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 -A-
Abstract (Of Title)
A summary of the public records relating to the
title to a particular piece of land. An attorney or title insurance company
reviews an abstract of title to determine whether there are any title defects
which must be cleared before a buyer can purchase clear, marketable, and
insurable title.
Acceleration Clause
Condition in a mortgage that may require the
balance of the loan to become due immediately, if regular mortgage payments are
not made or for breach of other conditions of the mortgage.
Acceptance
An offeree’s consent to enter into a contract
and be bound by the terms of the offer.
Additional principal payment
A payment by a borrower of more than the
scheduled principal amount due in order to reduce the remaining balance on the
loan.
Adjustable Mortgage Loan
Any mortgage that does not have a fixed
interest rate and a fixed payment for the term of the loan, or does not amortize
to zero at the end of the set term, when required payments are made on time.
Adjustable Rate Mortgage
A mortgage in which the interest rate is
adjusted periodically according to the movement in a pre-selected index.
Adjusted basis
The original cost of a property plus the value
of any capital expenditures for improvements to the property minus any
depreciation taken
Adjustment date
The date on which the interest rate changes for
an adjustable-rate mortgage (ARM).
Adjustment Interval
For an adjustable rate mortgage, the time
between changes in the interest rate charged. The most common adjustment
intervals are one, three or five years.
Adjustment
Period
The period that elapses between the adjustment
dates for an adjustable-rate mortgage (ARM).
Administrator
A person appointed by a probate court to
administer the estate of a person who died intestate.
Agreement of Sale
Known by various names, such as contract of
purchase, purchase agreement, or sales agreement according to location or
jurisdiction. A contract in which a seller agrees to sell and a buyer agrees to
buy, under certain specific terms and conditions spelled out in writing and
signed by both parties.
Amenity
A feature of real property that enhances its
attractiveness and increases the occupant’s or user’s satisfaction although
the feature is not essential to the property’s use. Natural amenities include
a pleasant or desirable location near water, scenic views of the surrounding
area, etc. Human-made amenities include swimming pools, tennis courts, community
buildings, and other recreational facilities.
Amortization
A payment plan, which enables the borrower to
reduce his debt gradually through monthly payments of principal.
Amortization
Schedule
A timetable for payment of a mortgage loan. An
amortization schedule shows the amount of each payment applied to interest and
principal and shows the remaining balance after each payment is made.
Amortization
Term
The amount of time required to amortize the
mortgage loan. The amortization term is expressed as a number of months.
Amortize
Reduce a debt by regular payments of both
principal and interest.
Amortization Schedule
A timetable for payment of a mortgage showing
the amount of each payment applied to interest and principal and the remaining
balance.
Annual Percentage Rate (APR)
The total yearly cost of a mortgage stated as a
percentage of the loan amount: includes the base interest rate, primary mortgage
insurance, and loan origination fee (points)
Annuity
An amount paid yearly or at other regular
intervals, often on a guaranteed dollar basis.
Application
A form used to apply for a mortgage loan and to
record pertinent information concerning a prospective mortgagor and the proposed
security.
Application Fee
The fee charged by the lender to the borrower
for applying for a loan.
Appraised
Value
An opinion of a property's fair market value,
based on an appraiser's knowledge, experience, and analysis of the property.
Appraiser
A person qualified by education, training, and
experience to estimate the value of real property and personal property.
Appraisal
A professional opinion of the market value of a
property.
Appreciation
An increase in the value of a house due to
changes in market conditions or other causes.
Assessed Value
The valuation placed upon property by a public
tax assessor for purposes of taxation.
Assessment
The process of placing a value on property for
the strict purpose of taxation. May also refer to a levy against property for a
special purpose, such as a sewer assessment.
Assessor
A public official who establishes the value of
a property for taxation purposes.
Asset
Anything of monetary value that is owned by a
person. Assets include real property, personal property, and enforceable claims
against others (including bank accounts, stocks, mutual funds, and so on).
Assignment
The transfer of a mortgage from one person to
another.
Assumable Loan
These loans may be passed on from a seller of a
home to the buyer. The buyer "assumes" all outstanding payments.
Assumption
Clause
A provision in an assumable mortgage that
allows a buyer to assume responsibility for the mortgage from the seller. The
loan does not need to be paid in full by the original borrower upon sale or
transfer of the property.
Assumption
Fee
The fee paid to a lender (usually by the
purchaser of real property) resulting from the assumption of an existing
mortgage.
Assumption of Mortgage
An obligation undertaken by the purchaser of
property to be personally liable for payment of an existing mortgage. In an
assumption, the purchaser is substituted for the original mortgagor in the
mortgage instrument and the original mortgagor is to be released from further
liability in the assumption, the mortgagee's consent is usually required.
Attorney-in-Fact
One who holds a power of attorney from another
to execute documents on behalf of the grantor of the power. The original
mortgagor should always obtain a written release from further liability if he
desires to be fully released under the assumption. Failure to obtain such a
release renders the original mortgagor liable if the person assuming the
mortgage fails to make the monthly payments. An "Assumption of
Mortgage" is often confused with "purchasing subject to a
mortgage." When one purchases subject to a mortgage, the purchaser agrees
to make the monthly mortgage payments on an existing mortgage, but the original
mortgagor remains personally liable if the purchaser fails to make the monthly
payments. Since the original mortgagor remains liable in the event of default,
the mortgagee's consent is not required to a sale subject to a mortgage. Both
"Assumption of Mortgage" and "Purchasing Subject to a
Mortgage" are used to finance the sale of property. They may also be used
when a mortgagor is in financial difficulty and desires to sell the property to
avoid foreclosure.
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Balance
Sheet
A financial statement that shows assets,
liabilities, and net worth as of a specific date.
Bankrupt
A person, firm, or corporation that, through a
court proceeding, is relieved from the payment of all debts after the surrender
of all assets to a court-appointed trustee.
Bankruptcy
A proceeding in a federal court in which a
debtor who owes more than his or her assets can relieve the debts by
transferring his or her assets to a trustee.
Before-tax income
Income before taxes are deducted.
Beneficiary
The person designated to receive the income
from a trust, estate, or a deed of trust.
Bill of
Sale
A written document that transfers title to
personal property.
