G



Glossary



General Contractor
Someone who contracts for the completion of an estate project, including purchasing all materials, hiring and paying subcontractors, and coordinating all the work.


Good faith estimate (GFE)

An itemized, detailed list of certain estimated costs associated with a home loan that the lender is required to provide to the borrower within 3 business days of the application.



General Warranty Deed

A seller promises that there are no defects in the title that arose or were created while the seller owned the property or while anyone prior to the seller owned the property.



Gift Letter

A letter to the lender from the donor stating a gift of money has been made to the buyer to purchase a specific property. The relationship of the donor and donee is stated, as well as the amount of the gift.



Government loan / Government Mortgage

A loan that is insured by the Federal Housing Administration (FHA), guaranteed by the Department of Veterans Affairs (VA) or guaranteed by the Rural Housing Service (RHS). The insurance protects the lender (not the borrower) if a borrower defaults on the loan. This insurance enables a lender to provide loan options and benefits often not available through conventional financing.



Government National Mortgage Association (GNMA or Ginnie Mae)

A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Created by Congress on September 1, 1968, GNMA assumed responsibility for the special assistance loan programs formerly administered by Fannie Mae.


Graduated Payment Mortgage (GPM)

A mortgage whose initial payments are lower than its later payments. The payments are intended to gradually increase, as the borrower's income increases over time.


Grace Period

An extra period of time allowed for taking same required action (such as making payment) without incurring the usual penalty for being late. Article 9 of the Uniform Commercial Code (UCC) provides for a 20-day grace period after the collateral is received. During that time a purchase-money security interest must be perfected to have priority over any conflicting security interests.


Gramm-Leach-Bliley Act (GLB) 1999

A Federal Statute that repealed both parts of the Glass-Stegall Act prohibiting combinations among banking, securities, and insurance companies, as well as related conflict-of-interest provisions for such companies officers, directors, and employees. The Act also regulates the collection, disclosure, use, and protection of consumers nonpublic personal information.


Gross Monthly Income

The total amount of a person's income before taxes.


Ground Rent

Rent paid by a tenant under a long-term lease for the use of undeveloped land, usually for the construction of a commercial building.


Growing-Equity Mortgage (GEM)

A Mortgage that is fully amortized over a significantly shorter term than the traditional 30-year mortgage, with increasing payments each year.


Glide path

The shift over time in a target date fund’s asset allocation mix from a focus on growth to a focus on income.



Global fund

A fund that invests primarily in securities anywhere in the world, including the United States.



Government securities

Any debt obligations issued by a government or its agencies, such as U.S. Treasury bills.



Group annuity contract

An annuity contract between an insurance company and an owner for the benefit of a designated group, such as retirement plan participants.



Growth and income fund

A fund that has a dual strategy of growth or capital appreciation, as well as current income generation through dividends or interest payments.



Growth fund

A fund that invests primarily in the stocks of companies with above-average risk in return for potentially above-average gains. These companies often pay little or no dividends, and their stock prices tend to have the most ups and downs from day to day.



Guarantee

Assumption of the liability of another's debts in the event of a default.



Guarantee Mortgage

A Mortgage that is guaranteed by a third party.



Guaranty

A promise to answer for the payment of some debt, or the performance of some duty, in case of the failure of another who is liable in the first instance.



Guaranteed interest account

An account within a fixed or variable annuity that is guaranteed by the insurance company to earn at least a minimum rate of interest while invested in the contract.



Guaranteed investment contract

A contract issued by an insurance company that guarantees a specific rate of return on an investment over a certain time period.



Guaranteed lifetime withdrawal benefit

A feature sometimes offered in an annuity contract where the insurance company lets you withdraw a specified amount from an account. This benefit can apply to your entire life, the joint lives of you and another individuals (such as your spouse) or for a specified period of time. Withdrawals can be made even if the account balance is reduced to zero. This benefit it also known as a guaranteed minimum withdrawal benefit.




Acronyms



GAAP
Generally Accepted Accounting Principles



GDP
Gross Domestic Product



GFE
(Good faith estimate) is a document that the lender is required to give a prospect borrower when they apply for a loan. The GFE is an estimate of all closing costs and fees required for the proposed mortgage loan.


GLBA
(Gramm- leach Bliley Act)
requires disclosure of information sharing policies


GNMA
Ginnie Mae, government national mortgage association(the fannie and freddy of government lending)


GPM
(Graduated Payment Mortgage)
With this type of mortgage the payment starts low and rises over time



GSE
(Government sponsored enterprise) us a financial service corporation used by the U.S congress (Fannie and Freddy Mac)



GUS
USDA Guaranteed Underwriting System



GTM
Government Technical Monitor



GTR
Government Technical Representative