Title Insurance Dictionary-Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

W

Waiver
Relinquishment of a right.

Warehouse Fee
Many mortgage firms must borrow funds on a short term basis in order to originate loans which are to be sold later in the secondary mortgage market (or to investors). When the prime rate of interest is higher on short term loans than on mortgage loans, the mortgage firm has an economic loss which is offset by charging a warehouse fee.

Warehousing
The borrowing of funds by a mortgage banker on a short-term basis using permanent mortgage loans as collateral. This form of interim financing is used until the mortgages are sold to a permanent investor.

Warranty Deed
A deed conveying the title to a property with a warranty of clean, clear marketable title

Wraparound
The debt secured includes an existing debt already on the property. The payments made to the holder of the wraparound include payments due on the existing loan and the holder must forward the appropriate portion of each payment to the existing noteholder. Often used to avoid a PREPAYMENT PENALTY or a DUE ON SALE CLAUSE. Can refer to a wraparound DEED OF TRUST or CONTRACT FOR DEED.

Wraparound Mortgage
Results when an existing assumable loan is combined with a new loan, resulting in an interest rate somewhere between the old rate and the current market rate. The payments are made to a second lender or the previous homeowner, who then forwards the payments to the first lender after taking the additional amount off the top.