Binder or "Offer to Purchase"
A preliminary agreement, secured by the payment
of earnest money, between a buyer and seller as an offer to purchase real
estate. A binder secures the right to purchase real estate upon agreed terms for
a limited period of time. If the buyer changes his mind or is unable to
purchase, the earnest money is forfeited unless the binder expressly provides
that it is to be refunded. Broker (See Real Estate Broker)
Blanket
Insurance Policy
A single policy that covers more than one piece
of property (or more than one person).
Bond
An interest-bearing certificate of debt with a
maturity date. An obligation of a government or business corporation. A real
estate bond is a written obligation usually secured by a mortgage or a deed of
trust.
Borrower
One who receives funds with the expressed or
implied intention of repaying the loan in full.
Bridge
Loan
A form of second trust that is collateralized
by the borrower's present home (which is usually for sale) in a manner that
allows the proceeds to be used for closing on a new house before the present
home is sold.
Broker
An individual in the business of assisting in
arranging funding or negotiating contracts for a client but who does not loan
the money himself. Brokers usually charge a fee or receive a commission for
their services.
Building
Code
Local regulations that control design,
construction, and materials used in construction. Building codes are based on
safety and health standards.
Building Line or Setback
Distances from the ends and/or sides of the lot
beyond which construction may not extend. The building line may be established
by a filed plat of subdivision, by restrictive covenants in deeds or leases, by
building codes, or by zoning ordinances.
Buy
Down
Money advanced by an individual (seller,
builder, etc.) to reduce monthly payments for a home mortgage either during the
entire term or for an initial period of years.
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Call
Option
A provision in the mortgage that gives the
mortgagee the right to call the mortgage due and payable at the end of a
specified period for whatever reason.
Capital
Expenditure
The cost of an improvement made to extend the
useful life of a property or to add to its value.
Capital
Improvement
Any structure or component erected as a
permanent improvement to real property that adds to its value and useful life.
Cap
A provision of an ARM limiting how much the
interest rate or mortgage payments may increase.
Cash Out
A loan transaction in which the borrower
receives funds at the time of closing.
Cash
Out Refinance
A refinance transaction in which the amount of
money received from the new loan exceeds the total of the money needed to repay
the existing first mortgage, closing costs, points, and the amount required to
satisfy any outstanding subordinate mortgage liens.
Certificate of
Deposit
A
document written by a bank or other financial institution that is evidence of a
deposit, with the issuer’s promise to return the deposit plus earnings at a
specified interest rate within a specified time period. Certificate of
Eligibility A document issued by the federal government certifying a veteran’s
eligibility for a Department of Veterans Affairs (VA) mortgage. Certificate of
Reasonable Value (CRV) A document issued by the Department of Veterans Affairs
(VA) that establishes the maximum value and loan amount for a VA mortgage.
Certificate of Title
A certificate issued by a title company or a
written opinion rendered by an attorney that the seller has good marketable and
insurable title to the property, which he is offering for sale. A certificate of
title offers no protection against any hidden defects in the title, which an
examination of the records could not reveal. The issuer of a certificate of
title is liable only for damages due to negligence. The protection offered a
homeowner under a certificate of title is not as great as that offered in a
title insurance policy.
Chain of
Title
The history of all of the documents that
transfer title to a parcel of real property, starting with the earliest existing
document and ending with the most recent.
Change
Frequency
The frequency (in months) of payment and/or
interest rate changes in an adjustable-rate mortgage (ARM).
Chattel
Another name for personal property.
Claim
An amount requested of an insurer, by a
policyholder or a claimant, for an insured loss.
Clear
Title
A title that is free of liens or legal
questions as to ownership of the property
Closing
The occasion where a sale is finalized; the
buyer signs the mortgage, and closing costs are paid. Also called
"settlement."
Closing Costs
Expenses (over and above the price of the
property) incurred by buyers and sellers in transferring ownership of a
property. Also called "settlement costs."
Closing
Cost Item
A fee or amount that a homebuyer must pay at
closing for a single service, tax, or product.
Closing Day
The day on which the formalities of a real
estate sale are concluded. The certificate of title, abstract, and deed are
generally prepared for the closing by an attorney and this cost charged to the
buyer. The buyer signs the mortgage, and closing costs are paid. The final
closing merely confirms the original agreement reached in the agreement of sale.
Cloud
On Title
An outstanding claim or encumbrance, which
adversely affects the marketability of title.
Co
Borrower
An additional borrower on a loan. A
co-borrower's obligation on a loan are the same as all other borrowers.
Coinsurance
A sharing of insurance risk between the insurer
and the insured. Coinsurance depends on the relationship between the amount of
the policy and a specified percentage of the actual value of the property
insured at the time of the loss.
Coinsurance
Clause
A provision in a hazard insurance policy that
states the amount of coverage that must be maintained -- as a percentage of the
total value of the property -- for the insured to collect the full amount of a
loss.
Collateral
An asset (such as a car or a home) that
guarantees the repayment of a loan. The borrower risks losing the asset if the
loan is not repaid according to the terms of the loan contract.
Collection
The efforts used to bring a delinquent mortgage
current and to file the necessary notices to proceed with foreclosure when
necessary.
Co
maker
A person who signs a promissory note along with
the borrower. A co-maker's signature guarantees that the loan will be repaid,
because the borrower and the co-maker are equally responsible for the repayment.
Commission
Money paid to a real estate agent or broker by
the seller as compensation for finding a buyer and completing the sale.
Commitment Letter
A formal offer by a lender stating the terms
under which it agrees to loan money to a homebuyer.
Common
Area Assessments
Levies against individual unit owners in a
condominium or planned unit development (PUD) project for additional capital to
defray homeowners' association costs and expenses and to repair, replace,
maintain, improve, or operate the common areas of the project.
Common
Areas
Those portions of a building, land, and
amenities owned (or managed) by a planned unit development (PUD) or condominium
project's homeowners' association (or a cooperative project's cooperative
corporation) that are used by all of the unit owners, who share in the common
expenses of their operation and maintenance. Common areas include swimming
pools, tennis courts, and other recreational facilities, as well as common
corridors of buildings, parking areas, means of ingress and egress, etc.
Common
Law
An unwritten body of law based on general
custom in England and used to an extent in the United States.
Community
Property
In some western and southwestern states, a form
of ownership under which property acquired during a marriage is presumed to be
owned jointly unless acquired as separate property of either spouse.
Comparables
A abbreviation for comparable properties used
for comparative purposes in the appraisal process; facilities of reasonably the
same size and location with similar amenities; properties which have been
recently sold, which have characteristics similar to property under
consideration, thereby indicating the approximate fair market value of the
subject property.
