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
M1, M2, M3
Three measurements of the United States money supply. M1, or the basic money supply, consists of cash in public hands, private checking accounts, credit union share accounts and demand deposits at thrifts. M2 includes all of M1 plus money market mutual fund shares, and savings deposits of less than $100,000 at all depository institutions. M3 includes M2 plus large time deposits at all depository institutions.
macroeconomics
The study of a national economy and its various segments including national income, national output, employment and economic growth. (See microeconomics)
maintenance and repairs expense
This is how much you will spend maintaining a property. Maintenance and repairs expense is the toughest expense category to estimate, so it is best to be conservative.
maintenance charges
Monthly or annual charges assessed in a condominium, planned united development, or cooperative development to cover operational costs.
maintenance request
In the context of property management, a maintenance request is a formal notice from a tenant to the property maintenance team or landlord, reporting a need for repairs or upkeep. This request can pertain to issues ranging from routine tasks like landscaping or cleaning communal areas to urgent repairs such as plumbing leaks, electrical faults, or heating system failures. The property manager must assess the request, determine the appropriate response, and schedule the maintenance work to ensure the property remains in good condition and habitable.
maker
The maker of a check is known as the drawer. (See payee)
makeready
The renovation of a previously occupied space to prepare it for new tenants may be termed “makeready.” This process involves cleaning, repairing, and updating the space to ensure it meets the standards required for occupancy. Makeready activities can include painting, fixing fixtures, replacing flooring, and ensuring all systems are in working order.
making a mortgage loan
Making a mortgage loan means closing a mortgage loan in a person’s name, advancing funds, offering to advance funds, or making a commitment to advance funds to an applicant for a mortgage loan.
management
Refers to the amount of personal or hired time, it takes to run the investment.
management agreement
A contract between the owner of income property and a management firm or individual property manager that outlines the scope of the manager’s authority.
management plan
A property management plan is a comprehensive document that outlines how a property, whether residential, commercial, or industrial, will be managed over a specific period. It is typically created by property owners, property managers, or real estate investors to establish guidelines and procedures based on market analysis and the owner’s goals for the property. (See market analysis, property analysis)
management pricing worksheet
A management pricing worksheet is a tool used by property management companies to analyze and set prices for their management services, ensuring they cover costs and achieve desired profit margins. It typically includes variables such as cost of services, operational expenses, market conditions, and competitor pricing.
managing broker
A person acting on behalf of a real estate firm to perform real estate brokerage services under the supervision of the designated broker, and who may supervise other brokers or managing brokers licensed to the firm.
mandatory settlement conference
A mandatory settlement conference is a court-required meeting with the parties to a foreclosure action within 60 days of when the plaintiff files a proof of service of the complaint.
manifest error
Complete disregard of case facts and the applicable rule or law as an indisputable error of judgment that affected the decision-making process, and may have had an outcome on the decision that was made.
manifest system
Tracking of hazardous waste from “cradle to grave” (generation through disposal), with accompanying documents known as “manifests.” (See hazardous waste)
manufactured home
A structure (transportable in one or more sections) when in the traveling mode, is eight body feet or more in width, or 40 body feet or more in length, or, when erected on site, is 320 or more square feet. It is built on a permanent chassis and designed to be used as a dwelling, with or without a permanent foundation, when connected to the required utilities, and includes the plumbing, heating, air conditioning, and electrical systems contained therein. (H & S Code SS 18007) Manufactured Housing Institute
manufactured home loan
A manufactured home loan, also known as a mobile home loan, is a type of loan designed specifically for the purchase or refinance of a factory-built home that is not permanently affixed to a foundation. If the manufactured home is permanently affixed to the land then the loan finances both the purchase of the manufactured home and the land where it is placed, much like a traditional real estate loan.
manufactured home park
A manufactured home park, also known as a mobile home park, is a residential area where multiple manufactured homes are situated on leased lots within a larger plot of land. These parks provide infrastructure such as roads, utilities, and sometimes communal facilities like pools or clubhouses. Residents typically own their manufactured homes but pay rent for the use of the lot and any amenities provided by the park management.
margin
In an adjustable rate loan, the amount added to the index rate that represents the lender’s cost of doing business (including costs, profits and risk of loss on the loan). Generally the margin stays constant during the life of the loan. (See adjustable-rate loan, index rate)
marginal tax rate brackets
The marginal tax brackets dictate the tax rate percentage you pay on each additional dollar of income you earn as you increase tax brackets.
marginal tax rate brackets
The marginal tax brackets dictate the tax rate percentage you pay on each additional dollar of income you earn as you increase tax brackets. (See Federal income tax, tax rate tables)
marital status
Persons classified in one of four relationship categories: never married, married, widowed, or divorced.
marker
In the metes-and-bounds system, markers are used to clearly mark the point of beginning and the boundaries of a tract of land. (See legal description, metes-and-bounds)
market
A place where goods can be bought and sold and a price established.
