Page 46 - Homeowners Manual - Arizona
P. 46

Flood Certification: A common term for a Federal       Hazard Insurance: Insurance protecting a property
          Emergency Management Agency (FEMA) Standard Flood      owner against loss, such as: fire, windstorm, lightning,
          Hazard Determination Form (SFHDF)� This determines     hail, explosion, riot, smoke, property damage, flood
          whether land or a building is located within a Special   or mudslide� It is usually purchased as part of the
          Flood Hazard Area for purposes of flood insurance      Homeowner’s Insurance Policy�
          requirements under the National Flood Insurance
          Program�                                             Heir: One who might inherit or succeed to an interest in
                                                                 land of an individual who dies without leaving a will
        Forfeiture of Title: Provision in a deed creating a condition   (intestate)�
          which will cause title to be passed to another, should
          certain circumstances occur�                         Home Equity Conversion Mortgage: A reverse or reverse
                                                                 annuity mortgage in which HUD (U�S� Department of
        Freddie Mac: Federal Home Loan Mortgage Corporation      Housing and Urban Development), through FHA (Federal
          (also FHLMC) is a stockholder-owned corporation        Housing Administration), guarantees that the borrower
          chartered by Congress that purchases mortgage loans�   will receive monthly payments from the insurer (FHA), in
                                                                 the event the lender is unable to make payments to the
        G                                                        borrower�

        Ginnie Mae: Government National Mortgage Association   Home Equity Line of Credit (HELOC): A loan in which the
          (also GNMA) is a wholly owned United States corporation   lender agrees to lend a maximum amount within an
          that guarantees privately issued securities backed by   agreed period (called a term), where the collateral is the
          pools of mortgages insured by FHA (Federal Housing     borrower’s equity in his/her house�
          Administration), FMHA (Farmers Home Administration) or
          VA (Veterans Administration)�                        Homeowners Insurance: Insurance protection paying
                                                                 benefits for damage to improved real property or
        Graduated Payment Mortgage: A loan in which monthly      possessions in the home� Also provides liability coverage
          payments are relatively small in the beginning and     against accidents in the home or on the property�
          gradually increase in dollar amount over the life of the
          mortgage�                                            HUD-1: The HUD-1 is a type of settlement statement
                                                                 which, prior to the TILA-RESPA Integrated Disclosure
        Grantee: A person who acquires an interest in land by deed,   (TRID) Rule, was required for use with all federally
          grant or other written instrument�                     related mortgage loans� It has been supplanted by the
                                                                 “Closing Disclosure” as a required form, but the HUD-
        Grantor: A person, who, by a written instrument, transfers to   1 will continue to be used for reverse mortgage and
          another an interest in land�                           HELOC transactions� In addition, it may remain in use for
                                                                 some transactions that do not involve federally related
        Guardian: One appointed by the court to administer the   mortgage loans since it functions well as a balance sheet
          affairs of an individual not capable of administering his or   of the settlement�
          her own affairs�

        H                                                      I
                                                               Improvements: Those additions to raw land tending to
        Harbor Line: An arbitrary line set by authorities on navigable   increase value, such as buildings, streets, sewer, etc�
          rivers, beyond which wharves and other structures may
          not be built� Also designated as line of navigation�  Indemnify: To make payment for a loss or to hold another
                                                                 harmless from loss�


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