Compound
Interest
Interest paid on the original principal balance
and on the accrued and unpaid interest.
Condemnation
The taking of private property for public use
by a government unit, against the will of the owner, but with payment of just
compensation under the government's power of eminent domain. Condemnation may
also be a determination by a governmental agency that a particular building is
unsafe or unfit for use.
Condominium
Individual ownership of a dwelling unit and an
individual interest in the common areas and facilities, which serve the
multi-unit project.
Condominium
Conversion
Changing the ownership of an existing building
(usually a rental project) to the condominium form of ownership.
Condominium
Hotel
A condominium project that has rental or
registration desks, short-term occupancy, food and telephone services, and daily
cleaning services and that is operated as a commercial hotel even though the
units are individually owned.
Construction Loan
A short-term loan for funding the cost of
construction. The lender advances funds to the builder as the work progresses.
Consumer
Reporting Agency (or bureau)
An organization that prepares reports that are
used by lenders to determine a potential borrower's credit history. The agency
obtains data for these reports from a credit repository as well as from other
sources.
Contingency
A condition that must be met before a contract
is legally binding.
Contract
An oral or written agreement to do or not to do
a certain thing.
Contractor
In the construction industry, a contractor is
one who contracts to erect buildings or portions of them. There are also
contractors for each phase of construction: heating, electrical, plumbing, air
conditioning, road building, bridge and dam erection, and others.
Conventional Mortgage
Any mortgage that is not insured or guaranteed
by the federal government.
Convertibility
Clause
A provision in some adjustable-rate mortgages (ARMs)
that allows the borrower to change the ARM to a fixed-rate mortgage at specified
time.
Convertible Arm
An adjustable-rate mortgage that can be
converted to a fixed-rate mortgage under specified conditions.
Coverage
The amount of protection, usually expressed in
a percentage of the total claim amount, an insured receives under a certificate.
Cooperative
Co-op
A type of multiple ownership in which the
residents of a multiunit housing complex own shares in the cooperative
corporation that owns the property, giving each resident the right to occupy a
specific apartment or unit.
Cooperative Corporation
A business trust entity that holds title to a
cooperative project and grants occupancy rights to particular apartments or
units to shareholders through proprietary leases or similar arrangements.
Cooperative Housing
An apartment building or a group of dwellings
owned by a corporation, the stockholders of which are the residents of the
dwellings. It is operated for their benefit by their elected board of directors.
In a cooperative, the corporation or association owns title to the real estate.
A resident purchases stock in the corporation, which entitles him to occupy a
unit in the building or property owned by the cooperative. While the resident
does not own his unit, he has an absolute right to occupy his unit for as long
as he owns the stock.
Cooperative
Mortgages
Mortgages related to a cooperative project.
Cooperative
Project
A residential or mixed-use building wherein a
corporation or trust holds title to the property and sells shares of stock
representing the value of a single apartment unit to individuals who, in turn,
receive a proprietary lease as evidence of title.
Corporate
Relocation
Arrangements under which an employer moves an
employee to another area as part of the employer's normal course of business or
under which it transfers a substantial part or all of its operations and
employees to another area because it is relocating its headquarters or expanding
its office capacity.
Cost of
Funds Index (COFI)
An index that is used to determine interest
rate changes for certain adjustable-rate mortgage (ARM) plans. It represents the
weighted-average cost of savings, borrowings, and advances of the 11th District
members of the Federal Home Loan Bank of San Francisco.
Covenant
A clause in a mortgage that obligates or
restricts the borrower and that, if violated, can result in foreclosure.
Commitment
A written letter of agreement detailing the
terms and conditions by which the lender will lend and the borrower will borrow
funds to finance a home.
Credit
History
A record of an individual's open and fully
repaid debts. A credit history helps a lender to determine whether a potential
borrower has a history of repaying debts in a timely manner.
Credit
Life Insurance
A type of insurance often bought by mortgagors
because it will pay off the mortgage debt if the mortgagor dies while the policy
is in force.
Creditor
A person to whom money is owed.
Credit Report
A report of an individual's credit history
prepared by a credit bureau and used by a lender in determining a loan
applicant's creditworthiness.
Credit
Repository
An organization that gathers, records, updates,
and stores financial and public records information about the payment records of
individuals who are being considered for credit.
Cure
A loan that is removed from a delinquency
status with no loss to the insurer.
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Deed
In Lieu
A deed given by a mortgagor to the mortgagee to
satisfy a debt and avoid foreclosure. Also called a "voluntary
conveyance."
Deed of Trust
Like a mortgage, a security instrument whereby
real property is given as security for a debt. However, in a deed of trust there
are three parties to the instrument: the borrower, the trustee, and the lender,
(or beneficiary). In such a transaction, the borrower transfers the legal title
for the property to the trustee who holds the property in trust as security for
the payment of the debt to the lender or beneficiary. If the borrower pays the
debt as agreed, the deed of trust becomes void. If, however, he defaults in the
payment of the debt, the trustee may sell the property at a public sale, under
the terms of the deed of trust. In most jurisdictions where the deed of trust is
in force, the borrower is subject to having his property sold without benefit of
legal proceedings. A few States have begun in recent years to treat the deed of
trust like a mortgage.
Default
Failure to make mortgage payments on a timely
basis or to comply with other conditions of a mortgage.
Deficiency Judgment
A court order to pay the balance owed on a loan
if the proceeds from the sale of the security are insufficient to pay off the
loan. Deficiency judgments are not allowed in all states.
Delinquency
A loan in which a payment is overdue but not
yet in default.
Deposit
A sum of money given to bind the sale of real
estate, or a sum of money given to ensure payment or an advance of funds in the
processing of a loan.
Depreciation
A decline in the value of property; the
opposite of "appreciation."
Discount Points
See Points.
Documentary Stamps
A State tax, in the forms of stamps, required
on deeds and mortgages when real estate title passes from one owner to another.
The amount of stamps required varies with each State.
Dower
The rights of a widow in the property of her
husband at his death.
Down Payment
The part of the purchase price, which the buyer
pays in cash and does not finance with a mortgage
Due-on-sale provision
A provision in a mortgage that allows the
lender to demand repayment in full if the borrower sells the property that
serves as security for the mortgage.
Due
On Transfer Provision
This terminology is usually used for second
mortgages.
