Secondary Financing
A loan secured by a mortgage or trust deed, which line is junior (secondary) to another mortgage or trust deed.

Second mortgage
A mortgage which ranks after a first mortgage in priority. Properties may have two, three, or more mortgages, deeds of trust, or land contracts, as liens at the same time. Legal priority would determine whether they are called a first, second, third, etc. lien.

Servicing
The duties of the mortgage banker as a loan correspondent as specified in the servicing agreement for which a fee is received. The collection for an investor of payments, interest, principal, and trust items such as hazard insurance and taxes, on a note by the borrower in accordance with the terms of the note. Servicing also consists of operational procedures covering accounting, bookkeeping, insurance, tax records, loan payment follow-up, delinquency loan follow-up and loan analysis.

Servicer
After a mortgage loan closes, the loan servicer collects the payments, manages escrow accounts, pays escrowed taxes and insurance, and manages delinquent payments. Lenders often "release" servicing to another business, which means that a home buyer will not necessarily send house payments to the original lender.

Settlement
The closing of a mortgage loan.

Settlement Statement
A statement prepared by broker, escrow, or lender, giving a complete breakdown of costs involved in a real estate sale. A separate statement is prepared for the seller and buyer.

Settlor
An individual who establishes a trust in order to transfer property. (See Grantor)

Share
An individual unit of ownership in a publicly owned corporation or mutual fund.

Stock Split
A method of reducing stock price by allocating newly issued stock to shareholders according to their current holdings.

Successor Trustee or Executor
An individual or institution taking the place of a trustee or executor unable to continue the responsibilities designated in the trust agreement or will.

Survey
The measurement of the boundaries of a parcel of land, its area, and sometimes its topography.

Sweat Equity
A program which allows a purchaser to do work on the property in place of all or part of the down payment and other costs of purchase.