market analysis
A regional and neighborhood study of economic, demographic and other factors made to determine supply and demand, market trends, and other factors important to leasing and operating a specific property.
market approach
A method of pricing single-family rental homes and condos using comparable market data. When pricing multiple unit rental properties, the income approach is probably better. (See comparative market analysis, net income approach)
market data approach
Also known as the sales comparison approach. An estimate of value obtained by comparing property being appraised with recently sold comparable properties.
market extraction method
The process of estimating the value of a property by examining and comparing actual sales of comparable properties. (See appraisal)
market rent
The rent that could be charged for property at the present time, based on demand and the supply of comparable properties. (See contract rent)
market share
Market share is the percentage of an industry or market’s total sales earned by a particular company over a specified time period. Market share is calculated by taking the company’s sales over the period and dividing it by the total sales of the industry over the same period. This metric is used to give a general idea of the size of a company to its market and its competitors.
market value
The most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale. Such conditions include the assumption that the buyer and seller acted prudently and knowledgeably and that the price is not affected by undue stimulus. (See value)
market-data approach
Estimating a property’s value based on a comparison of the property with similar properties in the same locale that have sold recently. Also known as the direct sales comparison approach. (See appraisal)
market-oriented industries
Market-oriented industries are sectors that locate their operations close to their consumer markets to minimize transportation costs, respond quickly to market demand, and better understand customer preferences. These industries often produce goods and services that need to be readily available to consumers, such as food and beverage production, retail, and certain types of manufacturing. By being near their markets, these industries can improve their efficiency, reduce delivery times, and enhance their competitive advantage.
marketable title
Good or clear title, reasonably free from the risk of litigation over possible defects.
marketing plan
A product-specific, market-specific, or company-wide plan to achieve specific marketing objectives within a set timeframe. A marketing plan begins with the identification of specific customer needs and plans to fulfill them while generating acceptable returns. It usually includes analysis of market opportunities, detailed action plans, budgets, sales forecasts, strategies, and projected financial returns.
marketing services agreement
Marketing services agreements, or “MSAs,” are agreements that commonly involve an arrangement where one person (or company) agrees to market or promote the services of another and receives compensation in return. MSAs may involve only settlement service providers or may also involve third parties who are not settlement service providers. For example, an MSA exists when a mortgage loan originator agrees to market or promote the services of a real estate agent in return for compensation.
marketing time
According to Uniform Standards of Professional Appraisal Practice (USPAP), the time it might take to sell the property interest at the appraised market value during the period immediately after the effective date of the appraisal.
masonry
Any construction material or methods involving bricks and mortar or related materials. (See construction terms)
Massachusetts bank
Massachusetts bank means any bank, other than an association or corporation, chartered pursuant to M.G.L. c. 171.
Massachusetts branch
Massachusetts branch means a branch in the commonwealth of any out-of-state bank.
master deed
The principal conveyance document used by the owners of land on which condominiums are located. (See fictitious deeds of trust)
master insurance policy(ies)
Insurance policy(ies) issued and paid for by the homeowners association (HOA) to cover HOA common areas, liability, the structure, etc. Buyers/owners should take these policies to their personal insurance agent to determine if there are any gaps in coverage that apply for their particular unit.
master plan
A comprehensive plan to guide the long-term physical development of a particular area. (See comprehensive zoning, general plan, regional planning, urban planning)
master-planned community
Two or more subdivisions with CC&Rs. This is an Arizona-specific definition. A generic definition might be here: planned unit development.
matched pairs analysis
A method of estimating the amount of adjustment for the presence or absence of any feature by pairing the sales prices of otherwise identical properties with or without the features in question. A sufficient number of sales must be found to allow the appraiser to isolate the effect on value of the pertinent factor (also called paired data set analysis and paired sales analysis).
matched pairs analysis
A method of estimating the amount of adjustment for the presence or absence of any feature by pairing the sales prices of otherwise identical properties with or without the features in question. A sufficient number of sales must be found to allow the appraiser to isolate the effect on value of the pertinent factor (also called paired data set analysis and paired sales analysis).
material change
A material change is a change that would be important to a reasonable borrower in making a borrowing decision, including a change in the interest rate, a change in the type of loan offered, or a change in fees to be charged to a borrower greater than $100.
material fact
Any fact that is relevant to a person making a decision. Agents must also disclose to buyers material facts about the condition of the property, such as known structural defects, building code violations and hidden dangerous conditions. Brokers are often placed in a no-win situation of trying to evaluate whether a certain fact is material enough that it needs to be disclosed to a prospective buyer, such as the fact that a murder occurred on the property 10 years ago or the fact that the neighbors throw loud parties. It is sometimes difficult to distinguish between “fact” and “opinion.” The statement “real property taxes are low” is different from “real property taxes are $500 per year.” Even though brokers act in good faith, they may still be liable for failure to exercise reasonable care or competence in ascertaining and communicating pertinent facts that the broker knew or “should have known.” Many state laws provide that the fact that an occupant of property has AIDS is not deemed to be a material fact. A broker who fails to disclose this fact is not liable for concealment of a material fact.