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Earnest Money
The deposit money given to the seller or his
agent by the potential buyer upon the signing of the agreement of sale to show
that he is serious about buying the house. If the sale goes through, the earnest
money is applied against the down payment. If the sale does not go through, the
earnest money will be forfeited or lost unless the binder or offer to purchase
expressly provides that it is refundable.
Easement Rights
A right-of-way granted to a person or company
authorizing access to or over the owner's land. An electric company obtaining a
right-of-way across private property is a common example.
Effective
Age
An
appraiser’s estimate of the physical condition of a building. The actual age
of a building may be shorter or longer than its effective age. Effective gross
income
Normal annual income including overtime that is
regular or guaranteed. The income may be from more than one source. Salary is
generally the principal source, but other income may qualify if it is
significant and stable.
Eminent
Domain
The right of a government to take private
property for public use upon payment of its fair market value. Eminent domain is
the basis for condemnation proceedings.
Employer
Assisted Housing
A special Fannie Mae housing initiative that
offers several different ways for employers to work with local lenders to
develop plans to assist their employees in purchasing homes.
Encroachment
An obstruction, building, or part of a building
that intrudes beyond a legal boundary onto neighboring private or public land,
or a building extending beyond the building line.
Encumbrance
A legal right or interest in land that affects
a good or clear title, and diminishes the land's value. It can take numerous
forms, such as zoning ordinances, easement rights, claims, mortgages, liens,
charges, a pending legal action, unpaid taxes, or restrictive covenants. An
encumbrance does not legally prevent transfer of the property to another. A
title search is all that is usually done to reveal the existence of such
encumbrances, and it is up to the buyer to determine whether he wants to
purchase with the encumbrance, or what can be done to remove it.
Endorser
A person who signs ownership interest over to
another party. Contrast with co-maker.
Equal Credit Opportunity Act (ECOA)
A federal law that requires lenders and other
creditors to make credit equally available without discrimination based on race,
color, religion, national origin, age, sex, marital status, or receipt of income
from public assistance programs.
Equity
The difference between the market value of a
property and the homeowner's outstanding mortgage balance.
Equity Loan
A loan based on the borrower's equity in his or
her home. Prior to closing; also, an account held by the lender into which a
homeowner pays money for taxes and insurance.
Escrow
Account
The
account in which a mortgage servicer holds the borrower’s escrow payments
prior to paying property expenses.Escrow analysis. The periodic examination of escrow accounts to
determine if current monthly deposits will provide sufficient funds to pay
taxes, insurance, and other bills when due.
Escrow
Collections
Funds
collected by the servicer and set aside in an escrow account to pay the borrower’s
property taxes, mortgage insurance, and hazard insurance. Escrow disbursements. The
use of escrow funds to pay real estate taxes, hazard insurance, mortgage
insurance, and other property expenses as they become due.
Escrow
Payment
The
portion of a mortgagor’s monthly payment that is held by the servicer to pay
for taxes, hazard insurance, mortgage insurance, lease payments, and other items
as they become due. Estate.
The ownership interest of an individual in real property. The sum
total of all the real property and personal property owned by an individual at
time of death.
Eviction
The lawful expulsion of an occupant from real
property.
Examination of
Title
The report on the title of a property from the
public records or an abstract of the title.
Exclusive
Listing
A
written contract that gives a licensed real estate agent the exclusive right to
sell a property for a specified time, but reserving the owner’s right to sell
the property alone without the payment of a commission.
Executor
A person named in a will to administer an
estate
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Fair Credit Reporting Act
FCRA
A consumer protection law that regulates the
disclosure of consumer credit reports by consumer/credit reporting agencies and
establishes procedures for correcting mistakes on one's credit record.
Fair
Market Value
The
highest price that a buyer, willing but not compelled to buy would pay, and the
lowest a seller, willing but not compelled to sell, would accept.
FDIC
(Federal Deposit Insurance Corporation).
Provides insurance of accounts for institutions whose deposits were formerly
covered by the Federal Savings & Loan Insurance Corporation. (FSLIC).
Fee
Simple
The greatest possible interest a person can
have in real estate.
Fee
Simple Estate
An unconditional, unlimited estate of
inheritance that represents the greatest estate and most extensive interest in
land that can be enjoyed. It is of perpetual duration. When the real estate is
in a condominium project, the unit owner is the exclusive owner only of the air
space within his or her portion of the building (the unit) and is an owner in
common with respect to the land and other common portions of the property.
FHA
(Federal Housing Administration). A division of
the Department of Housing and Urban Development. The FHA's main activity is the
insuring of residential mortgage loans made by private lenders. It sets
standards for construction and underwriting. FHA neither lends money, nor plans,
nor constructs housing.
FHA Loan
Government loans are loans that are guaranteed
or purchased by government organizations. Two of the most popular Government
Loans are the Federal Housing Administration (FHA) and the Department of
Veterans Affairs (VA).
Federal
Housing Finance Board FHFB
(Federal Housing Finance Board). It oversees
the credit functions of the twelve regional Federal Home Loan Banks.
Federal
Home Loan Bank Board FHLBB
(Federal Home Loan Bank Board). A regulatory
and supervisory agency for federally charted savings institutions, which
oversees the operations of the FSLIC and FHLMC. This agency was abolished by the
Financial Institutions Reform, Recovery and Enforcement Act of 1989. (See FIRREA.)
Federal
Home Loan Mortgage Corporation HLMC
(Federal Home Loan Mortgage Corporation,
Freddie Mac). A private corporation authorized by Congress, which became an
independent, stockholder-owned government corporation with the passage of FIRREA.
FHLMC promotes the flow of funds into the housing markets by purchasing
conventional mortgages in the secondary market and selling securities backed by
those mortgages in the capital market.
Finance Charge
The total dollar amount your loan will cost
you. It includes all interest payments for the life of the loan, any interest
paid at closing, your origination fee and any other charges paid to the lender
and/or broker. Appraisal, credit report and title search fees are not included
in the finance charge calculation.
Finder's
Fee
A fee or commission paid to a mortgage broker
for finding a mortgage loan for a prospective borrower.
FIRE
(Financial Institutions Reform, Recovery and
Enforcement Act of 1989). An act signed into law in August 1989, by President
Bush that restructured the thrift regulatory an insurance system.
Firm
Commitment
A
lender’s agreement to make a loan to a specific borrower on a specific
property.
First Mortgage
The mortgage that has first claim in the event
of default.
Fixed
Installment
The monthly payment due on a mortgage loan.
