Page 54 - Homeowners Manual - Santa Clara County
P. 54

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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