Arbor Financial Group Marketing Engines, Inc.

Glossary of Terms

Mortgage. Real Estate & Insurance

O

OBLIGATIONS
Any debt or recurring payment the borrower is obligated to pay, except for mortgage payments.
OBSOLESCENCE
Condition or process of falling into disuse.
Occupant Borrowers
Borrower who is the owner and occupant of the property or a unit.
Offering Plan
An Offering Plan, also known as a Prospectus, is a document issued by a sponsor in the process of converting a building to cooperative or condominium ownership (or developing a new building). Its purpose is to provide full disclosure of all relevant data associated with evaluating an investment in the property.
Offsites  
Improvements that are to be made to the adjacent to the subject property. (I.e.) roads, water and sewer, sidewalks, etc. These improvements must be complete prior to the start of actual construction on the financed project.
One-Time Close Construction Program
A combined construction AND permanent loan program, provides construction and permanent financing of all costs related to building a home in one simple loan transaction.
Operating Expenses
Costs of maintaining an investment property, including expenses for electricity, gas, fuel oil, water/sewer, trash removal, pest control, license fees, painting/decorating, general repairs/maintenance, supplies, casual labor, professional management fees, and replacement reserves.
Origination Fees
Fees charged by a lender to prepare loan documents, make credit checks, inspect, and sometimes appraise a property. The fees are usually computed as a percentage of the face value of the mortgage.
OVER IMPROVEMENT
An improvement, excessive in cost or size, in relation to land value or value of surrounding improvements.
OWNER OCCUPIED
Designation given to property used as the owner's residence.
Owner of Record
Entity that appears in the public records as the owner of a mortgage; usually the mortgage originator, unless the mortgage is subsequently assigned to someone else and that assignment is recorded.
Owner's Association
Nonprofit corporation or association that manages the common areas of a PUD or condominium project. In a condominium project, it has no ownership interest in the common areas. In a PUD project, it holds title to the common areas.