A
structure that has been partially or entirely constructed at another
location and moved onto the property (on a permanent foundation). A
manufactured home may or may not be a mobile home.
Margin
The
number of percentage points the lender adds to or subtracts from the
index rate to determine the interest rate adjustments. The margin is
constant throughout the life of the mortgage and is specified in the
promissory note.
Marketable Title
A title that a reasonable buyer would accept because it appears to lack any defect and covers the entire property that the seller has purported to sell.
Maturity date
The day on which the outstanding principal, interest and fees on a loan must all be repaid.
Mechanic's Lien
A statutory lien that secures the payment for labor or materials supplied in improving, repairing, or maintaining real or personal property.
Merged Credit Report
A Credit Report that contains information from at least three credit bureaus. Any duplicate entries are combined to provide a concise summary of outstanding liabilities and credit history.
Mixed Use Property
Commercial and Residential use at the same time
Modification
A process where the terms of payment are modified outside the original terms of the contract agreed to by the lender and borrower.
Money Market Account
An Interest-bearing account at a bank or other financial institution. Such an account, usually pays interest competitive with money-market funds but allows a limited number of transactions per month.
Mobile home
A type of residence that’s built upon a wheeled chassis and can be transported from site to site.
Monthly Fixed Installment
The portion of the total monthly payment that is applied toward principal and interest. When a Mortgage is negatively amortized, the monthly fixed installment does not include any amount for principal reduction and does not cover all the interest. The loan balance therefore increases instead of decreasing.
Monthly Housing Expense
The sum of Homeowner's monthly mortgage principal and interest payments, hazard insurance premiums, property taxes, and homeowner's association fees, plus monthly debt service.
Modular home
A factory-built home that’s erected on-site, with the appearance and characteristics of a site-built residence.
Mortgage
A
legal document giving a lender a lien on real estate to secure
repayment of a loan. Mortgage loans generally run from 10 to 30 years,
after which the loan is required to be paid off. Also called deed of
trust and/or security deed.
Mortgage Banker
An individual or organization that originates real estate loans for a fee, resells them to other parties, and services the monthly payments.
Mortgage Broker
An Individual or Organization that markets mortgage loans and brings lenders and borrowers together. A Mortgage Broker does not originate or service mortgage loans.
Mortgage insurance
For
conventional loans, insurance that protects the lender if you default
on your loan. If your down payment is less than 20%, most lenders will
require you to pay mortgage insurance. Also called private mortgage
insurance (PMI).
Mortgage Insurance Premium (MIP)
An insurance policy used in Fair Housing Act (FHA) loans if your down payment is less than 20 percent. The FHA assesses either an "upfront" MIP at the time of closing, or an Annual MIP that is calculated every year and paid in 12 installments.
Mortgage Life Insurance
A form of Insurance specifically designed to protect a repayment mortgage. If the policyholder were to die while the mortgage life insurance was in force, the policy would pay out a capital sum that will be just sufficient to repay the outstanding Mortgage.
Mortgage Disclosure Improvement Act (MDIA) 2008
Enacted to Insure that consumers receive good faith estimates of Truth-In-Lending-Act (TILA) disclosures at the beginning of the application process and to provide sufficient time for consumers to review the disclosures before consummation can take place.
Mortgage Loan
A loan secured by a mortgage or deed of trust on real property.
Mortgage Note
A note evidencing a loan for for which real property has been offered as security.
Mortgage type
Generally,
there are three basic mortgage programs: Federal Housing Administration
(FHA) loans, Department of Veterans Affairs (VA) loans and conventional
mortgage loans. VA loans are only offered to qualifying veterans and
surviving spouses, while FHA loans are available to all qualifying
borrowers. Both VA and FHA loans are guaranteed/insured by the federal
government. This insurance protects the lender (not the borrower) should
the borrower default and the lender sustains a loss. Conventional loans
are available to all qualifying borrowers and are not insured or
guaranteed by the federal government.
Mortgage Rate
The rate of interest charged by a mortgage lender.
Multi-family residence (2 to 4 units)
A residential property with 2 to 4 individual housing units (duplex, triplex or quadplex).
Multi-family Mortgage
A Residential Mortgage on a dwelling that is designed to house more than four families, such as an apartment complex.