Fixed
Rate Mortgage
(FRM) A mortgage in which the interest rate
does not change during the entire term of the loan.
Federal
National Mortgage Association FNMA
(Federal National Mortgage Association, Fannie
Mae). A government-sponsored corporation, owned solely by private investors,
created to provide support to the secondary market for FHA and VA mortgages and
conventional mortgages.
Fixture
Personal property that becomes real property
when attached in a permanent manner to real estate.
Flood
Insurance
Insurance that compensates for physical
property damage resulting from flooding. It is required for properties located
in federally designated flood areas.
Forfeiture
The loss of money, property, rights, or
privileges due to a breach of legal obligation.
Foreclosure
The process by which a mortgage property may be
sold when a mortgage is in default.
Fully
Amortized ARM
An adjustable-rate mortgage (ARM) with a
monthly payment that is sufficient to amortize the remaining balance, at the
interest accrual rate, over the amortization term.
Full Recasting
Setting the P&I payments to the level that
will fully amortize the loan's outstanding balance over the remaining term using
the fully indexed accrual rate at the recasting point.
Fully Indexed Accrual Rate
The interest (accrual) rate resulting from the
index at closing (or at another point in the loan) plus the lender's full
spread, rounded as prescribed in the loan documents (often to the nearest 1/8th
of 1%).
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General Warranty Deed
A deed which conveys not only all the grantor's
interests in and title to the property to the grantee, but also warrants that if
the title is defective or has a "cloud" on it (such as mortgage
claims, tax liens, title claims, judgments, or mechanic's liens against it) the
grantee may hold the grantor liable.
Good Faith Estimate
An estimate of charges, which a borrower is
likely to incur in connection with a loan closing.
Graduated Payment Mortgage
(GPM) A mortgage where the payments are
scheduled to increase, usually annually, for a set number of years, and then
level off. GPM can be used with either a fixed or adjustable interest rate, and
usually has a 30-year term.
Grantee
That party in the deed who is the buyer or
recipient.
Grantor
That party in the deed who is the seller or
giver.
Gross Monthly Income
The total amount the borrower earns per month,
not counting any taxes or expenses. Often used in calculations to determine
whether a borrower qualifies for a particular loan.
Growing Equity Mortgage
GEM
(GEM) A fixed rate, graduated payment mortgage
with small initial payments that increase each year so that the loan pays off in
a shortened term, usually 15 years.
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Hazard Insurance
Insurance to protect the homeowner and the
lender against physical damage to a property from fire, wind, vandalism, or
other hazards.
Homeowner's Insurance
An insurance policy that combines liability
coverage and hazard insurance.
Homeowner's Warranty
A type of insurance that covers repairs to
specified parts of a house for a specific period of time.
Housing Ratio
The ratio of the monthly housing payment to
total gross monthly income. Also called Payment-to-Income Ratio or Front-End
Ratio.
HUD
Housing and Urban Development
(Department of Housing and Urban Development).
A cabinet department responsible for the implementation and administration of
government housing and urban development programs.
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Income
Property
Real estate developed or improved to produce
income.
Index
aka Rate Index
(Also called "Rate Index"). A
regularly published rate, independent of the lending institution, that measures
the prevailing cost of funds, and is used periodically with the margin to set
AML accrual rates.
Initial Borrower Interest Rate
The rate on which the borrower's first payment
is calculated.
Initial Borrower Payment Rate
The annual interest rate used to calculate the
borrower's initial cash payment.
Inflation
An increase in the amount of money or credit
available in relation to the amount of goods or services available, which causes
an increase in the general price level of goods and services. Over time,
inflation reduces the purchasing power of a dollar, making it worth less.
Initial
Interest Rate
The original interest rate of the mortgage at
the time of closing.
Installment
The regular periodic payment that a borrower
agrees to make to a lender.
Installment
Loan
Borrowed money that is repaid in equal
payments, known as installments. A furniture loan is often paid for as an
installment loan.
Insurable
Title
A property title that a title insurance company
agrees to insure against defects and disputes.
Insurance
A contract that provides compensation for
specific losses in exchange for a periodic payment. An individual contract is
known as an insurance policy, and the periodic payment is known as an insurance
premium.
Insurance
Binder
A document that states that insurance is
temporarily in effect. Because the coverage will expire by a specified date, a
permanent policy must be obtained before the expiration date.
Insured
Mortgage
A mortgage that is protected by the Federal
Housing Administration (FHA) or by private mortgage insurance (MI). If the
borrower defaults on the loan, the insurer must pay the lender the lesser of the
loss incurred or the insured amount
Interest
The fee charged for borrowing money.
Interest
Accrual Rate
The percentage rate at which interest accrues
on the mortgage. In most cases, it is also the rate used to calculate the
monthly payments, although it is not used for an adjustable-rate mortgage (ARM)
with payment change limitations.
Interest Rate
The percentage of an amount of money, which is
paid for its use for a specified time.
Interest Rate Cap
A provision of an ARM limiting how much
interest rates may increase per adjustment period.
Interest
Rate Ceiling
For an adjustable-rate mortgage (ARM), the
maximum interest rate, as specified in the mortgage note.
Interest
Rate Floor
For an adjustable-rate mortgage (ARM), the
minimum interest rate, as specified in the mortgage note.
Investment
Property
A property that is not occupied by the owner.
IRA
Individual Retirement Account
A retirement account that allows individuals to
make tax-deferred contributions to a personal retirement fund. Individuals can
place IRA funds in bank accounts or in other forms of investment such as stocks,
bonds, or mutual funds.
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Joint
Tenancy
A form of co-ownership that gives each tenant
equal interest and equal rights in the property, including the right of
survivorship.
Judgment
A decision made by a court of law. In judgments
that require the repayment of a debt, the court may place a lien against the
debtor's real property as collateral for the judgment's creditor.
Judgment
Lien
A lien on the property of a debtor resulting
from the decree of a court.
Judicial
Foreclosure
A type of foreclosure proceeding used in some
states that is handled as a civil lawsuit and conducted entirely under the
auspices of a court.
Jumbo Loans
Jumbo, or non-conforming, is a term used to
describe a loan that does not conform to Fannie Mae or Freddie Mac guidelines.
The typical Jumbo loan exceeds the maximum loan amounts described above.
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Late
Charge
The penalty a borrower must pay when a payment
is made a stated number of days (usually 15) after the due date.
