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F-3-02, Acronyms and Glossary of Defined Terms: B (10/12/2022)

bankruptcy cramdown

A bankruptcy cramdown is the process by which a bankruptcy court modifies the terms of a loan over the creditor's objection. A cramdown can extend the terms of a loan, reduce the interest rate, and divide a borrower’s debts into secured and unsecured portions. If the debt is divided into secured and unsecure portions, the secured portion is equal to the value of the property as determined by the court and the unsecured portion is equal to the difference between the total debt and the value of the property as, determined by the court. The secured portion of the debt should be paid by the borrower in full under the plan, and the unsecured portion will be treated as set forth in the plan, which may result in less than payment in full of the unsecured portion.

beneficial easement

An easement is that generally enhances the use or value of a property by allowing the property owner a limited use of another property, usually a contiguous property.

bifurcated mortgage loan

A mortgage loan or property for which the current servicer is not the responsible party for the selling representations and warranties and/or for the prior servicing responsibilities or liabilities.

Borrower Response Package (BRP)

All of the required documentation that the borrower is required to provide in response to a foreclosure prevention solicitation.

Borrower Solicitation Package

A standardized foreclosure prevention solicitation package that provides the borrower with information on all workout options and the required documentation that must be submitted to be evaluated for a workout option.


broker price opinion


basis points

burdensome easement

An easement that may be detrimental to the use or value of the security property.

business day

A day other than (1) a Saturday or Sunday, (2) a day on which the Federal Reserve Bank of New York (or other agent acting as Fannie Mae’s fiscal agent) is authorized or obligated by law or executive order to remain closed, or (3) a day on which the main offices of Fannie Mae in the District of Columbia are scheduled to be closed. In this Guide, the word “day” without the modifier “business” refers to a calendar day.

buydown account

An account in which funds are held so that they can be applied as part of the monthly payment as each payment comes due during the period that an interest rate buydown plan is in effect.