Multiple Listing Service (MLS)
A listing stating the agent will allow other agents to try to sell the property. Under this agreement, the original agent gives the selling agent a percentage of the commission or some other stipulated amount.
Management fee
A service fee or charge paid to an investment manager.
Market capitalization (Cap)
The market value of a company. Market capitalization can
be determined by multiplying the number of outstanding shares of a
company’s stock by the stock’s current market price per share.
Market risk
The possibility that the value of an investment will fall because of a general decline in the financial markets.
Markit CDX Emerging Markets 5-year Total Return Index
An index comprising credit default swaps (CDS) on
sovereign debt from three regions: 1) Latin America; 2) Eastern Europe,
the Middle East and Africa; and 3) Asia. The index measures the
performance of and replicates the behavior of a fictitious portfolio
that buys one CDX Emerging Markets 5-year Index contract and invests the
remaining notional principal amount in money market instruments. The
portfolio is always invested in the most recently published (on-the-run)
CDX Emerging Markets 5-year series that it tracks. (Whenever a new CDX
Emerging Markets 5-year series is issued, due to a regular index roll
[every March and September] or due to a credit event in the current
series, the CDS position in the reference portfolio is rolled into the
on-the-run/reduced index position.)
Markit CDX North American High Yield 5-year Total Return Index (CDX NA HY)
An equally weighted index that measures the performance
of 100 liquid non-investment-grade reference entities (those given a
long-term credit rating by Fitch, Moody’s and/or S&P that is lower
than BBB-/Baa3) domiciled in North America that trade in the credit
default swaps (CDS) market. The index measures the performance of and
replicates the behavior of a fictitious portfolio that buys one CDX NA
HY 5-year Index contract and invests the remaining notional principal
amount in money market instruments. The portfolio is always invested in
the most recently published (on-the-run) CDX NA HY 5-year series that it
tracks. (Whenever a new CDX NA HY 5-year series is issued, due to a
regular index roll [every March and September] or due to a credit event
in the current series, the CDS position in the reference portfolio is
rolled into the on-the-run/reduced index position.)
Maturity date
The date when the principal amount of a loan, bond or any other debt becomes due and is to be paid in full.
Mid capitalization (Cap)
A reference to either a medium-sized company stock or an investment fund that invests in the stocks of medium-sized companies.
Mid-cap fund
A fund that invests primarily in mid-cap stocks.
Mid-cap stocks
Stocks of companies with a medium market capitalization.
Mid caps are often considered to offer more growth potential than larger
caps, but less than small caps. They also are considered to offer less
risk than small caps, but more than large caps.
Money market fund
A mutual fund that invests in short-term, high-grade
fixed-income securities. Money market funds seek the highest level of
income consistent with preserving capital. In other words, they try to
maintain a stable share price.
Morningstar
A leading mutual fund research and tracking firm that
categorizes funds by objective and size, then ranks fund performance
within those categories.
Morningstar (MStar) Lifetime Allocation Indexes
A series of unmanaged, multi-asset-class indexes designed
to benchmark target-date investment products. Each index is available
in three risk profiles: aggressive, moderate and conservative. The index
asset allocations adjust over time, reducing equity exposure and
shifting toward traditional income-producing investments. The strategic
asset allocation of the indexes is based on the Lifetime Asset
Allocation methodology developed by Ibbotson Associates, a Morningstar
company.
Morningstar (MStar) Lifetime Moderate Indexes
Each of the Nationwide Target Destination Funds has an
individual Morningstar index to go with it that matches the year number
in the fund name. The Nationwide Destination 2010 Fund uses the
Morningstar® (Mstar) Lifetime Moderate 2010 Index. The other
Target Destination Funds follow suit, changing only the number in the
index name (2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060).
The Morningstar Lifetime Allocation Indexes definition is used as an
overarching benchmark index description; an individual market index
definition is not used for each fund.
Morningstar (MStar) Lifetime Target Risk Index
One of a series of unmanaged indexes that cover a global
set of stocks, bonds, and commodities and are designed to benchmark
asset allocation products across a risk spectrum ranging from
conservative to aggressive. Asset-class weights are adjusted annually
and rebalanced quarterly, based on an asset allocation methodology from
Ibbotson Associates, a Morningstar company.
