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Law Office of William F. Scofield
William F. Scofield, LLC Attorney at Law
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Glossary
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 all
 
Maintenance Fee
As applied to cooperatives, condominiums and planned unit developments, the amount charged each unit owner to maintain the common area. Usually a monthly fee paid as part of the budget.
 
Managing Agent
The entity as applied to cooperatives, condominiums and planned unit developments, which runs the operations and finances of the development as a whole.
 
Margin
The percentage amount added to the Index value to establish the new interest rate at each adjustment of an adjustable rate mortgage. The margin remains constant over the life of the loan.
 
Market Value
The highest price that a motivated buyer would pay, and the lowest price that a motivated seller would accept on a property. Market value is not necessarily the price that a property could actually be sold for at a given time. Also called Fair Market Value.
 
Maturity
The date on which the remaining balance of a loan financial instrument becomes due and payable. The date the mortgage must be paid off.
 
Mechanic’s Lien
A formal recorded claim against a property for work and materials for construction or repair of a property. Mechanic’s liens attach to both the building(s) and land.
 
Modification
A change in the terms of a mortgage without refinancing. Usually, a reduction in the interest rate or other change that is beneficial to the borrower.
 
Modification Extension Consolidation Agreement (MECA)
See Assignment of Mortgage
 
Mortgage
A formal document pledging a property as security for a loan. Not used in all states—see Deed of Trust.
 
Mortgage Banker
A company or individual that originates and funds mortgages, which are then sold in the secondary market.
 
Mortgage Broker
An independent company or individual, that originates—but does not fund—mortgages. A mortgage broker arranges mortgages with a variety of institutions with which they have pre-established relationships.
 
Mortgage Insurance (MI)
Insurance purchased by the borrower to partially protect the lender against loss if the borrower defaults. Normally required for loans with an LTV greater than 80% (20% down). FHA loans and most first-buyer programs require mortgage insurance regardless of the LTV.Insurance purchased for non-FHA loans is commonly called PMI (Private Mortgage Insurance). Some large lenders self-insure and do not require the buyer to purchase PMI, however, the interest rate may be slightly higher.Normally, mortgage insurance may be dropped when the LTV drops below 80%.
 
Mortgage Insurance Premium (MIP)
The premium paid by a borrower either to FHA (FHA/VA loans) or to a private company for non-government insured loans.
 
Mortgage Life/Disability Insurance
A form of insurance where the insurance amount decreases in lock step with the remaining loan balance. It is not usually required by lenders and is relatively expensive.
 
Mortgage Policy
A title insurance policy insuring a mortgagee or beneficiary under a deed of trust, against loss caused by invalid title in the borrower, or loss of priority of the mortgage or deed of trust.
 
Mortgagee
The lender in a mortgage agreement.
 
Mortgagee Clause
A clause in an insurance policy, listing the priority of claims in the event of destruction of the property insured. Generally, a mortgagee, or beneficiary under a deed of trust, is the party appearing in the clause, being paid to the amount owing under the mortgage or deed of trust before the owner is paid.
 
Mortgagor
The borrower in a mortgage agreement.
 
These definitions are provided for informational purposes only. William Scofield, LLC shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
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