Uniform Commercial Code.
- Underlying Mortgage
Generally refers to the first mortgage when there is a wraparound mortgage.
Detailed process of evaluating a borrower's loan application to determine the risk involved for the lender. Underwriting usually involves an in-depth analysis of the borrower's credit history, as well as an examination of the value and quality of the subject property.
- Underwriting Fee
A fee charged by some lenders to cover the cost of the lender's analysis of the risk associated with a loan. For our comparison purposes, an underwriting fee is considered to be a lender fee.
- Undivided Interest
An ownership right to use and occupy property that is shared among more than one owner. No single co-owner may have exclusive rights or possession to any part of the property.
- Uniform Commercial Code (UCC)
Group of laws that are applicable to commercial transactions. Only a few of the laws have relevance to real estate transactions.
- Unsecured Loan
A loan that is not backed by collateral.
- Upfront Mortgage Insurance Premium
FHA charges the borrower an Upfront Mortgage Insurance Premium (Upfront MIP) for most transactions to financially support the FHA program. This fee is a percentage of the principal loan amount and is due at closing. The full amount can be financed as part of the loan amount or paid in cash.