Glossary

Term	Definition
DIM	A DIM or Drop-in Module, can be thought of as a widget which is embedded in the front end of your application using a simple code snippet. We have built DIMs for a variety of common use-cases including student loan refinancing. While DIMs look great out of the box, they can also be white-labeled to match your branding.
Disbursement	Loan disbursement refers to the process of releasing the loan funds to the borrower or to a third party on behalf of the borrower. When a loan is approved and the borrower has signed the loan agreement, the lender will disburse the loan funds according to the terms of the loan.
Impacts	Loan impact calculations are calculations that determine the potential impact of a loan on a borrower's finances. These calculations can help a borrower understand the cost of a loan and how it will affect their budget over time.
Origination	Origination refers to the process of creating a new loan or credit account. This process typically involves an application, underwriting, and approval, and it results in the borrower receiving the funds or credit that they applied for. In the context of a mortgage, for example, origination refers to the process of applying for and obtaining a new home loan. The borrower submits an application, which includes information about their income, assets, and creditworthiness, and the lender reviews this information to determine whether to approve the loan and under what terms. If the loan is approved, the lender will create the loan agreement and disburse the funds to the borrower.
Prequalification	Loan prequalification is the process of determining whether a borrower is likely to be approved for a loan, and for how much money, based on a preliminary review of their financial and credit information. The prequalification process typically involves the borrower providing information about their income, employment, assets, and debts, as well as their credit score and credit history. The lender will use this information to evaluate the borrower's ability to repay the loan and to determine their risk profile.
Refinance	Refinancing is the process of replacing an existing loan with a new one that has more favorable terms. Typically, people refinance to take advantage of lower interest rates or to change the terms of their loan to better suit their financial goals. For example, someone with a high-interest mortgage might choose to refinance their mortgage to get a lower interest rate and reduce their monthly payments. Or, someone with credit card debt might choose to refinance their debt with a personal loan that has a lower interest rate and a fixed repayment term. Refinancing can also be used to change the term of a loan. For example, someone with a 30-year mortgage might choose to refinance to a 15-year mortgage to pay off their loan faster and save on interest charges.
Servicer	A loan servicer is a company that collects payments on a loan on behalf of the lender or investor who owns the loan. Loan servicers are responsible for processing loan payments, maintaining records of the loan balance and payment history, sending statements to borrowers, and handling customer service inquiries related to the loan. Loan servicers are often different from the original lender who originated the loan. In many cases, lenders sell the rights to service loans to specialized loan servicing companies. This allows lenders to generate revenue by originating loans, while also freeing up resources to originate new loans by outsourcing the loan servicing functions. Loan servicers are responsible for ensuring that loans are serviced in compliance with all applicable laws and regulations. They also work with borrowers who are experiencing financial difficulties to offer repayment plans, loan modifications, and other forms of assistance to help the borrower avoid default and foreclosure.
Webhooks	A webhook is a mechanism used in software development to automate the exchange of information between different software applications. It is a way for one application to send data to another application in real-time, rather than requiring the second application to periodically request the data. A webhook works by establishing a URL endpoint in the receiving application that can accept incoming data from the sending application. When an event occurs in the sending application that triggers a webhook, the sending application sends a message to the URL endpoint in the receiving application, containing the relevant data. The receiving application can then process the data in real-time and take any required actions based on the information received.

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