Lease
A written agreement between the property owner
and a tenant that stipulates the conditions under which the tenant may possess
the real estate for a specified period of time and rent.
Leasehold
Estate
A way of holding title to a property wherein
the mortgagor does not actually own the property but rather has a recorded
long-term lease on it.
Legal
Description
A property description, recognized by law that
is sufficient to locate and identify the property without oral testimony.
Lender
An institution that makes loans to borrowers on
real estate.
Liabilities
A person's financial obligations. Liabilities
include long-term and short-term debt, as well as any other amounts that are
owed to others.
Liability
Insurance
Insurance coverage that offers protection
against claims alleging that a property owner's negligence or inappropriate
action resulted in bodily injury or property damage to another party.
Lien
A legal claim against a property that must be
paid when the property is sold.
Lifetime Cap
A provision of an ARM that limits the total
increase in interest rates over the life of the loan.
Lifetime
Payment Cap
For an adjustable-rate mortgage (ARM), a limit
on the amount that payments can increase or decrease over the life of the
mortgage.
Line of
Credit
An agreement by a commercial bank or other
financial institution to extend credit up to a certain amount for a certain time
to a specified borrower.
Liquid
Asset
A cash asset or an asset that is easily
converted into cash.
Loan
A sum of borrowed money (principal) that is
generally repaid with interest.
Loan Commitment
Formal offer by a lender stating the terms
under which it agrees to loan money to a homebuyer.
Loan
Origination
The process by which a mortgage lender brings
into existence a mortgage secured by real property.
Loan Servicing
The collection of mortgage payments from
borrowers and related responsibilities of a loan servicer.
Loan
To Value
(LTV). The loan-to-value ratio (LTV) is the
original loan amount divided by the lower of the sales price or the appraised
value.
Lock
The period, expressed in days, during which a
lender will guarantee a rate.
Lock
in Period
The time period during which the lender has
guaranteed an interest rate to a borrower.
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Marketable Title
A title that is free and clear of objectionable
liens, clouds, or other title defects. A title which enables an owner to sell
his property freely to others and which others will accept without objection.
Master
Association
A homeowners' association in a large
condominium or planned unit development (PUD) project that is made up of
representatives from associations covering specific areas within the project. In
effect, it is a "second-level" association that handles matters
affecting the entire development, while the "first-level" associations
handle matters affecting their particular portions of the project.
Maturity
The date on which the principal balance of a
loan, bond, or other financial instrument becomes due and payable.
Merged
Credit Report
A credit report that contains information from
three credit repositories. When the report is created, the information is
compared for duplicate entries. Any duplicates are combined to provide a summary
of a your credit.
Modification
Margin
(Also called "Spread"). The amount
the lender adds to the index to determine the Fully Indexed Accrual Rate.
Money
Market Account
A savings account that provides bank depositors
with many of the advantages of a money market fund. Certain regulatory
restrictions apply to the withdrawal of funds from a money market account.
Money
Market Fund
A mutual fund that allows individuals to
participate in managed investments in short-term debt securities, such as
certificates of deposit and Treasury bills.
Monthly Housing Expense
Total principal, interest, taxes, and insurance
paid by the borrower on a monthly basis. Used with gross income to determine
affordability.
Monthly
Payment Mortgage
A mortgage that requires payments to reduce the
debt once a month.
Mortgage
A legal document that pledges a property to the
lender as security for a payment of a debt.
Mortgage Banker
A company that originates mortgages exclusively
for resale in the secondary market.
Mortgage Broker
A company that for a fee matches borrowers with
lenders.
Mortgage Insurance Premium
(MIP). The fee paid to FHA or a private insurer
for mortgage insurance.
Mortgagee
The lender in a mortgage agreement.
Mortgage Commitment
A written notice from the bank or other lending
institution saying it will advance mortgage funds in a specified amount to
enable a buyer to purchase a house.
Mortgage Insurance Premium
The payment made by a borrower to the lender
for transmittal to HUD to help defray the cost of the FHA mortgage insurance
program and to provide a reserve fund to protect lenders against loss in insured
mortgage transactions. In FHA insured mortgages this represents an annual rate
of one-half of one percent paid by the mortgagor on a monthly basis.
Mortgage
Life Insurance
A type of term life insurance often bought by
mortgagors. The amount of coverage decreases as the principal balance declines.
In the event that the borrower dies while the policy is in force, the debt is
automatically satisfied by insurance proceeds.
Mortgage Note
A written agreement to repay a loan. The
agreement is secured by a mortgage, serves as proof of indebtedness, and states
the manner in which it shall be paid. The note states the actual amount of the
debt that the mortgage secures and renders the mortgagor personally responsible
for repayment.
Mortgagor
The borrower in a mortgage agreement.
Multidwelling
Units
Properties that provide separate housing units
for more than one family, although they secure only a single mortgage.
Multifamily
Mortgage
A residential mortgage on a dwelling that is
designed to house more than four families, such as a high-rise apartment
complex.
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Negative Amortization
(Also called "Deferred Interest"). If
the payments are too small to cover the interest due on a loan, the remaining
interest owed is added to the outstanding loan balance, causing negative
amortization.
Net
Cash Flow
The income that remains for an investment
property after the monthly operating income is reduced by the monthly housing
expense, which includes principal, interest, taxes, and insurance (PITI) for the
mortgage, homeowners' association dues, leasehold payments, and subordinate
financing payments.
Net Effective Income
Gross income less federal income tax.
Negative
Amortization
A gradual increase in mortgage debt that occurs
when the monthly payment is not large enough to cover the entire principal and
interest due. The amount of the shortfall is added to the remaining balance to
create "negative" amortization
Net Worth
The value of all assets, including cash, less
total liabilities.
No
Cash Out Refinance
A refinance transaction in which the new
mortgage amount is limited to the sum of the remaining balance of the existing
first mortgage, closing costs (including prepaid items), points, the amount
required to satisfy any mortgage liens that are more than one year old (if the
borrower chooses to satisfy them), and other funds for the borrower's use (as
long as the amount does not exceed 1 percent of the principal amount of the new
mortgage).
Non
Liquid Asset
An asset that cannot easily be converted into
cash.
Note
A legal document that obligates a borrower to
repay a mortgage loan at a stated interest rate during a specified period of
time.
Note
Rate
The interest rate stated on a mortgage note.
Notice of Default
A formal written notice to a borrower that a
default has occurred and that legal action may be taken.
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Original
Principal Balance
The total amount of principal owed on a
mortgage before any payments are made.
