| Major Metropolitan Area |
Large population nucleus,
together with adjacent communities having a high degree of social and
economic integration with the core. Major metropolitan areas comprise
one or more entire counties, except in New England, where cities and
towns are the basic geographic units.
|
| Manufactured (and Factory-Built) Housing Unit
|
Single-family
residential unit that is factory-constructed in sections, transported to
the site (usually by truck), and joined together on a prebuilt
foundation.
|
| Margin |
Amount added to an index value to create the mortgage interest
rate for an ARM/GPARM.
|
| Market Value |
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.
|
| MARKETABILITY |
The probability of selling property at a specific time, price and terms.
|
| Master Association |
Owner's association in a large condominium or 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.
|
| Maximum Financing |
Any mortgage amount that is within five (5) percent
of the highest loan-to-value (LTV) ratio allowed for a specific product.
Thus, maximum financing on a fixed-rate mortgage would be 90%, or
higher, since 95% is the maximum allowable LTV ratio for that product.
|
| Mechanic's Lien |
A right by a contractor, sub-contractor or material
supplier to place a lien on a borrower’s property for payment of work
performed or material delivered on the property.
|
| MERGED CREDIT PROFILE (MPR)
|
A report combining credit information from as many as 3 different credit
bureaus.
|
| Metes and Bounds
|
Description in a deed of land location in which the
boundaries are defined by directions and distances.
|
| MI Company |
Private or state mortgage insurance company that insures
against loss in the event a mortgagor defaults on a conventional
mortgage.
|
| Minimum Lot Zoning |
Type of zoning that regulates the smallest lot size
permitted per building.
|
| MIXED-USE PROPERTY
|
A property in which a portion is used for commercial or retail purposes
and the other portion is used for residential purposes. A property can
also be considered mixed use if different combinations of uses are
present such as commercial/industrial or residential/industrial. For
example, a multi-unit dwelling with the front unit used as a commercial
store and the back unit used as a dwelling.
|
| Mobile Home |
Factory-assembled residence consisting of one or more
modules, in which the chassis and wheels are an integral part of the
structure, and can be readied for occupancy without removing the chassis
and/or wheels.
|
| Modification |
Act of changing any of the terms of the mortgage.
|
| MODIFICATION AGREEMENT |
In the mortgage lending industry, a written directive to the title
company to correct a typographical error on instructions to title.
|
| Modular House |
Factory-assembled residence built in units or sections,
transported to a permanent site and erected on a foundation. The term
excludes mobile homes.
|
| Monthly Operating Income |
Income from the rental of an investment
property that is determined by reducing the annual effective gross
income for the property by the annual operating expenses and dividing
the result by 12. We use this in calculating whether a borrower who will
occupy one unit of a two (2) to four (4)-family investment property as
his or her principal residence qualifies for a mortgage.
|
| Mortgage |
Collectively, the security instrument, the Note, the title
evidence, and all other documents and papers that evidence the debt.
|
| MORTGAGE BANKER |
A non-depository financial institution that specializes in originating
and servicing loans. They generally sell their loans to investors, but
may continue to service them.
|
| Mortgage Broker |
Firm or individual who brings the borrower and lender
together, receiving a commission if a sale results. A mortgage broker
does not retain servicing.
|
| Mortgage Credit Certificate |
Credit given by a government entity
through tax rebates. These payments can be considered income if verified
in writing using the Mortgage Credit Certificate Commitment. The amount
of the credit is added to the gross income.
|
| Mortgage Credit Life Insurance |
Term life insurance often bought by
mortgagors. The amount of coverage decreases as the mortgage balance
declines. In the event the borrower dies while the policy is in force,
the debt is automatically satisfied by insurance proceeds.
|
| Mortgage Insurance |
See Private Mortgage Insurance.
|
| MORTGAGE LATE |
More than 1 payment due at the same time the most recent payment is due.
|
| Mortgage Payment Ratio |
Total mortgage payment divided by the effective
gross income.
|
| Mortgagee |
Lender in a mortgage transaction.
|
| Mortgagor |
Borrower or owner in a mortgage transaction who pledges
property as a security for a debt.
|
| Multi-dwelling unit condominium
|
| Condominium project that permits an
individual to hold title to more than one dwelling unit, with ownership
of all of his or her owned units evidenced by a single deed and
mortgage. |
