Glossary and Acronyms "S"


The administration of a mortgage loan including the collection of payments, release liens, and payment of property insurance and taxes. Servicing is usually performed by the lender or the lenders agent for a fee. (Ref: What are "Servicing transfers"?)

Simple Interest

The interest payed on  the principal only and not on accumulated interest.


The completion of a property’s sale or purchase, or the completion of all steps necessary to receive the proceeds of (and create an obligation to repay) a loan. (Ref: What is "Settlement"?    What are Settlement services ?     What is a Settlement/Closing agent?)

Settlement agent

A person or entity that conducts the settlement to transfer title of the property and to close on the mortgage loan. May be an attorney, a title insurer, a title agent or an escrow agent. (Ref: What is a Settlement/Closing agent?)

Settlement costs

(Ref: Settlement and Closing Costs)

Short sale

A commonly used alternative to a foreclosure. If a homeowner can no longer afford to make mortgage payments and their home is worth less than they owe, a short sale allows them to sell the home to pay off the mortgage. In a short sale, the lender agrees to accept an amount less than is actually owed on the loan, based on a showing of financial hardship.

Single-family residence

A detached individual housing unit. The property shares no common ground with neighboring properties and shares no wall or roof, but can be part of a planned unit development (PUD).

Single family properties

An individual, freestanding, unattached dwelling unit, typically built on a lot larger than the structure itself.

Start rate

The starting interest rate for an adjustable-rate mortgage (ARM) loan or variable-rate home equity line of credit. Also known as an initial rate or intro rate. It provides lower interest and lower monthly payments at the beginning but may adjust at the next adjustment period.

Subordinate financing

Any mortgage or other lien that has a priority lower than that of the first mortgage. The subordinate loan has a claim to payment in a foreclosure only after the first mortgage is paid.

Swing loan

(Ref: Bridge loan)

S&P 500 Index

An unmanaged, market capitalization-weighted index of 500 stocks of leading large-cap U.S. companies in leading industries; gives a broad look at the U.S. equities market and those companies’ stock price performance.

S&P MidCap 400 (S&P 400) Index

An unmanaged, market capitalization-weighted index of 400 stocks of medium-sized U.S. (those with a market capitalization of $1 billion to $4.4 billion) $1.4 billion to $5.9 billion.

S&P North American Technology Sector Index

An unmanaged, modified, market capitalization-weighted index that measures the performance of the technology sector of the U.S. equity market.

S&P SmallCap 600/Citigroup Value Index

An unmanaged index that measures the performance of the small-capitalization value sector of the U.S. equity market.

S&P/Citigroup International Treasury Bond Ex-U.S. Index (Hedged)

An unmanaged index that measures the performance of Treasury bonds with a remaining maturity of one year or more issued in local currencies by developed market countries outside the United States. Each country’s bonds are market value-weighted, and country weights are modified market weighted to balance levels of debt outstanding and to achieve diversification.

Sales charge

A charge for buying an investment.

SEC 30-day Yield

An unmanaged, market capitalization-weighted index of 500 stocks of leading large-cap U.S. companies in leading industries. This index gives a broad look at the U.S. equities market and the stock price performance of those 500 companies.

Sector fund

A fund that invests in a particular or specialized segment of the marketplace, such as stocks of companies in the software, health care or real estate industries.

Securities and Exchange Commission (SEC)

A government agency created by congress in 1934 to regulate the securities industry and to help protect investors. The SEC is responsible for ensuring that the securities markets operate fairly and honestly.


A general term for stocks, bonds, mutual funds and other investments.

Separate account

An insurance company account that is segregated or separated from the insurance company’s general assets. This also refers to a fund managed by an investment adviser for a single plan.


A representation of ownership in a company or investment fund.

Share class

Some investment funds and companies offer more than one type or group of shares, each of which is considered a class. Examples include “class A,” “Advisor” or “Institutional” shares. Each class has different fees and expenses, but all of the classes invest in the same pool of securities and share the same investment objectives.


An owner of shares in an investment fund or corporation.

Shareholder-type fees

Any fee charged against an investment for purchase and sale, other than the total annual operating expenses.

Sharpe ratio

Calculated using standard deviation and excess returns over the 3-month U.S. Treasury Bill to determine reward per unit of risk. The higher the Sharpe ratio, the better the fund’s historical risk adjusted performance. The Sharpe ratio is calculated for the past 36-month period by dividing a fund's annualized excess returns by the standard deviation of a fund's annualized excess returns.

Single premium / Single purchase payment

A single premium annuity is a deferred annuity that lets you put money into your annuity account only once, when you first purchase the product.

Small capitalization (Cap)

Refers to either a small company stock or an investment fund that invests in the stocks of small companies.

Small-cap fund

A fund that invests primarily in small-cap stocks.

Small-cap stocks

Stocks of companies with smaller market capitalization. Small caps are often considered to offer more growth potential than large and mid caps, but they may come with more risk.

Stable value fund

An investment fund that seeks to preserve principal and provide consistent returns and liquidity. Stable value funds include collective investment funds sponsored by banks or trust companies, as well as contracts issued by insurance companies.

Standard & Poor’s 500 Index

An unmanaged, market capitalization-weighted index of leading large-cap U.S. companies in leading industries. This index gives a broad look at the U.S. equities market and the stock price performance of those 500 companies.

