Mortgage Glossary

Earnest Money Deposit

A deposit submitted with a purchase offer to show that the buyer's offer is being made in "good faith."

Easement

A right to the use of, or access to, land owned by another.

Employer-Assisted Housing

A program in which companies assist their employees in purchasing homes by providing assistance with the down payment, closing costs, or monthly payments.

Encroachment

The intrusion onto another's property without right or permission.

Encumbrance

Any claim on a property, such as a lien, mortgage or easement.

Equal Credit Opportunity Act (ECOA)

A federal law that requires lenders to make credit equally available without regard to the applicant's race, color, religion, national origin, age, sex, or marital status; the fact that all or part of the applicant's income is derived from a public assistance program; or the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act.

Equity

The owner's interest in a property, calculated as the current fair market value of the property less the amount of existing liens.

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

An account that a mortgage servicer establishes on behalf of a borrower to pay taxes, insurance premiums, or other charges when they are due. Sometimes referred to as an "impound" or "reserve" account.

Escrow Analysis

The accounting that a mortgage servicer performs to determine the appropriate balances for the escrow account, compute the borrower's monthly escrow payments, and determine whether any shortages, surpluses or deficiencies exist in the account.

Eviction

The legal act of removing someone from real property.

Exclusive Listing

A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time.

Executor

A person named in a will and approved by a probate court to administer the deposition of an estate in accordance with the instructions of the will.