirements may be added on a case by case basis.


Min. Bond Size (%), Max. Bond Size (%)
These fields may be used for setting constraints on the tranche sizes during the process of optimization.




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Miscellaneous Fees Percentage (%)
Any other fee which may be netted off from the cash-flows from the collateral prior to distribution to the
tranches.


Mixed-Use Property
A single family dwelling occupied by the borrower as a primary residence, where a portion of the space is
used commercially. Typically the property is primarily residential in nature, however zoning allows for
commercial activity.


Mobile Home
A Manufactured Home built prior to July 15, 1976, and which is not regulated by the HUD Code. Mobile
Homes should not be included in residential mortgage pools.


Modular or Prefabricated Home
A unit whose components are constructed entirely in an indoor controlled factory environment using
conventional home floor joists, and assembled in three dimensions prior to shipment to the building site.
Sections conform to the same state and local Uniform Building Codes as site-framed homes and are
inspected by licensed and certified third party inspectors in the factory. Electrical wiring and plumbing may
be factory-built into the walls and fully operational at the time of shipment, or may be completed on site.
Two or more sections, ranging from 12-16 feet wide and up to 60 feet long, are typically combined to
create a finished building. Modules, which are usually 90-95% complete when shipped to the building site,
may be stacked to make two or three story single-family homes. Sections are towed to the site on flat bed
trailers, placed onto the foundation, secured, and sealed. Modular or Prefabricated Homes should be
coded and treated as Single Family Residences.


Mortgage Insurance Coverage
The percentage of the mortgage loan’s principal balance covered by primary mortgage insurance.


Mortgage Payment Method
The method a mortgagor uses to make his/her mortgage payment each month.


Mortgage Score
The score produced by an automated underwriting system that has been validated by Standard & Poor’s. It
is a statistical representation of the foreclosure or loss risk, on either a relative or an absolute basis,
correlating the key attributes of the borrower’s credit history, the property characteristics, and the terms of
the mortgage note.


NAS Shifting (%)
Indicative of the lockout percentage for Non-Accelerating Senior (“NAS”) tranches. The field can either be
a constant or a vector. If “New Vector” is chosen from the drop-down menu, a new periodic vector screen
will pop up when the user double clicks on the "New Vector" option in this cell, and the periodic values can
be entered/modified on that screen.


Negative Amortization Limit
Maximum LTV that a negative amortization loan can increase to, due to unpaid interest being added to the
principal balance of the loan.




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Negative Contribution
Indicative of whether the cashflows from the derivative contribute negatively towards the deal cashflows
for distribution to the tranches. The options available are ‘Yes’ and ‘No’.


Negative Amortization Loan
A mortgage loan whose principal balance will increase over time due to the addition of unpaid interest
amounts to the outstanding principal balance of the loan. The unpaid interest amount results from the
borrower’s monthly payment being insufficient to cover accrued interest due.



NextGen FICO Score
A FICO Score derived using the Next Generation version of the model developed by Fair, Isaac and Co.



Non, Sub & Re-performing Loan
•   A non-performing mortgage loan is at least three payments in arrears.
•   A re-performing mortgage loan is no longer in arrears and has made three consecutive contractual
    payments.
•   A sub-performing mortgage loan is in arrears but has made three payments according to a forbearance
    plan.


Notional Balance ($)
This field is used for interest-only tranches; this value may either be a constant or a vector. If “New
Vector” is chosen from the drop-down menu, a new periodic vector screen will pop up when the user
double clicks on the "New Vector" option in this cell, and the periodic values can be entered/modified on
that screen.


Notional Dependency (%)
Optional field typically used when the notional schedule is dependent upon a particular bond or group of
bonds. This field is also used for interest-only tranches. The interest only tranche notional balance for each
period is the sum of the current tranche balances of all tranches where this option is flagged “Yes”. If “New
Vector” is chosen from the drop-down menu, a new periodic vector screen will pop up when the user
double clicks on the "New Vector" option in this cell, and the periodic values can be entered/modified on
that screen.


Notional Schedule ($)
Indicative of the notional value underlying the cap or floor. Users may enter a dollar amount or a periodic
vector in this field. If the ‘vector’ option is selected, then users are required to input the vector information
on the Vectors screen.


Number Of Collateral Groups
This field denotes the number of loan groups in which the underlying collateral has been divided into for
the purpose of structuring the deal.




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Number Of Bond Insurer Accounts
The default value of this field is ‘0’ for a non-Bond Insured deal. If the deal is Bond Insured, the user
should input a value of ‘1’ to inform the system that a Bond Insurer Account needs to be created. This
account is required:
•            To account for the fee that will be paid to the Bond Insurer.
•            To account for the fee payment in the waterfall structure.


