M Terms

Question 1

Mortgage Guaranty Insurance Corporation (MGIC)

Answer 1

A private mortgage insurance (PMI) carrier.

Question 2

mutual savings bank

Answer 2

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.

Question 3

mutual mortgage insurance (MMI)

Answer 3

FHA insurance that protects the lender against buyer default.

Question 4

mutual mistake

Answer 4

The mistake of both parties to an agreement. A mutual mistake as to fact allows a mistaken party to void the agreement.

Question 5

mutual consent

Answer 5

The meeting of minds required for a binding contract.

Question 6

multiple listing service (MLS)

Answer 6

An organization of member real estate professionals in which listing agreements are shared to increase the chances of a sale
muniment of title Deeds.

Question 7

mortgage insurance premium (MIP)

Answer 7

FHA insurance.

Question 8

multiple listing

Answer 8

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.

Question 9

mudsill

Answer 9

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.

Question 10

mortgagor

Answer 10

The owner or the buyer of property who gives the mortgage.

Question 11

mortgagee

Answer 11

One who receives the mortgage; a lender or a seller (under a purchase money mortgage).

Question 12

mortgage loan correspondent

Answer 12

A firm that arranges the sale of existing loans in the secondary mortgage market.

Question 13

mortgage loan originator (MLO)

Answer 13

Subject to minimum standards of licensing and registration.

Question 14

mortgage note

Answer 14

The note that reflects the promise to pay the mortgage debt. The mortgage is security for the note.

Question 15

Mortgage Electronic Registration System (MERS)

Answer 15

A private national mortgage database in which MERS may hold a mortgage note.

Question 16

mortgage broker

Answer 16

Broker who arranges a loan between a borrower and a lender.

Question 17

mortgage banker

Answer 17

Mortgage company that originates loans that are then sold in secondary mortgage market.

Question 18

mortgage

Answer 18

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.

Question 19

monument

Answer 19

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).

Question 20

monetary policy

Answer 20

Policy of Federal Reserve to adjust availability and cost of funds.

Question 21

mitigation of damages

Answer 21

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.

Question 22

misrepresentation

Answer 22

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.

Question 23

minor

Answer 23

Any person younger than contractual age.

Question 24

mineral, oil, and gas rights

Answer 24

The absolute right to extract minerals, oil, and gas (a real property interest).

Question 25

mineral, oil, and gas lease

Answer 25

Lease rights to extract minerals, oil, and gas for the lease period (a personal property interest).

Question 26

mill

Answer 26

One-tenth of a cent, or Vow of a dollar, written as $0.001. Property taxes often are expressed in mills.

Question 27

mile

Answer 27

A linear measure of 5,280 feet.

Question 28

metes and bounds

Answer 28

Land description by measurements and boundaries.

Question 29

maker

Answer 29

The person who signs a negotiable instrument.

Question 30

menace

Answer 30

A threat of force that makes a contract voidable.

Question 31

Member Appraisal Institute (MAI)

Answer 31

A professional membership designation of the Appraisal Institute.

Question 32

megalopolis

Answer 32

An urban sprawl.

Question 33

mediation

Answer 33

A nonjudicial process to resolve disputes where a third party acts as a facilitator to aid the parties in reaching an agreement.

Question 34

mechanic’s lien

Answer 34

A specific lien by a contractor, subcontractor, material man, or laborer for work performed or material supplied for a property but not paid for.

Question 35

master plan

Answer 35

Comprehensive land use plan.

Question 36

mansard roof

Answer 36

A French-style roof with a steep lower slope and a very gentle upper slope.

Question 37

master lease

Answer 37

The original lease between lessor and lessee when the lessee later subleases.

Question 38

markup

Answer 38

The percentage added to cost to determine selling price.

Question 39

marketable title

Answer 39

A title that is clear of objectionable liens and encumbrances; a merchantable title.

Question 40

market value

Answer 40

The price a willing, informed buyer would pay to a willing, informed seller, allowing a reasonable sale time.

Question 41

margin of security

Answer 41

The lender’s security that is the difference between the mortgage amount and the value of the property.

Question 42

market price

Answer 42

The price actually paid.

Question 43

market comparison approach

Answer 43

An appraisal method wherein value is based on sales of comparable properties.

Question 44

margin

Answer 44

The difference between the index rate and the rate of interest charged on an adjustable-rate mortgage.