MPT Statistics (Modern Portfolio Theory)
Alpha, beta, and R-squared are modern-portfolio-theory
measures of a fund's relative risk, based on a least-squares regression
of a fund's excess returns on the excess returns of a market index.
Standard deviation is not considered an MPT statistic because it is not
generated through the same formula or mathematical analysis as the other
three statistics.
MSCI ACWI
An unmanaged, free float-adjusted, market
capitalization-weighted index that is designed to measure the
performance of large-cap and mid-cap stocks in global developed and
emerging markets as determined by MSCI.
MSCI ACWI ex USA Index
An unmanaged, market capitalization-weighted index that
is designed to measure the performance of global stocks in developed and
emerging markets, excluding U.S.-based companies.
MSCI ACWI
An unmanaged, free float-adjusted, market
capitalization-weighted index that is designed to measure the
performance of large-cap and mid-cap stocks in global developed and
emerging markets as determined by MSCI.
MSCI ACWI ex USA Growth
An unmanaged, free float-adjusted, market
capitalization-weighted index that is designed to measure the
performance of large-cap and mid-cap growth stocks in global developed
and emerging markets as determined by MSCI; excludes the United States.
MSCI EAFE Index
An unmanaged, free float-adjusted, market
capitalization-weighted index. The index is designed to measure the
performance of the stocks in developed markets outside the United States
and Canada.
MSCI EAFE Value Index
An unmanaged, free float-adjusted, market
capitalization-weighted index that is designed to measure the
performance of large-cap and mid-cap stocks in developed markets as
determined by MSCI; excludes the United States and Canada.
MSCI Emerging Markets Index
An unmanaged, free float-adjusted, market
capitalization-weighted index that is designed to measure the
performance of large-cap and mid-cap stocks in emerging-country markets
as determined by MSCI.
MSCI Emerging Markets Net Total Return Index
An unmanaged, free float-adjusted, market
capitalization-weighted index that is designed to measure the
performance of large-cap and mid-cap stocks in emerging-country markets
as determined by MSCI. The net total return component measures whole
market performance, including price performance and income from dividend
payments, after the deduction of withholding taxes.
MSCI World IndexSM
An unmanaged, free float-adjusted, market
capitalization-weighted index that is designed to measure the
performance of large-cap and mid-cap stocks in global developed markets
as determined by MSCI.
MSCI World IndexSM Free
An unmanaged, free float-adjusted, market
capitalization-weighted index that is designed to measure the
performance of global developed-market equities. The “Free” suffix
denotes an index with a somewhat different history but the same
constituents and performance in relation to its counterpart without the
suffix.
Mutual funds
An investment company registered with the SEC that buys a
portfolio of securities selected by a professional investment adviser.
Mutual funds can have actively-managed portfolios, where a professional
investment adviser creates a unique mix of investments to meet a
particular investment objective. They can also have passively-managed
portfolios, in which the adviser tries to match the performance of a
selected benchmark or index.
Acronyms
MAA
Mortgage Action Alliance
MAR
Master Appraisal Report
MARS
(Mortage assistance relief services rule)
MBA
Mortgage Bankers Association
MBS
(mortgage backed security) these are investment instruments that are bundled by fannie freddie and ginnie mae for sale of wall street
MCAW
Mortgage Credit Analysis Worksheet
FHA underwriting loan transmittal summary
MCC
Master Conditional Commitment OR Mortgage Credit Certificate
MDIA
(Mortgage Disclosure Inprovement Act)
MERS
(Mortage electronic registration system)
MRB
Mortgage Revenue Bond
MSA
Mortgage Servicing Assets or metropolitan Statistical Area
MSN
Mortgage servicing News
MSR
Mortgage Servicing Rights
MFR
Multi-Family Residence
MLO
(Mortgage Loan Originator)
MMI
(Monthly Mortgage Insurance) montly insurance charged on an FHA loan
MSA
(Marketing servicing agreements)
MI
Mortgage Insurance
MTA
12 month treasury average Index
MTG
Mortgage
MIC
Mortgage Insurance Certificate
MIN
Mortgage Identification Number
MIP
Mortgage Insurance Premium
MISMO
Mortgage Industry Standards Maintenance Organization