Mortgage 101 / Mortgage Glossary
View our in-depth Mortgage Glossary below.
View our in-depth Mortgage Glossary below.
A federal law that deals with discrimination (Regulation “B”).
The difference between a property’s fair market value and the current indebtedness.
The reversion of property to the state if the owner dies intestate and without heirs.
Documents entrusted to a disinterested third party who assumes responsibility for disbursement of paperwork and funds.
That portion of a mortgagor’s monthly payment held by the lender to pay for real estate taxes, hazard insurance, and mortgage insurance, as the become due.
The ownership interest of an individual in real property which is measured by its potential duration; the degree, quantity, nature, and extent of interest that a party has in real property.
A written statement that bars the signer from making a claim that is inconsistent with that party’s prior statement. An estoppel certificate verifies the loan balance and is sometimes referred to as a “payoff letter.”
A provision in a mortgage or note in which the lender waives the right to a deficiency judgment against the borrower and the borrower is relived of personal liability to repay the loan.
To sign or to ratify a document.
1968 act (amended in 1974 and 1988) providing the HUD Secretary with fair housing enforcement and investigation responsibilities. A law that prohibits discrimination in all facets of the homebuying process on the basis of race, color, national origin, religion, sex, familial status, or disability.
The developer of a credit scoring system used by many credit-reporting agencies.
Primarily used to determine payment standard amounts for the Housing Choice Voucher program, to determine initial renewal rents for some expiring project-based Section 8 contracts, to determine initial rents for housing assistance payment contracts in the Moderate Rehabilitation Single Room Occupancy program, and to serve as a rent ceiling in the HOME rental assistance program.
The amount of money that would probably be paid for a property in a sale between a willing seller, who does not have to sell, and a willing buyer, who does not have to buy.
HUD regulates two housing-related government-sponsored enterprises, Fannie Mae and Freddie Mac, which were chartered by Congress to create a secondary market for residential mortgage loans. They are considered “government-sponsored” because Congress authorized their creation and established their public purposes. ?
A government agency that guarantees mortgages secured by a residential properties located in rural areas if the borrower’s income is less that HUD’s local median income for the area.
A federal agency that provides assistance to victims of natural disasters. FEMA publishes Flood Insurance Rate Maps.
A private corporation authorized by Congress in 1970 to provide secondary mortgage market support for conventional mortgages originated by Savings & Loan Associations. Commonly known as “Freddie Mac”. Today, FHLMC is a publicly owned corporation.
Provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single-family, multifamily, and manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934.
A privately owned corporation created by Congress in 1938 to support the secondary mortgage market by purchasing and selling government underwritten residential mortgages. Today, FNMA purchases more conventional mortgages than FHA or VA and their stock is publicly traded. Commonly known as “Fannie Mae.”
Published by the Office of the Federal Register, National Archives and Records Administration (NARA), the Federal Register is the official daily publication for rules, proposed rules, and notices of federal agencies and organizations, as well as executive orders and other presidential documents.
A federal agency that monitors advertising practices and investigates and prosecutes unfair and deceptive trade practices.
The most complete ownership in land with indefinite duration, freely transferable, and inheritable.
A party in a position of trust and confidence for another.
An economic measurement of the cost of funds used as a base to determine the periodic interest rate adjustments for Adjustable Rate Mortgages. Common indexes include 1 year Treasury Bills, and both the 4th and 11 Federal Home Loan Bank District Cost of Funds.
A mortgage having priority over all other voluntary liens against certain property, as evidenced by recording; the earliest recorded mortgage remaining unpaid.
