tenancy
by the entirety
A type of joint tenancy of property that provides right
of survivorship and is available only to a husband and wife.
Contrast with tenancy in common.
tenancy
in common
A type of joint tenancy in a property without right of survivorship.
Contrast with tenancy by the entirety and with joint tenacy.
tenant-stockholder
The obligee for a cooperative share loan, who is both a
stockholder in a cooperative corporation and a tenant of
the unit under a proprietary lease or occupancy agreement.
third-party
origination
A process by which a lender uses another party to completely
or partially originate, process, underwrite, close, fund,
or package the mortgages it plans to deliver to the secondary
mortgage market. See
mortgage
broker.
title
A legal document evidencing a person's right to or ownership
of a property.
title
company
A company that specializes in examining and insuring titles
to real estate.
title
insurance
Insurance that protects the lender (lender's policy) or
the buyer (owner's policy) against loss arising from disputes
over ownership of a property.
title
search
A check of the title records to ensure that the seller is
the legal owner of the property and that there are no liens
or other claims outstanding.
total
expense ratio
Total obligations as a percentage of gross monthly income.
The total expense ratio includes monthly housing expenses
plus other monthly debts.
trade
equity
Equity that results from a property purchaser giving his
or her existing property (or an asset other than real estate)
as trade as all or part of the down payment for the property
that is being purchased.
transfer
of ownership
Any means by which the ownership of a property changes hands.
Lenders consider all of the following situations to be a
transfer of ownership: the purchase of a property "subject
to" the mortgage, the assumption of the mortgage debt
by the property purchaser, and any exchange of possession
of the property under a land sales contract or any other
land trust device. In cases in which an inter vivos revocable
trust is the borrower, lenders also consider any transfer
of a beneficial interest in the trust to be a transfer of
ownership.
transfer
tax
State or local tax payable when title passes from one owner
to another.
Treasury
index
An index that is used to determine interest rate changes
for certain adjustable-rate mortgage (ARM) plans. It is
based on the results of auctions that the U.S. Treasury
holds for its Treasury bills and securities or is derived
from the U.S. Treasury's daily yield curve, which is based
on the closing market bid yields on actively traded Treasury
securities in the over-the-counter market. See
adjustable-rate
mortgage (ARM).
Truth-in-Lending
A federal law that requires lenders to fully disclose, in
writing, the terms and conditions of a mortgage, including
the annual percentage rate (APR) and other charges.
two-step
mortgage
An adjustable-rate mortgage (ARM) that has one interest
rate for the first five or seven years of its mortgage term
and a different interest rate for the remainder of the amortization
term.
two-
to four-family property
A property that consists of a structure that provides living
space (dwelling units) for two to four families, although
ownership of the structure is evidenced by a single deed.
trustee
A fiduciary who holds or controls property for the benefit
of another.
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