GLOSSARY

This glossary is Alphabetical please choose your letter below.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

m

Mandatory Delivery Commitment
An agreement that a lender will deliver loans or securities by a certain date at agreed-upon terms.

 

Mandatory Disclosure
The array of laws and regulations dictating the information that must be disclosed to mortgage borrowers, and the method and timing of disclosure.

 

Manufactured Housing
A house built entirely in a factory, originally titled as a vehicle, transported to a site and installed there. They are usually built without knowing where they will be sited, and are subject to a Federal building code administered by HUD. Also called manufactured home.

 

Margin
The amount a lender adds to the index on an adjustable rate mortgage to establish the adjusted interest rate.

 

Market Niche
A particular combination of loan, borrower and property characteristics that lenders use in setting prices and underwriting requirements. These characteristics are believed to affect the default risk or cost of the loan.

 

Market Value
The highest price that a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time.

 

Maturity
The period until the last payment is due. This is usually but not always the term, which is the period used to calculate the mortgage payment.

 

Maximum Loan Amount
The largest loan size permitted on a particular loan program.

 

Maximum Loan to Value Ratio
The longest period for which the lender will lock the rate and points on any program.

 

Maximum Lock
The maximum allowable loan-to-value ratio on the selected loan program.

 

Medium Term Notes
Unsecured general obligations of Fannie Mae with maturities of one day or more and with principal and interest payable in U.S. dollars.

 

Minimum Down Payment
The minimum allowable ratio of down payment to sale price on any program.

 

MIP: Mortgage Insurance Premium
MIP is the one-half percent borrowers pay each month on FHA insured mortgage loans. It is insurance from FHA to the lender against incurring a loss due to the borrower's default. On September 1, 1983 the MIP was changed to a one time charge to the borrowers.

 

Mobile Home
An obsolete term used to describe a manufactured home. A factory-assembled residence consisting of one or more modules, in which a chassis and wheels are an integral part of the structure, is titled as a vehicle and can be readied for occupancy without removing the chassis and/or wheels.

 

Modular House
A factory-assembled residence built in units or sections, transported to a permanent site and erected on a foundation. Excludes mobile/manufactured homes. A modular home is generally considered by lenders as being identical to a traditional site built home.

 

Modification
Any change to the original terms of a mortgage.

 

Monthly Debt Service
Monthly payments required on credit cards, installment loans, home equity loans and other debts but not including payments on the loan applied for.

 

Monthly Payment
Usually, the amount of PITI (principal, interest, taxes, and insurance) paid each month on a mortgage loan.

 

Mortgage
A legal document that pledges property to a lender as security for the repayment of the loan. The term also is used to refer to the loan itself.

 

Mortgagor
The borrower or home owner.

 

Mortgage Bank
A company that originates loans and resells them to secondary mortgage lenders like :Fannie Mae or Freddie Mac.

 

Mortgage Backed Security (MBS)
A Fannie Mae security that represents an undivided interest in a group of mortgages. Principal and interest payments from the individual mortgage loans are grouped and paid out to the MBS holders.

 

Mortgage Brokerage ( MBS )
A firm that originates and processes loans for a number of lenders.

 

Mortgage Company
A mortgage lender who sells all loans in the secondary market. As distinguished from a portfolio lender, who retains loans in its portfolio. Mortgage companies may or may not service the loans they originate.

 

Mortgage Commitment
An agreement between lender and borrower detailing the terms of a mortgage loan such as interest rate, loan type, term and amount.

 

Mortgage Insurance
Money paid to insure the mortgage when the down payment is less than 20 percent. see Private Mortgage Insurance, FHA Mortgage Insurance.

 

Mortgage Insurance Premium MIP
A monthly payment -usually part of the mortgage payment - paid by a borrower for mortgage insurance.

 

Mortgage Lender
The party who disburses funds to the borrower at the closing table. The lender receives the note evidencing the borrower's indebtedness and obligation to repay, and the mortgage which is the lien on the subject property.

 

Mortgage Modification
A loss mitigation option that allows a borrower to refinance and/or extend the term of the mortgage loan and thus reduce the monthly payments.

 

Mortgage Note
A written promise to pay a sum of money at a stated interest rate during a specified term. The note contains a complete description of the conditions under which the loan is to be repaid and when it is due.

 

Mortgage Payment
The regularly scheduled payment of interest and principal made by the borrower.

 

Mortgage Price
The interest rate, points and fees paid to the lender and/or mortgage broker. On ARMs, the price also includes the fully indexed rate and the maximum rate.

 

Mortgage Program
A bundle of mortgage characteristics that lenders see fit to distinguish as a distinct instrument. These include whether it is an FRM, ARM, or balloon; the term; the initial rate period on an ARM; whether it is FHA-insured or VA-guaranteed; and if is not FHA or VA, whether it is "conforming" (eligible for purchase by Fannie Mae or Freddie Mac) or "non-conforming". Also known as loan program.

 

Mortgage Rate
The cost or the interest rate you pay to borrow the money to buy your house.

 

Mortgage Shopping
Trying to find the best deal on a mortgage.

 

Multifamily Housing
A building with more than four residential rental units.

 

Mutual Fund
A fund that pools the money of its investors to buy a variety of securities.