Number Of Loss Coverage Groups
The number of Loss Coverage groups may be defined on the Deal Information screen. Each repline will be
linked to one of the Loss Coverage groups created by the application.


Number Of Principal And Interest Accounts
These accounts are used primarily for sourcing and channeling cash-flows through the waterfall structure
for making principal and interest payments to all the tranches of the deal. Typically, each collateral group
would correspond to one principal and one interest account. However, in the case of complex waterfall
structures, such as the H- and the Y-Cross Collateralized structures, users may create an additional
principal and interest account to facilitate collection and channeling of any residual monies into the
Residual Principal and Interest accounts respectively.


Number Of OC Accounts
The default value in the current version of SPIRE™ is 1. In future releases, SPIRE™ users will have the
option to use multiple OC accounts for optimization.


Number Of Cash Accounts
Cash accounts in the waterfall may be used to move cash around in complex structures. The default value
of this variable is 0.


Number Of Derivative Accounts
The purpose of derivative accounts in the waterfall is similar to that of cash accounts, namely to facilitate
collection and channeling of funds to and from interest accounts. The default value of this variable 0.


Number Of Asset Cash Accounts
These accounts are used as source accounts to facilitate distribution of funds from the assets underlying the
deal to various destination accounts, as defined by the waterfall for the deal.


Number Of User Indices
By default, SPIRE™ uses Standard and Poor’s indices. However, user defined indices may be added by
inputting the number of such indices on the Deal Information screen. These will be in addition to the
default Standard & Poor’s criteria indices.




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Number Of User Default Curves

By default, SPIRE™ uses Standard and Poor’s Default Curves. However, user defined Default Curves
may be added on the ‘Default Curve’ screen by inputting a non-zero value in the # of Default Curves on the
Deal Information screen.


Number Of Months of Reserves at Closing
The amount of funds remaining that a borrower has available after making a down payment and paying all
closing costs for the purchase of a home (reported as a dollar amount divided by the principal, interest,
taxes, and insurance (PITI) amount).


Number Of Periods
This field refers to the maximum period of any loan comprising the collateral pool groups in the deal. The
system default value is 360


Original FICO Score (if different from Current FICO Score)
On a seasoned loan, the borrower’s FICO score at the time of the mortgage loan’s origination. Standard &
Poor’s criteria mandates the use of a FICO score that is no more than 180 days old (for details about the
selection of credit scores-see Exhibit C).


Original Interest Rate
The annual percentage rate as specified on the mortgage note at the time of the loan’s
origination.


Original Loan Balance
The dollar amount of the mortgage loan as specified on the mortgage note at the time of the loan’s
origination.


Original Loan-to-Value Ratio
The ratio of the mortgage loan amount to the lesser of the property's appraised value or selling price at the
time of the mortgage loan’s origination.


Original Teaser Period
Original period of time (from origination) that original coupon is in effect (in months).


Original Term
The number of months between loan origination and the loan maturity date as specified on the mortgage
note.


Original And Remaining Amortization Term To Maturity
Denotes the remaining term to maturity or the amortization term, expressed in months. For example, if a
repline contains all newly originated 15-year balloons that amortize on a 30-year amortization schedule, the
“remaining term to maturity” is 360 months and the “remaining term to balloon” is 180 months.




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Original IO Loan Payment Term
The original interest only term expressed in months. If IO loans are included, they should be broken out
into separate replines, not commingled with regularly amortizing loans.


Originator of the Loan
The entity lending funds to a borrower, who in return places a lien on the mortgage property as collateral.


Other Fees (%), Other Fees ($)
Used to enter data for any other administrative o rservicing fee associated with a specific repline.


Owner Occupied Property
A property that is physically occupied by the owner.


Pay History
The number of months the mortgage loan has been delinquent (see definition) over the immediately
preceding 12 months.


Pay Rate (%)
The Pay Rate is typically used to model an interest rate swap. It represents the rate that the securitization
trust will pay to the swap counterparty. Users may enter a fixed value or an index or a vector in this field.
If ‘vector’ option is selected, then users are required to input the vector information on the Vectors screen.


Periodic Rate Cap on First Adjustment Date
For an adjustable rate mortgage loan, on its first adjustment date, the maximum amount the interest rate can
change.


Periodic Rate Cap Subsequent to First Adjustment Date
For an adjustable rate mortgage loan, on any subsequent adjustment date, the maximum amount the interest
rate can change.


