MORTGAGE TERMINOLOGY

Unencumbered Property

A property that is free and clear of debts or liens.

Underwriting

The process of evaluating a loan application to determine the risk involved for the lender. Underwriting involves an analysis of the borrower's creditworthiness and the quality of the property itself.

Uniform Residential Appraisal Report (URAR)

The appraisal form which is utilized by appraisers of residential properties to estimate the value of properties to be financed with FHA, VA and conventional mortgages.

Uniform Settlement Statement (HUD-1)

A standard document prescribed by the Real Estate Settlement Procedures Act containing information for closing which must be supplied to both buyer and seller.

Unsecured Loan

A loan that is not backed by collateral.

Usury

The act of charging borrowers a rate of interest greater than that permitted by law.

Utilities

Basic services associated with developed areas that include provisions for electricity, telephone, gas, water, and garbage collection.