Origination Fee
A fee paid to a lender for processing a loan
Application.
OTC
(The Office of Thrift Supervision). Charters
federal thrifts, serves as the primary federal examiner and regulator of federal
and state-chartered savings associations, and administers laws governing savings
and loan holding companies.
Owner
Financing
A property purchase transaction in which the
property seller provides all or part of the financing.
Owner Occupied
"Owner Occupied" means the property
is the owner's primary residence.
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Payment Adjustment Period
The length of time (typically a year) between
changes to the AML borrower's P&I payment.
Payment Buy
Down
Payment buy downs occur when a third party,
typically a builder, pays part of the initial P&I payments for a year or
two, so that the borrower has smaller payments and can qualify for the loan.
Payment Cap
A limit on the amount the payment can be
changed at the end of each Payment Adjustment Period.
Payment Discount
In a payment discount, the lender reduces the
first year's interest rate to make the mortgagor more attractive to borrowers.
Periodic
Payment Cap
A limit on the amount that payments can
increase or decrease during any one-adjustment period.
Periodic
Rate Cap
A limit on the amount that the interest rate
can increase or decrease during any one adjustment period, regardless of how
high or low the index might be.
Personal
Property
Any property that is not real property.
PITI
Principal, Interest, Taxes and Insurance are
components of a mortgage payment.
Plat
A map or chart of a lot, subdivision or
community drawn by a surveyor showing boundary lines, buildings, improvements on
the land, and easements.
Points
A one-time charge by the lender to increase the
yield of the loan; a point is 1 percent of the amount of the mortgage.
Power
Of Attorney
A legal document that authorizes another person
to act on one’s behalf. A power of attorney can grant complete authority or
can be limited to certain acts and/or certain periods of time.
Prepayment
Payment of mortgage loan, or part of it, before
due date.
Prequalification
The process of determining how much money a
prospective homebuyer will be eligible to borrow before application.
Prime
Rate
The interest rates that banks charge to their
preferred customers.
Principal
The amount borrowed or remaining unpaid, also,
that part of the monthly payment that reduces the outstanding balance of a
mortgage.
Private Mortgage Insurance
Insurance provided by nongovernmental insurers
that protect lenders against loss if a borrower defaults.
Promissory
Note
A written promise to repay a specified amount
over a specified period of time.
Public
Auction
A meeting in an announced public location to
sell property to repay a mortgage that is in default.
Planned Unit Development
PUD
A project or subdivision that includes common
property that is owned and maintained by a homeowners' association for the
benefit and use of the individual PUD unit owners.
Purchase Agreement
See Agreement of Sale.
Purchase
Money Transaction
The acquisition of property through the payment
of money or its equivalent.
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Qualifying Ratios
Guidelines applied by lenders to determine how
large a loan to grant a homebuyer.
Quitclaim Deed
A deed, which transfers whatever interest, the
maker of the deed may have in the particular parcel of land. A quitclaim deed is
often given to clear the title when the grantor's interest in a property is
questionable. By accepting such a deed the buyer assumes all the risks. Such a
deed makes no warranties as to the title, but simply transfers to the buyer
whatever interest the grantor has. (See Deed.)
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Radon
A radioactive gas found in some homes that in
sufficient concentrations could cause health problems.
Rate Caps
(Also called "Interest Rate Caps"). A
limit on the amount of which the interest rate charged to the borrower can be
changed.
Rate
Lock
A commitment issued by a lender to a borrower
or other mortgage originator guaranteeing a specified interest rate for a
specified period of time.
Real Estate Broker
A middleman or agent who buys and sells real
estate for a company, firm, or individual on a commission basis. The broker does
not have title to the property, but generally represents the owner.
Real Estate Owned
REO
(REO). A term frequently used by lending
institution as applied to ownership of real property acquired for investment or
as a result of foreclosure.
RESPA
(Real Estate Settlement Procedures Act). A
Federal law that requires lenders to provide home mortgage borrowers with
information about known or estimated settlement costs.
Real
Property
Land and appurtenances, including anything of a
permanent nature such as structures, trees, minerals, and the interest,
benefits, and inherent rights thereof.
REALTOR
A real estate broker or an associate who holds
active membership in a local real estate board that is affiliated with the
National Association of Realtors.
Recission
The cancellation or annulment of a transaction
or contract by the operation of a law or by mutual consent.
Recorder
The public official who keeps records of
transactions that affects real property in the area.
Recording
The noting in the registrar’s office of the
details of a properly executed legal document, such as a deed, a mortgage note,
a satisfaction of mortgage, or an extension of mortgage, thereby making it a
part of the public record. Refinancing
The process of the same mortgagor paying off
one loan with the proceeds from another loan.
Rehabilitation
Mortgage
A mortgage created to cover the costs of
repairing, improving, and sometimes acquiring an existing property.
Remaining
Balance
The amount of principal that has not yet been
repaid.
Remaining
Term
The original amortization term minus the number
of payments that have been applied.
Repayment
Plan
An arrangement made to repay delinquent
installments or advances. Lenders' formal repayment plans are called
"relief provisions."
Replacement
Reserve Fund
A fund set aside for replacement of common
property in a condominium, PUD, or cooperative project -- particularly that
which has a short life expectancy, such as carpeting, furniture, etc.
Restrictive Covenants
Private restrictions limiting the use of real
property. Restrictive covenants are created by deed and may "run with the
land," binding all subsequent purchasers of the land, or may be
"personal" and binding only between the original seller and buyer. The
determination whether a covenant runs with the land or is personal is governed
by the language of the covenant, the intent of the parties, and the law in the
State where the land is situated. Restrictive covenants that run with the land
are encumbrances and may affect the value and marketability of title.
Restrictive covenants may limit the density of buildings per acre, regulate
size, style or price range of buildings to be erected, or prevent particular
businesses from operating or minority groups from owning or occupying homes in a
given area. (This latter discriminatory covenant is unconstitutional and has
been declared unenforceable by the U.S. Supreme Court.)
Revolving
Liability
A credit arrangement, such as a credit card,
that allows a customer to borrow against a pre-approved line of credit when
purchasing goods and services. The borrower is billed for the amount that is
actually borrowed plus any interest due.
Right of
First Refusal
A provision in an agreement that requires the
owner of a property to give another party the first opportunity to purchase or
lease the property before he or she offers it for sale or lease to others.
