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HUD
Home Buying Glossary - M
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Maintenance Expenses - Costs incurred for the
day-to-day upkeep, such as management wages and benefits of
building employees, fuel, utility services, decorating and
repairs.
Maker
- A person who signs a negotiable instrument.
Management
Fee - The money paid to the insurer by a reinsurer for servicing
the business (that is, renewal billings, claim management,
etc.).
Mansard
Roof - A French style roof with a steep lower slope and a
very gentle upper slope.
Manufactured
Home - See Mobile Home.
Margin
- Under the terms of an adjustable rate mortgage (ARM), the
margin is a premium that a lender charges which is added to
the index. This
premium is typically two or three percentage points.
Once the lender specifies the margin, it remains fixed.
Margin
of Security - Lender's security that is the difference
between the mortgage amount and the value of the
property.
Marketable
Title - A title that is clear of objectionable liens and
encumbrances.
Market
Comparison
Approach
- A method of establishing market value by comparing the
subject property to properties of similar physical
composition, location and value that have sold recently.
Market
Price - See Sales Price.
Market
Rent - An estimate of what an investor can expect to
receive in rental income for a particular property.
Markup
- The percentage added to cost to determine selling price.
Market
Value - An estimate of the highest price a property would sell for
within a reasonable period of time, on the open market under
normal conditions, and between a willing, ready and able buyer
and seller.
Master
Lease - The original lease between the landlord and the
tenant when the tenant later subleases.
Maturity
- The terminating or due date of a note, loan or bond.
MBS
- See Mortgage-Backed Securities.
Mechanic’s
Lien - A
claim created by law for the purpose of securing priority
payment for work performed and material furnished by a
mechanic or other person who has done construction or repair
of a building. Such
a claim attaches to the land as well as buildings and
improvements erected on land.
Mediation
- A nonjudicial process to resolve disputes where a third
party acts as a facilitator to aid the parties in reaching an
agreement.
Megalopolis
- An urban sprawl.
Menace
- Threat of force that makes a contract voidable.
Merchantable
Title - See Marketable Title.
Meridians
- Government surveyors' north-south lines that intersect base
lines. Land is measured from the intersection of these
lines.
Metes
and Bounds - A method of legal description specifying the
perimeter of a parcel of land by use of measured distances
from a start point along specified boundaries, or bounds,
using monuments, or markers, as points of
reference.
Mile
- A measurement of distance that equals 5,280 feet (1,760
yards).
Military
Indulgence - A relief provision that can be made available
to a borrower who is in the military service.
Mill
- One-tenth of a cent (1/1,000 of a dollar) written as
$0.001. Property taxes are often expressed as
mills.
MIP
- See Mortgage Insurance Premium.
Misrepresentation
- Information that is provided to and is relied upon by a third
party as fact, but that is untrue and material to the risk
assumed. The
information may be provided with the knowledge that it is
untrue and with the intent to deceive, or provided as the
truth without knowing for a fact that it is not true.
Mitigation
- Alleviation, abatement or diminution of a loss.
MLS
- See Multiple Listing Service.
MMI
- See Mutual Mortgage Insurance.
Mobile
Home - A structure transportable in one or more sections,
designed and equipped to contain not more than two dwelling
units to be used with or without a foundation system.
Modification
Agreement
- Any agreement between the lender and the borrower that
permanently alters any of the terms of the original mortgage
or note.
Monument
- A fixed surveyor's market for metes-and-bounds description
that can be natural (such as a rock or tree) or artificial
(such as an iron stake).
Mortgage
- A pledge or security for the payment of a debt.
Mortgage-Backed
Securities
- Bond-type investment securities representing an undivided
interest in a pool of mortgages or trust deeds. Security guaranteed by the Government National Mortgage
Association (GNMA), issued to savings and loan associations,
mortgage bankers, commercial banks and other institutions.
The GNMA security holder is backed by the “full faith
and credit of the United States.”
Mortgage
Banker - An entity or individual active in the field of mortgage
banking. Mortgage
bankers, as local representatives of regional or national
institutional lenders, act as correspondents between lenders
and borrowers.
Mortgage
Banking - 1) The
origination, sale and servicing of mortgage loans by a firm or
individual. 2)
The packaging of mortgage loans secured by real
property to be sold to a permanent investor with servicing
usually retained by the originator for the life of the loan
for a fee.
Mortgage
Broker - An individual or firm that acts as an agent for both the
borrower and the lender of a mortgage loan.
The broker places the borrower and lender in contact
with each other, and receives a commission from the borrower
if a loan results. Unlike a mortgage banker, a mortgage broker does not
negotiate the terms of the loan, issue a loan commitment,
prepare the loan documents or service the loan.
Mortgage
Commitment
- An agreement between the borrower and the lender to disburse
a mortgage loan at a future date if specified terms and
conditions are satisfied.
Mortgagee
- The institution, group or individual that lends money on the
security of pledged real estate; the association, the lender.
Mortgage Insurance
- Insurance written by an independent mortgage guaranty
insurance company that protects the mortgage lender against
loss incurred by a mortgage default, thus enabling the lender
to lend a higher percentage of the sales price.
The federal government writes this form of insurance
through the Federal Housing Administration (FHA) and the
Veteran’s Administration (VA).
Mortgage Insurance Premium
- The amount paid
by a mortgagor for the mortgage guaranty insurance either to
the FHA or a private mortgage guaranty insurance company.
Mortgage
Lender - A classification used to describe those institutions or
organizations at least partially engaged in the primary
mortgage market--that is, extending funds directly to the borrower.
Mortgage
Loan Correspondent
- A mortgage banker who services mortgage loans as an agent for
either the owner of the mortgage or an investor. Also applies to the mortgage banker in the role of originator
of mortgage loans for an investor.
Mortgage
Note - A written promise to pay a sum of mney at a stated interest
rate during a specified term.
It is usually secured by a mortgage.
Mortgage
Pass-Through Certificate
- Securities that
represnt the purchaser’s ownership of an undivided interest
in a pool of mortgages, typically for residential loans.
Unlike bonds, these securities constitute a sale of
assets by tyhe originator/issuer.
There may be legal obligation for repayment on the part
of the originator/issuer, other than to “pass through”
payments collected on the underlying mortgages or credit
insurance policies.
Mortgage
Portfolio
- The aggregate of mortgage loans held by an investor or
serviced by a mortgage banker.
Mortgagor
- The owner of real estate who pledges his property as security
for the repayment of a debt;
the borrower.
Mudsill
- The lowest board on a house that rests on the foundation.
Multiple
Borrowers
- Two or more borrowers who are not husband and wife.
Multiple
Listing Service - A computerized listing of all properties
offered for sale by member real estate brokers. Buyers
may only gain access to the MLS by working with a member
broker.
Muniments
of Title - Deeds.
Mutual
Mortgage Insurance - Monthly mortgage insurance required
for FHA loans to protect the lender from buyer default.
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