material facts
Any fact that is relevant to a person making a decision. Agents must also disclose to buyers material facts about the condition of the property, such as known structural defects, building code violations and hidden dangerous conditions. Brokers are often placed in a no-win situation of trying to evaluate whether a certain fact is material enough that it needs to be disclosed to a prospective buyer, such as the fact that a murder occurred on the property 10 years ago or the fact that the neighbors throw loud parties. It is sometimes difficult to distinguish between “fact” and “opinion.” The statement “real property taxes are low” is different from “real property taxes are $500 per year.” Even though brokers act in good faith, they may still be liable for failure to exercise reasonable care or competence in ascertaining and communicating pertinent facts that the broker knew or “should have known.” Many state laws provide that the fact that an occupant of property has AIDS is not deemed to be a material fact. A broker who fails to disclose this fact is not liable for concealment of a material fact.
material terms and conditions
Material terms and conditions include credit scores, debt to income ratios, loan to value ratios, and occupancy types.
maturity
Maturity is the date when the principal balance of a loan becomes due and payable.
mean
The average of all items included within a group, calculated by dividing the sum of the individual items, or variates, by the number of variates. (See variate)
measuring life
The person, usually the holder of a life estate, against whose life the duration of the life estate is determined.
mechanic’s lien
A statutory lien in favor of a building contractor (architects and designers in some states) to secure payment for materials supplied and services rendered in the improvement, repair or maintenance of real property. (See lien)
median
The middle figure in a set of numbers.
median price
“Median price” refers to the middle figure in a set of numbers, for example the purchase price of homes in a given area.
mediation
A process where a neutral third party intervenes between the disputing parties to reach a satisfactory solution.
mediation decisions
Mediation decisions are essentially negotiated solutions, primarily involving personnel issues and customer service.
medium of exchange
A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system. In a barter system, people who want to trade must want exactly what the other has to offer, when and where it is offered, so that the exchange can occur. A medium of exchange permits the value of a good to be assessed and rendered in terms of the intermediary, most often, a form of money widely accepted to buy any other good.
meeting of the minds
Refers to what happens when two parties to an agreement (contract) both have the same understanding of the terms of the agreement. Such mutual comprehension is essential to a valid contract. It is provable by the express provisions of a written contract, without reference to any statements or hidden thoughts outside the writing.
megabyte (MB)
1,000,000 bytes (See bit, byte)
megahertz (MHz)
One million cycles per second
Megan’s Law
Megan’s Law is a statute in the United States that requires law enforcement authorities to make information available to the public regarding registered sex offenders. It was established in 1996 in response to the murder of Megan Kanka, with the intent to help communities protect themselves from individuals who have committed sex crimes. Under Megan’s Law, each state has its own system for registering offenders and disseminating this information, which can include the offender’s address, photograph, and nature of their crime, accessible through various online registries or local police notifications.
Mello-Roos Bonds
Based on passage of the Mello-Roos Community Facilities Act of 1982, certain housing tracts may be within what are called “community facilities districts” where special taxes are assessed to finance designated public facilities and/or services. Mell-Roos liens are usually municipal bonds issued to fund streets, sewers and other infrastructure needs before a housing development is built. These special assessments are paid by the seller and will be assumed by the buyer. (See Mello-Roos Community Facilities Act)
Mello-Roos Community Facilities Act
California law that requires property owners benefiting from public improvements financed by bond issues to repay the bonds; requires notification to a prospective purchaser of lien assessments on the property. (See Mello-Roos Bonds)
mentor
Person or program that facilitates the personal and professional growth of others.
mentor program
A training program in a real estate office wherein newly-hired agents assist successful, knowledgeable salespersons for a period of time.
mentoring
Person or program that facilitates the personal and professional growth of others.
mercantilism
An economic policy of European trading states during the 16th, 17th, and 18th centuries when, through exploration and colonization, they extended European power to other parts of the globe. The policy emphasized strong state control over imports and exports with a view to importing only raw materials, exporting finished goods, and accumulating precious metals that could be used to pay mercenary armies.
merger
The joining of a lesser right with a greater right so that the lesser right is lost.
meridian
A meridian is one of a set of imaginary lines running north and south used by surveyors for reference in locating and describing land under the government survey method of property description. (See guide meridian)
MERS
Mortgage Electronic Registration System (MERS) holds title technically as nominee for the true mortgagees and beneficiaries in its system. As transfers occur they are recorded on MERS’s computer in a book-entry system similar to the transfer of stocks.
metabolism
The sum of the processes in the building up and the destruction of protoplasm, i.e., the chemical changes in living cells by which energy is provided for vital processes and activity and the creation of new complex chemicals assimilated to repair damage. (See catabolism)
metadata
Data about data. This is the data that is in the programming code for a webpage, but does not show up when the webpage displays. It sits behind the page and is read by search engines which index the information about the website in their directory.