Right of
Ingress or Egress
The right to enter or leave designated
premises.
Right of
Survivorship
In joint tenancy, the right of survivors to
acquire the interest of a deceased joint tenant.
RTC
Resolution Trust Corporation
(Resolution Trust Corporation). Formed to
resolve thrift failures over the next three years and dispose of their assets
and liabilities.
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Sales Agreement
See Agreement of sale.
Second Mortgage
A mortgage that has rights that are subordinate
to the rights of the first mortgage holders.
Secondary Mortgage Market
The buying and selling of existing mortgages.
Seller
Provided Funds
(Also called "Seller Contributions").
Seller-provided funds include all transaction cost paid by the seller except the
real estate agent's (or brokers) fee.
Servicer
The party who has entered into an agreement
with the insured to service a loan.
Settlement Costs
See Closing Costs.
Single Premium
A premium, which provides coverage for more
than a year. empty)
Special Assessments
A special tax imposed on property, individual
lots or all property in the immediate area, for road construction, sidewalks,
sewers, streetlights, etc.
Special Lien
A lien that binds a specified piece of
property, unlike a general lien, which is levied against all one's assets. It
creates a right to retain something of value belonging to another person as
compensation for labor, material, or money expended in that person's behalf. In
some localities it is called "particular" lien or "specific"
lien. (See Lien.)
Special Warranty Deed
A deed in which the grantor conveys title to
the grantee and agrees to protect the grantee against title defects or claims
asserted by the grantor and those persons whose right to assert a claim against
the title arose during the period the grantor held title to the property. In a
special warranty deed the grantor guarantees to the grantee that he has done
nothing during the time he held title to the property which has, or which might
in the future, impair the grantee's title.
Survey
A map or plat made by a licensed surveyor
showing the results of measuring the land with its elevations, improvements,
boundaries, and its relationship to surrounding tracts of land. A survey is
often required by the lender to assure him that a building is actually sited on
the land according to its legal description.
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Tax
As applied to real estate, an enforced charge
imposed on persons, property or income, to be used to support the State. The
governing body in turn utilizes the funds in the best interest of the general
public.
Tax Lien
A claim against real estate for the amount of
its unpaid taxes.
Teaser Rate
Similar to a Payment Discount, but implies
either an unusually large initial rate discount or an attempt by the lender to
lure an otherwise unqualified borrower into the mortgage.
Tenancy by
The Entirety
A type of joint tenancy of property that
provides right of survivorship and is available only to a husband and wife.
Contrast with tenancy in common.
Tenancy in
Common
A type of joint tenancy in a property without
right of survivorship. Contrast with tenancy by the entirety and with joint
tenancy.
Tenant
Stockholder
The obligee for a cooperative share loan, who
is both a stockholder in a cooperative corporation and a tenant of the unit
under a proprietary lease or occupancy agreement.
Third
Party Origination
A process by which a lender uses another party
to completely or partially originate, process, underwrite, close, fund, or
package the mortgages it plans to deliver to the secondary mortgage market.
Title
As generally used, the rights of ownership and
possession of particular property. In real estate usage, title may refer to the
instruments or documents by which a right of ownership is established (title
documents), or it may refer to the ownership interest one has in the real
estate.
Title Company
A company that specializes in examining and
insuring titles to real estate.
Title Insurance
Protects lenders or homeowners against loss of
their interest in property due to legal defects in title. Title insurance may be
issued to a "mortgagee's title policy." Insurance benefits will be
paid only to the "named insured" in the title policy, so it is
important that an owner purchase an "owner's title policy", if he
desires the protection of title insurance.
Title Search or Examination
A check of the title records, generally at the
local courthouse, to make sure the buyer is purchasing a house from the legal
owner and there are no liens, overdue special assessments, or other claims or
outstanding restrictive covenants filed in the record, which would adversely
affect the marketability or value of title.
Total Debt Ratio
Monthly debt and housing payments divided by
gross monthly income. Also known as Back-End Ratio.
Total
Expense Ratio
Total obligations as a percentage of gross
monthly income. The total expense ratio includes monthly housing expenses plus
other monthly debts.
Trade
Equity
Equity that results from a property purchaser
giving his or her existing property (or an asset other than real estate) as
trade as all or part of the down payment for the property that is being
purchased.
Transfer of
Ownership
Any means by which the ownership of a property
changes hands. Lenders consider all of the following situations to be a transfer
of ownership: the purchase of a property "subject to" the mortgage,
the assumption of the mortgage debt by the property purchaser, and any exchange
of possession of the property under a land sales contract or any other land
trust device. In cases in which an inter vivos revocable trust is the borrower,
lenders also consider any transfer of a beneficial interest in the trust to be a
transfer of ownership.
Transfer
Tax
State or local tax payable when title passes
from one owner to another.
Treasury
Index
An index that is used to determine interest
rate changes for certain adjustable-rate mortgage (ARM) plans.
Trustee
A party who is given legal responsibility to
hold property in the best interest of or "for the benefit of" another.
The trustee is one placed in a position of responsibility for another, a
responsibility enforceable in a court of law.
Truth
In Lending TIL
(TIL). A federal law that requires lenders to
fully disclose, in writing, the terms and conditions of a mortgage, including
the APR and other charges.
Two
to Four Family Property
A property that consists of a structure that
provides living space (dwelling units) for two to four families, although
ownership of the structure is evidenced by a single deed.
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Underwriting
The process of evaluating a loan application to
determine the risk involved for the lender. Underwriting involves an analysis of
the borrower's creditworthiness and the quality of the property itself.
Unsecured
Loan
A loan that is not backed by collateral.
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Government Loans FHA / VA
Government loans are loans that are guaranteed
or purchased by government organizations. Two of the most popular Government
Loans are the Federal Housing Administration (FHA) and the Department of
Veterans Affairs (VA).
Vested
Having the right to use a portion of a fund
such as an individual retirement fund.
Department of Veterans Affairs (VA)
An agency of the federal government that
guarantees residential mortgages made to eligible veterans of the military
services. The guarantee protects the lender against loss and thus encourages
lenders to make mortgages to veterans.
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Wraparound
Mortgage
A mortgage that includes the remaining balance
on an existing first mortgage plus an additional amount requested by the
mortgagor. Full payments on both mortgages are made to the wraparound mortgagee,
who then forwards the payments on the first mortgage to the first mortgagee.
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Zoning Ordinances
The acts of an authorized local government
establishing building codes, and setting forth
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