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F-3-04, Acronyms and Glossary of Defined Terms: D (08/17/2016)

data breach

An incident of unauthorized access or use of borrower information that results in any loss, unauthorized use, disclosure, unauthorized access, or unauthorized acquisition of information that is considered NPI (as defined by the Gramm-Leach-Bliley Act, 15 USC § 6809).

deferred payment obligation (DPO)

The unpaid portion of the MI claim where the failure to pay the full amount due on the claim is solely attributable to the mortgage insurer’s financial inability to pay or its insolvency.

deferred payment obligation (DPO) mortgage insurer

A mortgage insurer that is insolvent or has the financial inability to pay its claims in full.

delinquency advance

An amount advanced by a servicer in respect of interest or principal on one or more mortgage loans, as required by their servicing contract, even though the servicer has not collected the actual funds from the related borrowers.


A demand issued by Fannie Mae to a seller/servicer or other responsible party to provide a specific servicing remedy as provided in the Lender Contract. The issuance of a notice of servicing defect or request for payment of compensatory fees is not considered a “demand.”

demand deposit account

A bank account in which the funds are available for withdrawal at any time without penalty.


A loss in value that is caused by deterioration in the physical condition of a property’s improvements.

direct surety bond

A class of bond that is written to afford protection for the direct acts of the principal in the event of a loss caused by the principal’s negligence, lack of ability, or dishonest act.


Debt-to-income ratio


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