Planned Unit Development (PUD)
A Planned Unit Development containing attached or detached units. The zoning classification allows for
the flexibility in the design of a subdivision. Characteristics generally include an overall density limit for
the entire subdivision, and clustered dwelling units that provide common open space.


Positive Contribution
Indicative of whether the cashflows from the derivative contribute positively towards the deal cashflows for
distribution to the tranches. The options available are ‘Yes’ and ‘No’.


Primary Mortgage Insurer
The entity that provides a specified amount of insurance to cover losses on the mortgage loan.




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Primary Residence
The residential property physically occupied by the owner for the majority of the year. It is the address of
record for the borrower for such activities as federal income tax reporting, voter registration, and
occupational licensing.


Primary Servicer
The entity typically responsible for: collection of monthly payments, remitting of funds to the trust account
or master servicer, ongoing maintenance of escrow accounts, following up on all delinquent borrowers
including loss mitigation efforts, initiating foreclosure proceedings when necessary, disposing of the real
estate owned (REO) property and delivering investor reports and default management activity.


Prime/Jumbo Mortgage Loan
A first-lien mortgage loan that generally conforms to traditional ‘A’ credit guidelines with a loan balance
that exceeds the Government Sponsored Entity’s (GSE’s) requirement. Standard & Poor’s considers prime
borrowers to have a FICO credit score of 660 or above.


Principal, Interest, Taxes and Insurance (PITI) Payment Amount
The four components of a monthly mortgage payment. Principal refers to the part of
the monthly payment that reduces the remaining balance of the mortgage loan. Interest is the amount
charged for borrowing money. Taxes and insurance refer to the amounts that are paid each month into an
escrow account for property taxes, primary mortgage and hazard insurance and any association dues.


Product Description
The drop-down menu includes the options available for defining the type of underlying product for each
repline.


Product Type
This field refers to the type of product associated with the loans comprising the collateral pools underlying
the deal.


Property Address
The street address of the subject property.


Purchase Money Mortgage Loan
A mortgage loan used to finance the purchase of real property.


Rate/Term Refinance Mortgage Loan
A refinance transaction in which the new mortgage loan amount is limited to no more than 2% greater than
the sum of the remaining balance of the previous first mortgage loan, closing costs (including prepaid
items), points, and the amount required to satisfy any mortgage liens that are more than one year old (if the
borrower chooses to satisfy them).


Raw Land
Acreage with no added physical improvements, such as landscaping, drainage, streets, utilities, and
structures.




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Recovery Month
The period (in months) when principal pre-payments begin.


Receive Rate (%)
The Receive Rate represents the rate that the swap counterparty will pay to the securitization trust. Users
may enter a fixed value or an index or a vector in this field. If ‘vector’ option is selected, then users are
required to input the vector information on the Vectors screen.


Refinance Loan’s Prior Loan Origination Date
The origination date of the mortgage loan being refinanced.


Refinance Loan’s Prior Loan Purchase Price
The purchase price of the property which is collateralizing the mortgage loan being refinanced.


Remaining Payment Term
Defined in months, this is typically equal to the remaining amortization term to maturity.


Repline ID
A unique repline identifier used in the waterfall.


Reverse Mortgage Loan
A non-recourse mortgage loan generally made to an individual 62 years or older on one’s house that
requires no repayment for as long as one lives in such home.


Risk Grades
Standard & Poor’s Risk Grades stratify the relative foreclosure risk by encompassing mortgage, property
and borrower characteristics. Standard & Poor’s Risk Grades segregate the mortgage loan into a number of
defined categories. RG1 loans have the lowest degree of default risk.


S&P Indices Month
Indicates the current reference month for the S&P Indices’ vectors being used as part of S&P Criteria.


Sales Price
The negotiated price of a given property between the buyer and seller.


Second Home
A borrower’s property that is not their primary residence.


Second Lien Mortgage Loan
A loan secured by a mortgage or trust deed, which lien is junior to another mortgage or trust deed. This is
the mortgage loan which is being analyzed.




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Self Employed Borrower
A borrower who owns at least 25% in a partnership or a corporation, is a sole proprietor, or obtains at least
25% of their annual income from commissions or bonus.


Servicer Advance
This field provides information about the Servicer advance and coverage provided for this deal. The default
value is “Principal & Interest”; other choices include “Interest Only” and “No Advance”.


Servicing Fees Percentage (%)
The management fee paid to the Bond Insurer entity for the deal, expressed as a percentage.


