Page 44 - Homeowners Manual - Sonoma County

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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