metes-and-bounds description
Metes-and-bounds is a legal description of a parcel of land that begins at a well marked point and follows the boundaries, using directions and distances around the tract, back to the point of beginning. (See legal description, marker)
Metropolitan Divisions
The U.S. Office of Management and Budget divides every Metropolitan Statistical Area (MSA) with a population of 2.5 million or more into Metropolitan Divisions (MDs). MSAs with populations under 2.5 million population are not so divided. (See Metropolitan Statistical Area)
Metropolitan Statistical Areas
The U.S. Office of Management and Budget defines Metropolitan Statistical Areas and Metropolitan Divisions to provide nationally consistent definitions for collecting, tabulating, and publishing Federal statistics for a set of geographic areas. OMB divides every Metropolitan Statistical Area (MSA) with a population of 2.5 million or more into Metropolitan Divisions (MDs); MSAs with populations under 2.5 million population are not so divided.
microchip
Incredibly complex yet tiny modules that store computer memory or provide logic circuitry for microprocessors. (See CPU, microprocessor, RAM, ROM, SDRAM)
microeconomics
The study of individual units within the general economy including households and business firms. (See macroeconomics)
microprocessor
Silicon chips containing the CPU, ALU and memory. (See CPU, microchip, RAM, ROM, SDRAM)
mid-month convention
The mid-month convention is a rule that affects how non-residential property can be depreciated for tax purposes. Non-residential rental properties are depreciated according to a 39-year life. However, mid-month convention allows only 11.5 months depreciation the first and last year of ownership.
Military airport – Arizona Definition
An airport that is operated by an armed force of the United States and that is primarily used for military fixed wing aircraft operations, excluding a runway or airstrip that is not immediately adjacent to facilities primarily used for operational control, maintenance and permanent parking of aircraft.
military ordnance location
Certain military bases contain live ammunition for various reasons. A seller of residential property located within one mile of such a hazard must give the buyer written notice as soon as practicable before transfer of title.
mill
One-tenth of one cent. Some states use a mill rate to compute real estate taxes; for example, a rate of 52 mills would be $0.052 tax for each dollar of assessed valuation of a property.
mind-mapping
A way to learn, recall, retain, and apply information using the whole brain, devised by Tony Buzan.
mineral rights
Mineral rights are rights to the subsurface land and profits derived therein. Normally, when real property is conveyed, it includes everything above and below the surface of the land, except where specified by the grantor.
minerals
Any of various inorganic homogeneous crystalline chemical elements or compounds that result from the inorganic processes of nature.
minimum level of services
The services that real estate professionals must provide to clients, as prescribed differently by certain states; for example, assisting clients in negotiation and answering questions from clients about offers, counteroffers, and contingencies.
minimum property requirements
A regulation imposed by the US Federal Housing Authority (FHA) that requires a minimally acceptable property condition for FHA-insured or VA-guaranteed loans; usually determined by compliance with loan building codes.
ministorage centers
Ministorage centers, also known as self-storage facilities, are businesses that provide secure storage units for individuals and businesses to rent on a short-term or long-term basis. These facilities offer various unit sizes to accommodate different storage needs, from personal belongings and household items to business inventory and equipment. Ministorage centers are often located in convenient, accessible areas to serve local communities, offering features such as climate control, security systems, and flexible rental agreements.
minor
A person who has not reached the age of majority and therefore does not have legal capacity to transfer title to real property.
MIPS
Millions of instructions per second (MIPS). A measure of computer speed.
misdemeanor
Offenses less serious than felonies and generally punishable by a fine or imprisonment less than one year.
mislabeled
Mislabeled means varying from the standard of truth or disclosure in labeling prescribed by statute or administrative regulation or, if none, as set by established commercial usage; represented as being another person’s product, though otherwise labeled accurately as to quality and quantity.
misleading statement
A misleading statement is an offer to sell property or services when the offerer does not intend to sell or provide the advertised property or services at a price equal to or lower than the price offered, or in a quantity sufficient to meet the reasonably expected public demand, unless the quantity available is specifically stated in the advertisement.
misrepresentation
A false statement or concealment of a material fact made with the intention of inducing some action by another party.
mission statement
A mission statement defines what an organization is, why it exists, its reason for being. At a minimum, it should define the organization’s primary customers, its products and services, and the geographical location it serves. Everything the organization does should support the mission.
mistake
An error or misunderstanding. A contract is voidable if there is a mistake that is mutual, material, unintentional and free from negligence, such as both parties honestly contracting for a different lot in a subdivision (mistake of fact). Innocent mistakes seldom serve to void a contract. A party cannot claim “mistake” to get out of a contract on the basis that he or she did not read the contract he or she signed and was therefore mistaken as to its material terms; neither ignorance nor poor judgment is a mistake of fact. Nor can a party claim mistake in not knowing the legal consequences upon signing the contract (mistake of law). When there is an ambiguity known by one party who fails to explain the mistake to the innocent party, the innocent party’s interpretation generally will prevail.
mitigation
Measures taken to reduce adverse impacts on the environment. To make less severe, as in the “mitigation” of enviromental hazards.
