Arbor Financial Group Marketing Engines, Inc.

Glossary of Terms

Mortgage. Real Estate & Insurance

M

Maintenance
Maintenance is the monthly charge paid by the co-operative tenant/shareholders to cover the building's operative costs, real estate taxes and debt service on the building's underlying mortgage.
Major Metropolitan Area
Large population nucleus, together with adjacent communities having a high degree of social and economic integration with the core. Major metropolitan areas comprise one or more entire counties, except in New England, where cities and towns are the basic geographic units.
Manufactured (and Factory-Built) Housing Unit
Single-family residential unit that is factory-constructed in sections, transported to the site (usually by truck), and joined together on a prebuilt foundation.
Margin
Amount added to an index value to create the mortgage interest rate for an ARM/GPARM.
Market Value
The Market Value is the most probable price that a property should bring if exposed for sale in the open market for a reasonable period of time, with both the buyer and seller aware of current market conditions, neither being under duress. It's the Highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept.
MARKETABILITY
The probability of selling property at a specific time, price and terms.
Master Association
Owner's association in a large condominium or PUD project that is made up of representatives from associations covering specific areas within the project. In effect, it is a second level association that handles matters affecting the entire development, while the first level associations handle matters affecting their particular portions of the project.
Maximum Financing
Any mortgage amount that is within five (5) percent of the highest loan-to-value (LTV) ratio allowed for a specific product. Thus, maximum financing on a fixed-rate mortgage would be 90%, or higher, since 95% is the maximum allowable LTV ratio for that product.
Mechanic's Lien
A right by a contractor, sub-contractor or material supplier to place a lien on a borrower's property for payment of work performed or material delivered on the property.
MERGED CREDIT PROFILE (MPR) 
A report combining credit information from as many as 3 different credit bureaus.
Metes and Bounds
Description in a deed of land location in which the boundaries are defined by directions and distances.
MI Company
Private or state mortgage insurance company that insures against loss in the event a mortgagor defaults on a conventional mortgage.
Minimum Lot Zoning
Type of zoning that regulates the smallest lot size permitted per building.
MIXED-USE PROPERTY 
A property in which a portion is used for commercial or retail purposes and the other portion is used for residential purposes. A property can also be considered mixed use if different combinations of uses are present such as commercial/industrial or residential/industrial. For example, a multi-unit dwelling with the front unit used as a commercial store and the back unit used as a dwelling.
Mobile Home
Factory-assembled residence consisting of one or more modules, in which the chassis and wheels are an integral part of the structure, and can be readied for occupancy without removing the chassis and/or wheels.
Modification
Act of changing any of the terms of the mortgage.
MODIFICATION AGREEMENT
In the mortgage lending industry, a written directive to the title company to correct a typographical error on instructions to title.
Modular House
Factory-assembled residence built in units or sections, transported to a permanent site and erected on a foundation. The term excludes mobile homes.
Monthly Operating Income
Income from the rental of an investment property that is determined by reducing the annual effective gross income for the property by the annual operating expenses and dividing the result by 12. We use this in calculating whether a borrower who will occupy one unit of a two (2) to four (4)-family investment property as his or her principal residence qualifies for a mortgage.
Mortgage
Collectively, the security instrument, the Note, the title evidence, and all other documents and papers that evidence the debt.
MORTGAGE BANKER
A non-depository financial institution that specializes in originating and servicing loans. They generally sell their loans to investors, but may continue to service them.
Mortgage Broker
A Mortgage Broker is the real estate professional who represents an array of banks seeking to issue mortgages. This person meets with a customer, assists with the mortgage application and effectuates the mortgage process on behalf of the borrower and the bank. Generally, the mortgage broker is paid a fee by the bank for this service. Is a firm or individual who brings the borrower and lender together, receiving a commission if a sale results. A mortgage broker does not retain servicing.
Mortgage Credit Certificate
Credit given by a government entity through tax rebates. These payments can be considered income if verified in writing using the Mortgage Credit Certificate Commitment. The amount of the credit is added to the gross income.
Mortgage Credit Life Insurance
Term life insurance often bought by mortgagors. The amount of coverage decreases as the mortgage balance declines. In the event the borrower dies while the policy is in force, the debt is automatically satisfied by insurance proceeds.
Mortgage Insurance
See Private Mortgage Insurance.
MORTGAGE LATE
More than 1 payment due at the same time the most recent payment is due.
Mortgage Payment Ratio
Total mortgage payment divided by the effective gross income.
Mortgagee
Lender in a mortgage transaction.
Mortgagor
Borrower or owner in a mortgage transaction who pledges property as a security for a debt.
Multi-dwelling unit condominium 
Condominium project that permits an individual to hold title to more than one dwelling unit, with ownership of all of his or her owned units evidenced by a single deed and mortgage.