Standard deviation

A statistical measure of risk. It reflects the extent to which an asset’s rate of return may fluctuate from period to period. When a fund has a high standard deviation, the predicted range of performance is wide, implying greater volatility. Morningstar computes standard deviation using the trailing monthly total returns for the appropriate time period. All of the monthly standard deviations are then annualized.


A security that represents an ownership interest in a corporation.

Stock fund

A fund that invests primarily in stocks.

Stock symbol

An abbreviation using letters and numbers assigned to securities to identify them.

Summary prospectus

A short-form prospectus that mutual funds may use with investors. A summary prospectus is used if a long-form prospectus and additional information is available online or on paper, upon request.

Soft Second Loan

A loan in which its entirety, or a portion of it, can be forgiven or deferred for a period by the lendor when certain conditions are met.

Special Warranty Deed

Seller promises that there were no defects entitled that arose or were created while seller owned the property. This does not make promises about defects arising while someone prior to the seller owned the property.

Standard Payment Calculation

The method used to determine the monthly payment required to repay the remaining balance of a mortgage, in substantially equal installments over the remaining term of the mortgage, at the current rate.

Statute of Frauds

The requirement that certain kinds of contracts be memorialized on writing and signed by the party to be charged with sufficient content to evidence the contract.

Step Rate Mortgage

A loan which allows for gradual interest rate increase during the first few years of the loan.

Subordinate Financing

Debt that ranks behind the first secure lender, and means that secure lenders will be payed back before subordinate debt holders.

Subsidized Second Mortgage

An alternative financing option for low and moderate income households


The measuring of a tract of land and its boundaries and contents. Also refers to the map indicating the results of such measurements.

Sweat Equity

Financial equity created on a property by the owners labor and improving the property.

Service Members Civil Relief Act

Offers protection for service members, and sometimes their family members. Examples include reduced interest rates, postponement of foreclosures, deferred income taxes, eviction prevention, protection against default judgements, postponed civil court matters, protection for small business owners, termination of lease agreements, prevention of repossession of property, life insurance coverage protection, and suspension of professional liability insurance. This act protects active duty service members, including National Guard and reserve members, who have been activated by the federal government. Many of these protections extend to the family of service members. (Ref: Service Members Civil Relief Act)

Seller Take Back

When a seller wants to close a sale of real estate but the buyer is not yet able to fully fund the purchase, the parties can close the sale with the seller taking from the buyer a purchase money note and mortgage in lieu of an all-cash payment.

Seller Carry Back

When a seller acts as the bank or lender and carries a second mortgage on the subject property, which the buyer pays down each month.

Secure and Fair Enforcement Act (SAFE Act) 2008

Designed to enhance consumer protection and reduce fraud through the setting of minimum standards for the licensing and registration of state-licensed mortgage loan originators. Mortgage Loan Originators who work for an insured depository or its owned or controlled subsidiary that is regulated by a federal banking agency, or for an institution regulated by the Farm Credit Administration, are registered. All other mortgage loan originators are licensed by individual states. (Ref: What is SAFE Act and CSBS/ARRMR Model State Law ?


Collateral given or pledged to guarantee the fulfillment of an obligation, especially that a creditor will be repaid (usually with interest) any money or credit extended to a debtor.

Secured loans

Loans for which the borrower gives the lender a lien on property such as an automobile, boat, other personal property or real estate that will serve as collateral for the loan.


The property that will be pledged as collateral for a loan. If the borrower defaults, the lender can sell the collateral to satisfy the debt.

Section 203(k) Loans

Section 203(k) insurance enables home buyers and homeowners to finance both the purchase of a house and the cost of rehabilitation through a single mortgage or to finance the rehabilitation of their existing homes.

Second Mortgage

A Mortgage that is junior to a first mortgage on the same property, but that is senior to any later mortgage.

Second home

A property occupied part-time by a person in addition to his or her primary residence.

Secondary Mortgage Market

The national market in which existing mortgages are bought and sold, usually on a packaged basis (Ref: What is "Secondary market"?)

Satisfaction of Mortgage

The complete payment of a mortgage. Also can refer to a discharge signed by the mortgagee or mortgage holder indicating that the property subject to mortgage is released or that the mortgage debt has been paid and the mortgage conditions have been fully satisfied.


The sale of property on the understanding, or with the express option, that the seller may lease the property from the buyer, usually immediately after the sale.



(Suspicious activity report)

Report required to be made to finCEN under the bank secracy act (BSA) when there is a suspicion of money laundering or fraud


Secure and Fair Enforcement for Mortgage Licensing


Software as a Service


Small Business Administration


Security and Exchange Commission


Special Flood Hazard Area


Single Family Residence


Systematically Important Financial Institution


Secondary Marketing Executive


Sarbanes - Oxley Act


Statement of Standards for Accounting and review service


Simplified supervisory formula approach


(stated income Stated asset). The loan only requires the borrower to state their income and assets, does not require verification.


(Service released premium)

Payment received by a lender on the sale of a closed mortgage loan to the secondary market.


(Social security number)


Apply Online       Check Loan Status      Upload Documents    Call Us: (214)699-4790

Back to Consumer Mortgage FAQ's