G

Question 1

GOOD FAITH ESTIMATE (GFE)

Answer 1

An estimate of closing costs, made in compliance with RESPA requirements, that must be given to mortgage applicants within three days after loan application is complete. Effective October 3, 2015, this disclosure was replaced by the Loan Estimate for most transactions.

Question 2

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GINNIE MAE)

Answer 2

An agency within HUD which guarantees securities backed by the FHA, VA, or RHS. Ginnie Mae is often discussed alongside government-sponsored enterprises Fannie Mae and Freddie Mac, but unlike those entities, it does not issue mortgage-backed securities.

Question 3

GRADUATED PAYMENT MORTGAGE (GPM)

Answer 3

A type of flexible-payment mortgage where the payments increase for a specified period of time and then level off.

Question 4

GROWING EQUITY MORTGAGE (GEM)

Answer 4

A fixed-rate mortgage that provides scheduled payment increases over an established period of time. The increased amount of the monthly payment is applied directly toward reducing the remaining balance of the mortgage.

Question 5

GUARANTY

Answer 5

A promise by one party to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to the contract.