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 tenancy.
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.