Shadow Rating
Typically used for a Bond Insured transaction, it represents the rating category desired by the insurer for
use in Standard & Poor’s capital charge calculation.


Simultaneous Second Mortgage Loan
A second lien mortgage loan on a property whose first lien mortgage loan is being submitted for analysis.
The originator of the second lien mortgage loan may differ from the originator of the first lien mortgage
loan. To the extent that the entity submitting the first lien mortgage loan for analysis knows that a second
lien exists, it should be reported at the time of loan file submission.


Single Family Residence
A residential dwelling unit occupied by a single family. The dwelling unit may be detached from other
dwelling units or may be part of one or more attached units.


Special Servicer
A servicer who is responsible for managing all delinquent loans upon a specified stage of delinquency, as
well as directly performing loss mitigation functions and real estate owned management.


Spread Holiday
The period (in months), starting from the first payment period, during which 100% of the excess spread is
directed into a Cash Residual Account and no funds from the excess spread are used for turboing in the
principal payments.


Subprime/Home Equity Mortgage Loan
A first or junior-lien mortgage loan made to a borrower who has a history of delinquency or other credit
problems. Standard & Poor’s considers subprime borrowers to have a FICO credit score of 659 or below.


Tax Lien
A lien placed upon a residential property by a municipality for failure to pay property taxes and other
municipal assessments.


Three/Four Family Property
A residential structure that provides living space (dwelling units) for three to four families, although
ownership typically is enhanced by a single deed.


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Title I Mortgage Loan
A junior lien-mortgage loan insured under the Housing and Urban Development’s (HUD’s) Title I home
improvement loan program.


Total Collateral Balance ($)
This field is a calculated field displaying the aggregate balance from the REPLINES screen. This field is
not available for user input


Total Debt to Income Ratio
The total monthly liabilities of the borrower including the debt on the subject property, divided by the total
monthly income of the borrower and co-borrower, expressed as a percentage. (for details on the calculation
of Income-see Appendix A; for details on the calculation of Debt-see Appendix B).


Total Other Debt
The liabilities of the borrower excluding the debt on the subject property. These liabilities include: all
installment loans, revolving charge accounts, other real estate loans, alimony, child support and other debts
of a continuing nature (for details on the calculation of Other Debt-see Appendix B).


Tranche Name
Refers to the unique identifier for each tranche. The name is used in the waterfall to make distributions to
this class of bonds.


Tranche Rating
Refers to the desired rating level for a tranche.


Tranche Type
Indicative of whether the specific tranche is a NAS, Interest Only (IO) tranche, NIM or Multiple type of
tranche. If either of the “NAS” or “IO” options is selected from the drop down list, users are required to
enter values in related fields on this screen.


Two Family Property
A structure that provides living space (dwelling units) for two families, although ownership of the structure
is enhanced by a single deed.


Two Step Mortgage Loan
A fixed rate mortgage loan whose coupon resets once at a specified date and is fully amortizing over thirty
years.
• 3/27 Two Step: the interest rate reset occurs 36 months after origination;
• 5/25 Two Step: the interest rate reset occurs 60 months after origination;
• 7/23 Two Step: the interest rate reset occurs 84 months after origination;
• 10/20 Two Step: the interest rate reset occurs 120 months.


Use Bond Insurer Default Curve
Indicates whether the deal has at least one tranche that is bond insured and that the user wants to use the
Bond Insurer Default Curve.


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VA Mortgage Loan
A mortgage loan insured under the Veteran Administration’s (VA) mortgage loan program.


Validated Automated Underwriting System
A system that evaluates borrower and loan characteristics for loan default risk. State the code of the system
which has been approved by Standard & Poor’s. The process for validating such automated underwriting
system includes:
• a review of the system development process
• analysis of systems test and results including a review of comparative statistical measures
• review of the documentation requirement, including collateral assessment guidelines
• audit of the quality control and fraud checks incorporated into the system
• empirical analysis of the predictive power of the system through studies of the results of scoring
     current production validation of the predictive power of the system with Standard & Poor’s internal
     risk model


WA First Adjust. Cap
Refers to the weighted average maximum amount the rate is allowed to adjust (increase/decrease) on the
first adjustment date. (It is expressed as a percentage.)


WA Margin
Refers to the percentage spread over the specified index.


WA Max. And Floor Rates
Refers to the weighted average maximum and minimum rates for the duration of the repline. (It is
expressed as a percentage.)


WA Periodic Cap
Refers to the weighted average maximum amount the rate is allowed to adjust in any period after the first
adjustment date. (It is expressed as a percentage.)




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