Page 50 - Homeowners Manual - El Dorado County
P. 50

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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