M Terms Flashcards
Mortgage Guaranty Insurance Corporation (MGIC)
A private mortgage insurance (PMI) carrier.
mutual savings bank
A bank owned by its depositors and paying dividends, not interest, to the depositors. Located in several northeastern states, such a bank can make real estate loans anywhere in the nation.
mutual mortgage insurance (MMI)
FHA insurance that protects the lender against buyer default.
mutual mistake
The mistake of both parties to an agreement. A mutual mistake as to fact allows a mistaken party to void the agreement.
mutual consent
The meeting of minds required for a binding contract.
multiple listing service (MLS)
An organization of member real estate professionals in which listing agreements are shared to increase the chances of a sale
muniment of title Deeds.
mortgage insurance premium (MIP)
FHA insurance.
multiple listing
A listing, usually an exclusive right-to-sell listing, given out to a group of cooperating brokers who are members of a multiple listing service.
mudsill
The lowest board on a house that rests on the foundation. It is often constructed of redwood or treated lumber to resist rot. Also called a sill.
mortgagor
The owner or the buyer of property who gives the mortgage.
mortgagee
One who receives the mortgage; a lender or a seller (under a purchase money mortgage).
mortgage loan correspondent
A firm that arranges the sale of existing loans in the secondary mortgage market.
mortgage loan originator (MLO)
Subject to minimum standards of licensing and registration.
mortgage note
The note that reflects the promise to pay the mortgage debt. The mortgage is security for the note.
Mortgage Electronic Registration System (MERS)
A private national mortgage database in which MERS may hold a mortgage note.
mortgage broker
Broker who arranges a loan between a borrower and a lender.
mortgage banker
Mortgage company that originates loans that are then sold in secondary mortgage market.
mortgage
A security device for real estate. In lien theory states, the mortgagor retains title and gives the mortgagee a lien. In title theory states, the borrower retains possession but gives the lender or trustee title as security.
monument
A fixed surveyor’s marker for a metes-and-bounds description; can be natural (such as a rock or tree) or artificial (such as an iron stake).
monetary policy
Policy of Federal Reserve to adjust availability and cost of funds.
mitigation of damages
The duty of an injured party to use reasonable efforts to keep the damages as low as possible when the other party breaches a contract.
misrepresentation
A false statement to induce another to act. It makes a contract voidable at the option of the injured party. Unlike fraud, misrepresentation does not require intent to deceive.
minor
Any person younger than contractual age.
mineral, oil, and gas rights
The absolute right to extract minerals, oil, and gas (a real property interest).
mineral, oil, and gas lease
Lease rights to extract minerals, oil, and gas for the lease period (a personal property interest).
mill
One-tenth of a cent, or Vow of a dollar, written as $0.001. Property taxes often are expressed in mills.
mile
A linear measure of 5,280 feet.
metes and bounds
Land description by measurements and boundaries.
maker
The person who signs a negotiable instrument.
menace
A threat of force that makes a contract voidable.
Member Appraisal Institute (MAI)
A professional membership designation of the Appraisal Institute.
megalopolis
An urban sprawl.
mediation
A nonjudicial process to resolve disputes where a third party acts as a facilitator to aid the parties in reaching an agreement.
mechanic’s lien
A specific lien by a contractor, subcontractor, material man, or laborer for work performed or material supplied for a property but not paid for.
master plan
Comprehensive land use plan.
mansard roof
A French-style roof with a steep lower slope and a very gentle upper slope.
master lease
The original lease between lessor and lessee when the lessee later subleases.
markup
The percentage added to cost to determine selling price.
marketable title
A title that is clear of objectionable liens and encumbrances; a merchantable title.
market value
The price a willing, informed buyer would pay to a willing, informed seller, allowing a reasonable sale time.
margin of security
The lender’s security that is the difference between the mortgage amount and the value of the property.
market price
The price actually paid.
market comparison approach
An appraisal method wherein value is based on sales of comparable properties.
margin
The difference between the index rate and the rate of interest charged on an adjustable-rate mortgage.
