Vocabulary Lesson 6
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….
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Look for lesson 7 in the coming weeks!
Posted on December 14, 2012, in Title and tagged Adjustable Rate Mortgage Loan, ALTA, American Land Title Association, ARM, CC&R's, Condominium, Congress, Covenants Conditions and Restrictions, Fannie Mae, Federal Home Loan Mortgage Corp, Federal Housing Administration Guarantee, Federal National Mortgage Association, FHA, FHLMC, FNMA, Foreclosure, Fort Myers, Freddie Mac, HUD, Jennifer Ferri, Lender, Loan, Planned Unit Development, PMI, Private Mortgage Insurance, Property Guiding, PUD, Real Estate Investment Trust, Real Estate Mortgage Investment Conduit, Real Estate Owned, REIT, REMIC, REO, Stockholder, SWFL Real Estate, Title Insurance, Title Junction, Title Work, Townhome. Bookmark the permalink. Leave a comment.