M

Question 1

MANDATORY ARBITRATION AGREEMENT

Answer 1

A provision in a contract that requires all parties to submit to arbitration to resolve disputes instead of seeking action in court.

Question 2

MARGIN

Answer 2

The amount that a lender adds to the index on an ARM to establish the adjusted interest rate.

Question 3

MARKUP

Answer 3

A service provider increasing the charges of another provider collected from a borrower, then retaining the additional fees.

Question 4

MATURITY

Answer 4

The date on which the principal balance of a loan becomes due and payable.

Question 5

MERGED CREDIT REPORT

Answer 5

A consumer credit report that contains information from two or more of the three credit repositories. A tri-merge report contains all three.

Question 6

MONTHLY FIXED INSTALLMENT

Answer 6

That portion of the total monthly payment applied toward principal and interest.

Question 7

MORTGAGE ASSISTANCE RELIEF SERVICE (MARS)

Answer 7

Any plan, program, or service offered, in exchange for compensation, to assist in stopping, preventing, or postponing foreclosure or repossession of a dwelling. This can include a number of services, such as negotiating or arranging for modification of loan terms or time extensions, obtaining forbearances, obtaining waivers of acceleration clauses or balloon payments, or other services. See also Loan Modification.

Question 8

MORTGAGE-BACKED SECURITY (MBS)

Answer 8

A group of loans that have been bundled together for sale in the secondary mortgage market.

Question 9

MORTGAGE BANKER

Answer 9

Uniquely defined with specific differences under the mortgage lending laws of each state, a mortgage banker is generally an individual or entity that makes and funds mortgages, services mortgages, and sells mortgages in the secondary market.

Question 10

MORTGAGE BROKER

Answer 10

Uniquely defined with specific differences under the mortgage lending laws of each state, a mortgage broker is generally an individual or entity that arranges funding or negotiates mortgage loans for a potential borrower, and charges a fee for these services.

Question 11

MORTGAGE INSURANCE (MI)

Answer 11

Insurance that indemnifies the lender against default by the borrower. This may be in the form of Mortgage Insurance Premiums (MIP), which is used on FHA-insured loans, or Private Mortgage Insurance (PMI), used for other loan types.

Question 12

MORTGAGE INSURANCE PREMIUM (MIP)

Answer 12

The fee paid by borrowers for mortgage insurance on an FHA loan. MIP is paid in two ways: annual MIP and upfront MIP (UFMIP).