mixed economies
Mixed economies are contemporary economies in which economic decisions and actions are undertaken in both private and public spheres; neither socialism nor capitalism but a mix of elements of both. In today’s world, there are no pure market economies and no pure command economies.
mixed-use developments (MXDs)
MXDs combine office space, stores, theaters and apartment units in a single community. MXDs usually contain and offer laundry facilities, restaurants, food stores, valet shops, beauty parlors, barbershops, swimming pools and other attractive and convenient features. (See highrise developments)
mixed-use zoning
Mixed use zones define a mix of uses that can be allowed as part of a single development project or as part of district or corridor. Development standards can be crafted to allow for shared parking arrangements and common open space areas. Certainly, regulations should also be included to avoid conflicts between uses, such as limiting late-night operations of businesses located directly below or above a residential use.
mobile-home
Prefabricated trailer-type housing units that are semipermanently attached to land, which is either the owner’s fee land or a leasehold, such as in a mobile-home park. Mobile homes are usually affixed to a concrete foundation and connected to utilities. Although they may not be as mobile as the word implies, they may be removed from such attachments and hauled to a new location. In this respect mobile homes possess the features of both real and personal property. They are like real property when the units are attached to the earth’s surface, and like personal property when they are detached and moved. The courts, however, generally consider a mobile home as a fixture and thus treat it as real property.
mobile-home dealer
A mobile home dealer is an agent who displays or offers for sale two or more registered mobile homes at the agent’s place of business, and requires a license issued by the California Department of Housing and Community Development.
mobile-home loan
A mortgage loan on a large mobile-home, usually drawn for a shorter term than conventional mortgages. (mobile-home)
Mobilehome Residency Law (MRL)
Portion of California Civil Code that regulates manufactured (mobile) home rental agreements, charges, grounds for eviction, and eviction procedures.
www.hcd.ca.gov/codes/mp/2013MRL.pdf
mode
The most frequently occurring variate. (See variate)
model
A description or analogy to help visualize something that cannot be directly observed; a system of postulates, data, and inferences presented as a mathematical description of an entity or state of affairs.
moderate rentals
Moderate rentals are rent charges less than those rents generally charged for new dwelling units of comparable size and location built by the unassisted efforts of private enterprise and financed at then-current market interest rates.
moderately priced property
Moderately Priced Properties have decent cash flows, decent credit quality tenants, and are in the non-fancy areas. They are what a smart investor will target. These are both residential and commercial properties. You can spot these properties as they will have 4% – 8% Cash on Cash Returns.
modified IRR (MIRR)
Internal rate of return (IRR) has many issues, one is that in an IRR calculation the computer assumes that all cash flows generated by the property will be reinvested at the overall IRR. So the modified IRR calculation compensates by allowing one to input an assumed reinvestment rate.
modular housing
A relatively recent concept in home construction, aimed at producing housing more economically and faster through prefabricating processes; also called prefabricated housing. Modular methods expedite construction because the house itself can be built in the factory while the building site is being prepared, thus potentially eliminating costly delays. Some courts have held that the sale of an unattached modular home is the sale of personal property, and thus no written listing or real estate license is required to earn a commission.
modulation
A regulating according to measure or proportion; the process of varying the amplitude, frequency, or phase.
mold
Molds are simple, microscopic organisms that are present virtually everywhere both indoors and outdoors. Molds are fungi and are needed to break down dead material and recycle nutrients in the environment. For molds to grow and reproduce they need only a food source such as leaves, wood, paper, or dirt – and moisture.
monetary policy
Governmental regulation of the amount of money in circulation through such institutions as the Federal Reserve Board. (See Federal Reserve)
money
Any object or commodity that people in a given society or group commonly accept and use in payment in exchange for goods or services.
money laundering
Money laundering is the act of engaging in transactions designed to obscure the origin of money that has been obtained illegally.
money market
The financial market that brings together investors who trade short-term money instruments, such as Treasury bills and commercial paper.
monolithic organization
A monolithic organization is a highly centralized operation, functioning as a single (mono) unit, with work being structured to flow from one singular source of authority at the top of the organization.
monopoly
A market in which there is only one seller of a good or service. (See imperfect markets)
monopsony
A market in which there are only a few sellers of a good or service. (See imperfect markets)
month-to-month tenancy
A periodic tenancy under which the tenant rents for one month at a time. In the absence of a rental agreement (oral or written) a tenancy is generally considered to be month to month.
monthly housing payment
The total of the PITI (principal, interest, taxes, insurance) plus Homeowners association (HOA) fees and private mortgage insurance (PMI) costs.
monthly index of long-term United States government bond yields
The monthly index of long-term United States government bond yields is the monthly unweighted average of the daily unweighted average of the closing bid yield quotations in the over-the-counter market for all outstanding U.S. Treasury bond issues, based on available statistics, which are either maturing or callable in ten years or more. This index is expressed in terms of percentage interest per annum.
