Title Insurance Dictionary-Glossary

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G

General Warranty Deed
The Grantor warrants title against all claims.

Gestation Repo
A repurchase agreement covering the time between the date an issuer submits documents to the Government National Mortgage Association for final pool approval and the date the new security is actually issued (usually 20 calendar days).

Gift Letter
A form stating that a relative is giving you money to help you buy a home, and that they will not ask you to it pay back. The letter also provides proof, by referring to bank statements and other records, that the relative does, in fact, have enough money to cover the amount of the gift, and that the money has been transferred to your possession.

Ginnie Mae
See Government National Mortgage Association.

Going Long
A strategy wherein loans are originated before an attempt is made to sell them to investors.

Going Short
A strategy wherein investor commitments are obtained before loans are originated against commitments.

Government National Mortgage Association
On September 1, 1968, Congress enacted legislation to partition FNMA into two continuing corporation entities. GNMA has assumed responsibility for the special assistance loan programs. Also, GNMA administers the mortgage-backed securities programs that channel new sources of funds into residential financing through the sale of privately issued securities carrying the GNMAS guaranty.

Graduated Payment Mortgage (GPM)
A type of flexible-payment mortgage where the payments increase for a specified period of time and then level off. This type of mortgage has negative amortization built into it.

Grantee
The person receiving an interest in property. Compare, GRANTOR

Grantor
The person granting, selling or giving up an interest in property. Compare, GRANTEE.

Gross Income
Income before expenses.

Gross Margin
With regard to an adjustable rate mortgage, an amount expressed as percentage points, stated in the note which is added to the current index value on the rate adjustment date to establish a new note rate.

Ground Lease
The owner grants a long term lease of the land (usually 99 years) and allows the lessee to build and use the land as agreed. At the end of the term, the land and all improvements revert to the owner.

Guaranteed Coupon
A term in a contract for the purchase or sale of mortgage-backed securities that states the securities to be delivered will bear an agreed upon interest rate.

Guaranteed Mortgage Certificate (GMC)
A bond-like instrument issued by the Federal Home Loan Mortgage Corporation that represents ownership in a large pool of residential mortgages. Principal is returned annually and interest is paid semiannually.

Guaranty
A promise by one party to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract

Guardian
One appointed by the Court to administer the affairs of a minor. A guardian ad litem is appointed to protect one's interest in a particular legal action. See, CONSERVATOR.

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