Definitions (M)

MANAGING BROKER
A person licensed by the state as a broker who is also the broker of record for a real estate sales office. This person manages the daily operations of a real estate sales office.

MANUFACTURED HOME
Factory-built or prefabricated housing, including mobile homes.
The difference between the interest rate and the index on an adjustable rate mortgage. The margin remains stable over the life of the loan. It is the index which moves up and down.

MARKETING PERIOD
The period of time in which the transferee may market his or her property (typically 45, 60, or 90 days), as directed by the third-party company’s contract with the employer.

MARKET PRICE
The price people agree to pay for something at a given moment at a given place.

MARKET RATE
Estimated average interest rate being charged by lenders for conventional loans.

MARKET VALUE
The most probable price that a ready, willing, and able buyer would pay and a willing seller would accept, assuming each is fully informed and under no pressure to act. The market value may be different from the price for which a property can actually be sold at a given time (market price).

MATURITY DATE
The termination or due date by which a loan’s final payment must be paid in full. For a balloon home equity line of credit, a fully amortized home equity loan (one that features full principal-and-interest payments to pay off the balance during the loan term), or a balloon home equity loan, the maturity date is the point at which outstanding balance becomes due in full.

MATURITY
The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.

MECHANIC'S LIEN
A claim created by law for the purpose of securing priority of payment for work performed and materials furnished by a mechanic or other person for the construction or repair of a building; such claim attaches to the land as well as buildings and improvements erected thereon.

MERGED CREDIT REPORT
A credit report which reports the raw data pulled from two or more of the major credit repositories. Contrast with a Residential Mortgage Credit Report (RMCR) or a standard factual credit report.

METES AND BOUNDS DESCRIPTION
A legal description based on footage and direction prepared through a survey of the property.

MINOR
A person of either sex who is not of legal age.

MONUMENTS
Objects or markers used to fix or establish a property boundary.

MODERATE INCOME
The greater of: (1) 115 percent of the U.S. median family income, (2) the average of the state‐wide and state non‐metro median family income, (3) 115/80ths of the area low‐income limit adjusted for household size for the county or MSA where the property is, or will be, located.

MOBILE HOME
A factory-assembled residence consisting of one or more modules and a chassis and wheels that are an integral part of the structure and need not be removed in order to make the module(s) occupiable.

MODIFICATION
Occasionally, a lender will agree to modify the terms of your mortgage without requiring you t refinance. If any changes are made, it is called a modification.

MODULAR HOUSE
A factory-assembled residence built in units or sections, transported to a permanent site, and erected on a foundation. Excludes mobile homes.

MONTHLY PAYMENT
Usually, the amount of PITI (principal, interest, taxes, and insurance) paid each month on a mortgage loan.

MORTGAGE
A legal document that pledges a property to the lender as security for payment of a debt. Instead of mortgages, some states use First Trust Deeds.

MORTGAGE BANKER
For a more complete discussion of mortgage banker, see "Types of Lenders." A mortgage banker is generally assumed to originate and fund their own loans, which are then sold on the secondary market, usually to Fannie Mae, Freddie Mac, or Ginnie Mae. However, firms rather loosely apply this term to themselves, whether they are true mortgage bankers or simply mortgage brokers or correspondents.

MORTGAGE BROKER
A mortgage company that originates loans, then places those loans with a variety of other lending institutions with whom they usually have pre-established relationships.

MORTGAGE COMMITMENT
An agreement between lender and borrower detailing the terms of a mortgage loan such as interest rate, loan type, term, and amount.

MORTGAGEE
The lender in a mortgage agreement.

MORTGAGE INSURANCE (MI)
Insurance that covers the lender against some of the losses incurred as a result of a default on a home loan. Often mistakenly referred to as PMI, which is actually the name of one of the larger mortgage insurers. Mortgage insurance is usually required in one form or another on all loans that have a loan-to-value higher than eighty percent. Mortgages above 80% LTV that call themselves "No MI" are usually a made at a higher interest rate. Instead of the borrower paying the mortgage insurance premiums directly, they pay a higher interest rate to the lender, which then pays the mortgage insurance themselves. Also, FHA loans and certain first-time homebuyer programs require mortgage insurance regardless of the loan-to-value.

MORTGAGE INSURANCE PREMIUM (MIP)
The amount paid by a mortgagor for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (MI) company.

MORTGAGE LIFE AND DISABILITY INSURANCE
A type of term life insurance often bought by borrowers. The amount of coverage decreases as the principal balance declines. Some policies also cover the borrower in the event of disability. In the event that the borrower dies while the policy is in force, the debt is automatically satisfied by insurance proceeds. In the case of disability insurance, the insurance will make the mortgage payment for a specified amount of time during the disability. Be careful to read the terms of coverage, however, because often the coverage does not start immediately upon the disability, but after a specified period, sometime forty-five days.

MORTGAGE NOTE
A written agreement to pay a sum of money at a stated interest rate during a specified term. The note contains a complete description of the conditions under which the loan is to be repaid and when it is due.

MORTGAGEE
The lender on a mortgage transaction.

MORTGAGOR
The borrower in a mortgage agreement.
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Mortgage Loan Originator
According to federal regulations, a Mortgage Loan Originator (MLO) is defined as anyone who takes a mortgage loan application and presents or negotiates the terms of a residential mortgage loan for compensation or gain.

MORTGAGE LOAN SERVICING COMPANY
A company that collects monthly mortgage payments from borrowers.

MULTI-DWELLING UNITS
Properties that provide separate housing units for more than one family, although they secure only a single mortgage.

MULTIPLE LISTING SERVICE (MLS)
A service that compiles available properties for sale by member brokers.

MULTIPLE OFFERS
More than one buyers broker present an offer on one property where the offers are negotiated at the same time.