monument
A monument is a fixed natural or artificial object used to establish real estate boundaries for a metes-and-bounds description. (See metes-and-bounds description)
moratorium
A temporary suspension of payments due under a financial obligation in order to help a distressed borrower recover from financial difficulties and avoid default and foreclosure. (See workout)
moratorium
A temporary suspension of issuing building permits. (See workout)
Morgan Property Taxpayers’ Bill of Rights
A California law effective January 1, 1994, that ensures that taxpayers are provided fair and understandable explanations of their rights and duties with respect to property taxation, prompt resolution of legitimate questions and appeals regarding their property taxes, and prompt corrections when errors have occurred in property tax assessments.
mortgage
A legal document used to secure the performance of an obligation. The term mortgage, which is derived from the French words mort meaning “dead” and gage meaning “pledge,” is appropriate in that the pledge is extinguished only after the debt is paid. In the usual real estate transaction, the buyer seeks to borrow money to pay the seller the difference between the down payment and the purchase price. When the lender (mortgagee) lends the money, the buyer/borrower (mortgagor) is required to sign a promissory note for the amount borrowed and to execute a mortgage to secure the debt. The purpose of the mortgage note is to create a personal liability for payment on the part of the mortgagor; the purpose of the mortgage is to create a lien on the mortgaged property as security for the debt.
mortgage
A mortgage is a lien, other than a judgment, on a fee simple estate or leasehold in real property located in Pennsylvania, together with the credit instruments secured. Mortgage includes both insured and uninsured mortgages.
mortgage
A mortgage is the loan for a property, but only in about one-half the U.S. states. A mortgage is a document spelling out the rights and responsibilities of the borrower and lender related to the loan, and is typically notarized and recorded on the property at the courthouse. In California and the other half of the states, two documents, the deed of trust (DOT) and promissory note, are used instead of a mortgage and serve the same purpose.
mortgage
A lien on the property that secures the promise to repay a loan. A security agreement between the lender and the buyer in which the property is collateral for the loan. The mortgage gives the lender the right to collect payment on the loan and to foreclose if the loan obligations are not met.
mortgage
A lien on the property that secures the promise to repay a loan. A security agreement between the lender and the buyer in which the property is collateral for the loan. The mortgage gives the lender the right to collect payment on the loan and to foreclose if the loan obligations are not met.
mortgage banker
A person, corporation or firm (not otherwise in banking and finance) that normally provides its own funds for mortgage financing as opposed to savings and loan associations or commercial banks that use other people’s money—namely that of their depositors—to originate mortgage loans. Although some mortgage bankers do supply permanent long-term financing, the majority specialize in supplying short-term and interim financing, either through their own resources or by borrowing from commercial sources.Mortgage Bankers Association of America Website
mortgage banker (Arizona definition)
A person who for compensation or in the expectation of compensation either directly or indirectly makes, negotiates or offers to make or negotiate a mortgage banking loan or a mortgage loan.
Mortgage banking letters
Mortgage banking letters are sent periodically to affected parties by the superintendent of banks to highlight or explain hot topics.
mortgage broker (Arizona definition)
A person who for compensation or in the expectation of compensation either directly or indirectly makes, negotiates or offers to make or negotiate a mortgage loan.
mortgage broker/company
A person or firm that acts as an intermediary between borrower and lender; one who, for compensation or gain, negotiates, sells or arranges loans and sometimes continues to service the loans; also called a loan broker. Loans originated by the mortgage broker are closed in the lender’s name and are usually serviced by the lender. This is in contrast to mortgage bankers, who not only close loans in their own names but continue to service them as well. Many mortgage brokers are also licensed as real estate brokers and provide these financing services as supplements to their realty services. (See mortgage)
mortgage call report
A mortgage call report is a single report of condition that reflects the entire mortgage activity and financial information of a company.
mortgage commitment
A mortgage commitment is a legally binding obligation to lend money on the security of a residential mortgage.
mortgage constant
The first-year debt payment divided by the beginning loan balance.
mortgage credit certificates
Mortgage credit certificates feature dollar-for-dollar federal income tax credits that qualified borrowers purchasing a home in a State of New York Mortgage Agency (SONYMA) target area can receive.
Mortgage Disclosure Improvement Act (MDIA)
Enacted in July 2008 as an amendment to the Truth in Lending Act (TILA) to require mortgage loan cost disclosures to consumers. Early disclosure (a good-faith estimate) of mortgage loan cost must be provided within three business days of receiving a consumer’s application for a mortgage loan; a creditor must wait seven business days after providing the early disclosures before closing the loan; and a creditor must provide new disclosures and wait an additional three business days before closing the loan, if a change occurs that makes the annual percentage rate quoted in the early disclosure inaccurate beyond a specified tolerance.
mortgage financing
The process of borrowing money to purchase or refinance property where the loan, the mortgage, to you is secured by real property, like a home or rental property.
