Glossary G-K
Please click on the first letter of the word or phrase you are looking for.
| G |
| GI LOAN: Nickname for a mortgage loan guaranteed by the VA. |
| GNMA: A mortgage-backed securities program in which individual mortgage lending firms issue securities and pass principal and interest payments directly to the holders, whether or not the mortgagor makes the monthly payment. GNMA mortgage-backed securities are backed by the "full faith and credit" of the U.S. government. |
| GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA): Created in 1968 by an amendment to Title III of the National Housing Act (12 USC 1716 et seq.), this federal government corporation is a constituent part of the Department of Housing and Urban Development. Among other governmental functions, it guarantees securities backed by the mortgages that are insured or guaranteed by other government agencies. Also called Ginnie Mae. |
| GRADUATED PAYMENT MORTGAGE (GPM): A type of flexible payment mortgage where the payments increase for a specified period of time and then level off. Usually results in negative amortization. |
| GRAVITOR: The person conveying an interest in real property. |
| GROUND RENT: Rent paid for land in accordance with the terms if it is a ground lease. |
| H |
| HAZARD INSURANCE: Insurance coverage which provides compensation to the insured in case of property loss or damage. |
| HOME EQUITY LOAN: Mortgage financing that consists of a revolving line of credit secured by the appraised market value of the home. Usable for any purpose. |
| HOMEOWNER'S POLICY: A multiple peril insurance policy available to owners of private dwellings which covers the dwelling and its contents, as well as personal liability. |
| HOMESTEAD ESTATE: In some states, a statutory exemption which prohibits the attachment or sale of owner-occupied properties to pay the claims of creditors. |
| HUD: The Department of Housing and Urban Development. A governmental entity responsible for the implementation and administration of housing and urban development programs. HUD was established by the Housing and Urban Development Act of 1965 to supersede the Housing and Home Finance Agency. |
| I |
| INCOME PROPERTY: Real estate developed or improved to produce income. |
| INGRESS AND EGRESS: The right to enter and exit land. |
| INSURED CLOSING LETTER: A document issued by a title insurance company which protects a mortgagee against embezzlement or failure to follow specific closing instructions. |
| INSURED LOAN: A loan insured by FmHA, FHA or a private mortgage insurance company. |
| INTEREST: Consideration in the form of money paid for the use of money, usually expressed by annual percentage. Also, a right, share or title in property. |
| INTEREST REDUCTION RATES: Programs that subsidize the market interest rate on mortgage loans, thus lowering the consumer's housing cost. |
| INTERNAL RATE OF RETURN (IRR): A method of determining investment yield over time, assuming a set of income, expense and property value conditions. |
| INVENTORY: In the secondary market, refers to loans closed but not yet sold to an investor. |
| INVESTOR: Any person of institution that invests in mortgages or mortgage-backed securities. |
| ISSUE DATE: The date a mortgage-backed security is issued to investors. |
| ISSUER: One who packages mortgages for sale as securities. |
| J |
| JOINT TENANCY: Form of co-ownership giving each tenant equal rights in the property, including the right of survivorship. |
| JOINTLY-OWNED PROPERTY: Property held in the name of more than one person. |
| JUDGMENT: Final determination by a court of the rights and claims of the parties to an action. |
| JUDGMENT LIEN: Lien upon the property of a debtor resulting from a decree of the court. |
| JUNIOR MORTGAGE: A mortgage that is subordinate to the claims of a prior lien or mortgage. |
| K |
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