Heidi M Tourangeau
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480-862-2597
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(800) 994-2488

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Late Charge                An additional charge paid by the customer as a penalty for not making the regular loan payment prior to the expiration of the grace period.
 
Lease                        A contract for possession of land in exchange for payment of rent.
 
Leasehold                  An estate or interest in an estate in real property held by virtue of a lease.
 
Legal Description        A property description recognized by law that is sufficient to locate and identify the property without oral testimony.
 
Lessee                      The tenant under a lease.
 
Lessor                       The landlord under a lease.
 
Lien                          A legal hold or claim of a creditor on the property of another as security for a debt. Liens are always against property rather than a true title interest.
 
Lifetime Cap               The maximum allowable interest rate over the life of an ARM loan.  It gives the customer the added protection of a maximum interest rate that can be charged during the term of the loan. The loan can never adjust to an interest rate higher than the lifetime cap. (The lifetime cap is sometimes referred to as a rate ceiling.) Note that the interest rate may not reach the lifetime cap during the loan term, depending on the market conditions during the term of the loan.
 
Lis Pendens                A recorded notice of the filing of a lawsuit.
 
Listing Agent              The Realtor who assists the seller. Also referred to as the Seller’s Agent.
 
Loan Disclosure           Informational material given to prospective customers outlining the overview of the loan program.
 
Loan Fee                    A fee charged a customer by a lender for negotiating a loan; sometimes used in reference to an additional fee over and above the origination fee.
 
Loan Origination         The generation of new loans by a lender, bank or mortgage broker.
 
 
Loan Performance        An automated underwriting system developed by MGIC.
Score (LPS)
 
Loan Portfolio             All the loans a financial institution or other lender holds as their assets at a given time.
 
Loan Processing          The steps taken by an institution from the time a request for a loan application is received to the time the loan is approved, including taking the application, credit investigation, evaluation of the loan, and other steps.
 
Loan Servicing             See Servicing.
 
Loan Term                  The period granted for loan repayment. Also see Repayment Term.
 
Loan Terms                Essential conditions of a loan which specify the principal amount, interest rate, maturity, method of repayment, etc.
 
Loan-To-Value (LTV)    A ratio calculated by dividing the proposed loan amount by the lesser of the sales price or appraised value; indicates what percentage of the property’s value is being borrowed.
 
Lock-In                      The time at which a pricing package is set for the loan; the locked pricing package is valid for a specific period of time. It is also known as a rate lock.
 
Loss Payable Clause    A clause sometimes inserted in an individual customer’s property insurance policy on his or her home; it provides that loss claims will be paid to a named third part (the lender).
 
  
 
 
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Manufactured Home     Factory-built or pre-fabricated housing, including mobile homes.
 
Margin                       (1) On an ARM, the number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment. 
                                (2) The spread for purchase/refinance loans that is added to an index value to create the actual mortgage interest rate on an ARM.
 
Market Value              See Fair Market Value.
 
Maturity                     The term of a loan, or the number of years or months for which the loan funds are advanced.
 
Mechanic’s Lien           A statutory lien attached to the property by those who have provided labor or materials to that specific property.
 
Metes and Bounds       Measurements and boundaries used in the legal description of real property; commonly used when a property is irregularly shaped.
 
Modification                Incremental pricing associated with various property and customer characteristics, as well as those characteristics that are not allowed on the proposed mortgage program.
 
Mortgage                   A lien or claim against real property given by the buyer to the lender as security for money borrowed.
 
Mortgage Insurance     Insurance which protects mortgage lenders against loss in the
(MI)                           event of default by the customer. This allows lenders to make loans with lower down payments. The federal government offers MI through HUD/FHA; private entities offer MI for conventional loans. Also see Private Mortgage Insurance.
 
Mortgage Life             A type of term life insurance often bought by mortgagors. The
Insurance                   amount of coverage decreases as the mortgage balance declines. In the event the customer dies while the policy is in force, the mortgage debt is automatically satisfied by insurance proceeds.
 
Mortgagee                  The lender in a mortgage transaction.
 
Mortgagor                  The customer in a mortgage transaction who pledges property as a security for a debt.
 
Multi-Family                A building with more than four residential units.
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National Flood            Enacted by Congress to allow the federal government and private
Insurance Program       insurance companies to act together to make flood insurance available at a reasonable cost.
 
Negative Amortization  Negative amortization occurs with ARM loans when the index rises (thus increasing the customer’s interest rate) so significantly that the minimum payment amount is insufficient to cover the interest due on the loan. In this case, if the customer continued to pay the minimum payment amount, any interest not covered by the payment is deferred and added to the principal balance. This addition of the deferred interest causes the principal to rise, rather than decrease as it would with regular amortization.
 
Net Income                The difference between gross income and expenses, including taxes and insurance, before depreciation and debt.
 
Non-Conforming          A mortgage loan in which the loan amount, the loan-to-value
Mortgage Loan            ratio, the term, or some other aspect of the loan exceeds permissible limits as specified in secondary market regulations.
 
Non-Owner Occupant   A customer who will not be residing in the subject property as their principal residence; the customer on rental/investment property.
 
Non-Owner Occupied    In a loan transaction, the subject property if the customer will not
Property                     be residing in it as their principal or secondary residence; a rental/investment property.
 
Note                          A written promise to repay a loan. It includes the loan amount, interest rate, and term. Also referred to as a promissory note.
 
Notice of Completion   Notice recorded within 10 days after completion of work on a property which, if valid, will shorten the time allowed for filing a mechanic’s lien. Used in those states where set out by law.
 
Notice of Default         Recorded notice that a default has occurred under a deed of trust; the first step in the non-judicial foreclosure of a deed of trust.