Mortgage Foreclosure Law (Chapter 507 of the Laws of 2009)
The Mortgage Foreclosure Law (Chapter 507 of the Laws of 2009) targets the mortgage crisis by providing further assistance to homeowners who are at risk of losing their homes and by assisting tenants in foreclosed properties and by refining some of the prior amendments of the Banking Law regarding mortgage lending.
mortgage fraud cells
Mortgage fraud cells consist of a network of individuals who operate in various roles as developers, recruiters, borrowers, real estate agents, loan brokers, appraisers, attorneys, and lenders operating in various combinations and capacities to obtain fraudulent mortgage loans.
mortgage insurance
A kind of insurance policy that will pay off the mortgage balance in the event of death, and in some policies, disability. Premiums are paid with the regular monthly mortgage payment. (See mortgage)
mortgage insurance premium
The fee paid by a mortgagor to obtain Mortgage Insurance on a mortgage loan. The fee may be collected as a lump sum at loan closing or as a periodic amount included in the monthly payment, or both. (See mortgage insurance)
mortgage insurance premiums (MIP)
Most FHA loans require the borrower to pay two mortgage insurance premiums: one up front paid at closing; the second is an annual premium based on the loan balance each year. (See mortgage insurance)
mortgage interest deduction (MID)
This is the tax deduction on personal residences that an individual gets for writing off the mortgage interest (not mortgage payment, just the interest portion of the payment) on their Schedule A – Itemized Deductions. Most people add in the property tax deduction and just call the sum of both interest and property taxes their “Mortgage Interest Deduction”.
mortgage interest deduction (MID)
This is the tax deduction on personal residences that an individual gets for writing off the mortgage interest (not mortgage payment, just the interest portion of the payment) on their Schedule A – Itemized Deductions. Most people add in the property tax deduction and just call the sum of both interest and property taxes their “Mortgage Interest Deduction.” (See Schedule A form)
mortgage lender
A mortgage lender is a person engaged in the business of making mortgage loans for compensation or gain.
mortgage lien
A lien or charge on the property of a mortgagor that secures the underlying debt obligations. (See lien)
mortgage loan
Any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling or residential real estate upon which a dwelling is constructed or intended to be constructed.
mortgage loan
A mortgage loan is a loan or agreement to extend credit made to a natural person. The loan is secured by a deed to secure debt, security deed, mortgage, security instrument, deed of trust, or other document representing a security interest or lien upon any interest in one- to four-family residential property located in Georgia, regardless of where made, including the renewal or refinancing of any loan.
mortgage loan
A mortgage loan is a residential loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other security interest on a dwelling or for the purchase of residential real estate upon which a dwelling is to be constructed; a loan on commercial real property if the borrower is an individual or the lender is a noninstitutional investor; or a loan on improved real property consisting of five or more dwelling units if the borrower is an individual or the lender is a noninstitutional investor.
mortgage loan (Arizona definition)
A loan, other than a mortgage banking loan secured by a mortgage or deed of trust or any lien interest on real estate located in this state created with the consent of the owner of the real estate.
mortgage loan application
A mortgage loan application is the submission of a borrower’s financial information in anticipation of a credit decision, which includes the borrower’s name, the borrower’s monthly income, the borrower’s social security number to obtain a credit report, the property address, an estimate of the value of the property, the mortgage loan amount sought, and any other information deemed necessary by the loan originator. An application may be in writing or electronically submitted, including a written record of an oral application.
mortgage loan brokerage
A mortgage loan brokerage is an individual or company that brings borrowers and lenders together. In California, a real estate broker’s license also includes the authority to act as a mortgage broker. In California, a real estate licensee who conducts mortgage loan origination (MLO) activities for residential property of one to four units must obtain an MLO license endorsement that is attached to the real estate license and renewed annually.
mortgage loan company
A mortgage loan company is any person defined as such in the Mortgage Loan Company Act (New Mexico).
mortgage loan disclosure statement
Borrower disclosure mandated by Article 7 of the Real Estate Law. (See Article 7)
mortgage loan originator (MLO)
A mortgage loan originator (MLO) is an individual who, for compensation or gain or in the expectation of compensation or gain, takes a residential mortgage loan application or offers to negotiate the terms of a residential mortgage loan application.
mortgage loan rate-lock commitment
A mortgage loan rate-lock commitment is a written or electronically transmitted confirmation issued to a consumer by a mortgage lender for a mortgage loan that, subject to the terms set forth, obligates the mortgage lender to make a mortgage loan at a specified interest rate.
mortgage note
A legal document obligating a borrower to repay a loan at a stated interest rate during a specified period; the agreement is secured by a mortgage that is recorded in the public records along with the deed.
mortgage participation
Mortgage participation refers to a situation where multiple lenders or investors share in the ownership and risk of a mortgage loan. This is typically done through a participation agreement, which outlines each party’s rights and responsibilities regarding the loan.
