SECONDARY RESIDENCE >> A property used by a person as a second residence, not as an investment.

SECTION 32 >> A section of the Federal Truth-in-Lending Act pertaining to high fee loans and the restrictions and compliance issues with which this type of loan transaction must comply.

SECURITY INSTRUMENT >> The security instrument is used to identify and encumber the real property used as collateral for the loan. It?s notarized and then recorded with the county in which the property is located. Once recorded, it secures an interest in, or lien against, the property. The security instrument used is state specific. Examples are, deed of trust, security deed, a trust deed or a mortgage.

SERVICING >> The operations a lender or servicer performs post-origination to manage a loan, such as collection of payments, payment of taxes, insurance, property inspections and so on.

SERVITUDE >> A burden resting upon one estate for the benefit or advantage of another. An agreement granting limited permission to use the property.

SETTLEMENT STATEMENT >> Final statement of the actual settlement costs of the loan . A Federal requirement under RESPA.

SIMPLE INTEREST >> Interest computed on the unpaid principal balance of a loan, as opposed to compounded interest.