S

Seasoned Loan
A term referring to a mortgage loan that is older than one year.

Second Mortgage
The second lien on a property that is used to secure a loan.

Secondary mortgage market
This is the arena where the selling, trading and buying of existing loans among lenders and investors takes place.

Securitization
Securitization is the process of selling non-conventional loan packages to investors (public or private) who represent an interest in the cash flow generated by asset-backed loans. Loans are sold to a trustee (for cash), who in turn sells the loan (in bond form) to investors.

Self-Employed
A term referring to an individual who collects more that 24 percent of his/her income from a business in which he/she has ownership.