First, a lender originates a loan to a borrower, then sells a portion of the to other investors. Each participant shares in the risk and rewards of the loan based on their percentage of participation. The originating lender typically retains the servicing rights to the loan.
mortgage points rate buy down
When s person borrows money they might decide to pay “points” to lower or “buy down” the mortgage interest rate. One “point” is 1.0% of the loan balance, or 100 basis points.
mortgage revenue bonds
A type of tax-exempt industrial development bond offered by state and local governments through their housing financing agencies. (See industrial development bonds)
mortgage servicer
To act as a mortgage servicer means to engage in the business of receiving any scheduled periodic payments from a borrower pursuant to the terms of any mortgage loan, including amounts for escrow accounts, and making the payments of principal and interest and other payments with respect to the amounts received from the borrower as may be required pursuant to the mortgage loan, the mortgage servicing loan documents, or servicing contract.
mortgage servicing disclosure
This disclosure statement is provided to the borrower by the lender. It informs the borrower whether the lender intends to keep the loan or transfer it to a different lender for servicing. This is important because the borrower will need to know where to send payments and who to contact for questions or concerns. If the lender intends to transfer the servicing of the loan to a different company, the disclosure will explain the process and timing of the transfer. The disclosure also includes information on how the borrower can resolve complaints or disputes related to the servicing of their loan.
mortgage-backed security (MBS)
A security guaranteed by pools of mortgages and used to channel funds from securities markets to housing markets. Ginnie Mae has a popular MBS program recognized for its low risk and high yield. The Ginnie Mae MBS security is a pool of VA and FHA mortgages put together as a bond. Freddie Mac and Fannie Mae also have MBS programs. (See FHA, Fannie Mae, Freddie Mac, Ginnie Mae, VA loan)
mortgagee
In a mortgage transaction, the party who receives and holds a mortgage as security for a debt, the lender. A lender or creditor who holds a mortgage as security for payment of an obligation. (See mortgagor)
mortgagee’s title insurance
An insurance policy protecting the lender for the amount of the loan in the event of a future title dispute. (See owner’s title insurance, title insurance)
mortgagor
In a mortgage transaction, the buyer/borrower is the mortgagor. The mortgagor is required to sign a promissory note for the amount borrowed and to execute a mortgage to secure the debt. The mortgage note creates a personal liability for payment on the part of the mortgagor. (See mortgagee, promissory note)
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Mrs. Murphy
The common description of the exemption that applies to an owner-occupied building with four or fewer units.
multi-intelligences
Ways of learning (ie, through sound, sight, aromas, taste, movement, with others or within oneself) that address capabilities of thinking and expressing oneself in words, music, mathematical expression, visual images, empathetic understanding of people, and self-awareness and understanding.
multi-lender rule loans
Loans involving 10 or fewer investors regulated by the Corporation Commissioner.
Multi-State Mortgage Committee
The Multi-State Mortgage Committee is comprised of 10 appointed State Regulator members and one member who is from the Conference of State Bank Supervisors (CSBS). The role of the MMC is to implement cooperative protocol between state agencies and the financial industry. (Conference of State Bank Supervisors)
multiclass mortgage securities
Short- and long-term mortgage securities, with or without pass-through privileges. (See pass-throughs)
multiperil policies
Many insurance companies offer multiperil policies for apartment and commercial buildings. Such a policy offers the property manager an insurance package that includes standard types of commercial coverage, such as fire, hazard, public liability and casualty. Special coverage for earthquakes and floods is also available.
multiple listing service (MLS)
A marketing organization composed of member brokers who agree to share their listing agreements with one another in the hope of procuring ready, willing and able buyers for their properties more quickly than they could on their own. Most multiple-listing services accept exclusive-right-to-sell or exclusive agency listings from their member brokers. Members have access to the MLS database of properties for sale through the MLS website.
multiple-category loans
If a loan is a home improvement loan as well as a refinancing, an institution reports the loan as a home improvement loan. If a loan is a home purchase loan as well as a home improvement loan or a refinancing, an institution reports the loan as a home purchase loan. These are examples of multiple-category loans.
multiple-listing clause
A provision in an exclusive listing for the authority and obligation on the part of the listing broker to distribute the listing to other brokers in the multiple-listing organization. (See multiple-listing service)
municipal bonds
Bonds issued to finance public improvements such as parks, schools and urban renewal projects.
muscle
A body tissue consisting of long cells that contract when stimulated and produce kinetic motion; an organ that is essentially a mass of muscle tissue attached at either end to a fixed point and that by contracting moves or checks the movement of a joint through its range of motion. (See blood, smooth muscle, striated muscle, skeleton, tissue)
musculoskeletal
Involving both the musculature and the skeleton. (See skeleton)
must-buy buyers
Buyers looking for properties that meet specific needs. (See must-sell sellers)
must-sell sellers
A highly motivated or desperate seller. (See must-buy buyers)
mutual consent
A meeting of the minds; a mutual assent of the parties to the formation of a contract.
mutual mortgage insurance
Insurance premiums and other specified FHA revenues are paid into one of four FHA funds. Losses due to foreclosure are met from these funds.
mutuality of contract
Agreement that imposes obligations on both parties.