Vocabulary Lesson 6

vocabulary property guidingABC – XYZ…and everything in between!

1. ARM (Adjustable Rate Mortgage Loan)

– A residential mortgage that has an interest rate that is subject to change. Adjustment times are agreed upon at the inception of the loan.

2. ALTA (American Land Title Association)

– A national association of title insurance companies, abstractors and attorneys specializing in real property law. Its headquarters are in Washington, D.C.

3. CC&R’s (Covenants, Conditions and Restrictions)

– A common term used to designate conditions and restrictions on the use of land. May include penalties for failure to comply. Commonly used by land sub-dividers on newly platted areas.

4. CIC (Common Interest Community)

– Ownership characterized by mutual ownership of common areas, either jointly or through membership in an association, e.g., condominiums, planned unit developments, and townhomes.

5. FNMA (Fannie Mae – Federal National Mortgage Association)

– A private corporation, federally chartered to provide financial products and services that increase the availability and affordability of housing by purchasing mortgage loans.

6. FHA (Federal Housing Administration) Guarantee

– An insurance contract in which HUD, through FHA, insures that the named lender will recover a specific percentage of the loan amount from the insurer (FHA) in the event that the loan goes bad.

7. FHLMC (Freddie Mac – Federal Home Loan Mortgage Corp)

– A stockholder-owned corporation chartered by Congress that purchases mortgage loans.

8. PMI (Private Mortgage Insurance)

– An insurance contract which insures that the named lender will recover a specific percentage of the loan amount from the insurer in the event the loan goes bad. Many lenders require this on higher percentage loans.

9. REIT (Real Estate Investment Trust)

– A product of federal tax legislation formed as a business trust under a special state REIT statute or a s a corporation for the purpose of investing in real estate or mortgages on real estate.

10. REMIC (Real Estate Mortgage Investment Conduit)

– A product of 1986 federal tax legislation in which a business entity, such as a corporation, partnership, or trust in which substantially all of the assets consist of qualified mortgages and permitted investments, elects to be treated as a REMIC. Qualification avoids treatment as a corporation for tax purposes.

11. REO (Real Estate Owned)

– A class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction.

Its as easy as 1 – 2 – 3….

Call us @ 239-415-6574 or email us @ jferri@title-junction.com for any of your title needs or questions!!

Look for lesson 7 in the coming weeks!

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Posted on December 14, 2012, in Title and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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