Page 52 - Homeowners Manual - El Dorado County

Mortgage Broker: A person or company that buys and sells Ownership: The right to possess and use property to the
mortgages for another on commission or who arranges exclusion of others.
for and negotiates mortgage contracts.
P
Mortgage Insurance: Insurance protecting against the
nonpayment of, or default on, an individual mortgage Patent: A document or grant by which the federal or state
or loan involved in a residential mortgage transaction. It government originally transferred title to public land to an
protects the mortgage lender against loss incurred by a individual. The first in the series of transfers by which title
reason of nonpayment or mortgage default. comes down to present owners.
Mortgagee: The mortgage lender. Personal Representative: A person appointed by the
probate court to administer a decedent’s estate.
Mortgagee’s Policy: See “Lender’s Policy.” Also see “Executor” or “Administrator.”

Mortgagor: The mortgage borrower. Plat or Plot: A map representing a piece of land subdivided
N into lots with streets shown thereon.
P.M.I.: Private Mortgage Insurance. An insurance contract
Non-Public Personal Information (NPPI or NPI): Means which insures that the named lender will recover a
‘‘personally identifiable financial information’’ that is (i) specific percentage of the loan amount from the insurer in
provided by a consumer to a financial institution, (ii) the event the loan goes bad.
about a consumer resulting from a transaction or service
performed for the consumer, or (iii) otherwise obtained by Points: A one-time special fee or extra charge paid to
the financial institution. Personally identifiable financial a lender in order to secure a loan. Expressed as a
information includes any information obtained by a percentage of face amount of mortgage.
financial institution in connection with its provision of a
‘‘financial product or service,’’ even if the information is Policy: See “Title Insurance Policy.”
not typically considered financial in nature.
Policyowner: The insured on a title insurance policy.
Notary: One authorized to take acknowledgments.
Power of Attorney: An instrument authorizing another to act
Note: The instrument evidencing the indebtedness. A note on one’s behalf in legal matters.
is usually secured by a security instrument such as a Power of Sale: A clause in a will, mortgage, deed of trust or
mortgage or deed of trust.
trust agreement authorizing the sale or transfer of land in
O accordance with the terms of the clause.
Pre-Settlement Inspections: See “Walk Through.”
Origination Fee: The administrative fee charged by the
lender to prepare loan documents, run credit checks, Prepayment Penalty: A clause in a mortgage or loan
inspect and sometimes appraise a property, usually contract that says if the mortgage is prepaid within a
computed as a percentage of the face value of the loan. certain time period, a penalty will be assessed. The
penalty can be based on percentage of the remaining
Owner’s Policy: A policy of title insurance, which insures mortgage balance or some other calculation as described
a named owner against loss by reason of defects, liens in the clause.
and encumbrances not excepted to in the policy or
unmarketability of the title. The company also agrees to Premium Tax: A tax imposed on all premiums from the
defend covered claims made against the title. business of title insurance. Only applies in some states.

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