| A |
| A.P.R |
Annual
Percentage Rate: The cost of your credit at a yearly
rate. |
| Actual
Cash Value |
The
cost of replacing the home with one of the same age
& condition; like kind and quality. Usually considered
replacement cost less depreciation. |
| Adjacent
Structures |
Structures
that are not on the original sales invoice of a manufactured
home but are individually listed, such as awnings, steps
utility sheds, carports, cabanas, porches, skirting,
and air conditioning units. |
| Agent |
The
insurance company representative licensed by the state
who solicits, negotiates or effects contracts of insurance
and services the policyholder for the insurer. |
| Agreed
Value |
Optional
endorsement with which the company agrees to pay the
limit of liability stated in the policy declarations
in the event of a total loss to the manufactured home.
|
| Amount
Financed |
Credit
or money actually made available to a borrower, repayable
according to terms and conditions stipulated in the
home loan contract. |
| |
B
|
| Binder |
A
temporary insurance contract that specifies programs,
limits and other policy provisions, including optional
endorsements issued for a short period of time before
the policy is delivered. |
| Borrower |
Any
legal entity (whether individual or organization) who
obtains funds from a manufactured home financier by
the extension of credit for a stated period of time,
evidenced by a manufactured home loan and lien against
a manufactured home. |
| |
C
|
| Cancellation |
Termination
of an insurance policy or loan contract before its expiration.
Almost invariably, the contract states the type of notice
necessary before such a cancellation becomes effective |
| Conditions |
The
actions that the insured must take, or continue to take,
for the insurance policy to remain in force and for
the insurer to process a claim |
| Contract |
A
written agreement to pay for the house purchased, in
payments of principal and interest at regularly schedule
intervals. |
| Credit
Application |
A
historical background of a person applying for a loan,
indicating any past credit references, age, employment,
personal and business references, and any other information
that might have a bearing on the applicant's ability
to repay any obligation (s)he may contract. |
| Credit
Report |
A
confidential report made by an independent individual
or organization who has investigated the financing standing,
reputation, and record of a loan applicant. |
| |
D
|
| Declarations
Page |
The
section of an insurance contract containing information
such as name, description and location of the insured
property, name and address of the insured, period a
policy is in force, premium payable and amount of coverage. |
| |
E
|
| Effective
Date |
The
date at which an insurance policy will cease to be in
effect. |
| Endorsement
|
A
form attached to the policy to amend conditions or to
modify underlying terms and coverages. |
| Expiration
|
The
date on which a contract or insurance policy will cease
to be in effect. |
| |
F
|
| Finance
Charge |
The
dollar amount the credit will cost you. |
| |
I
|
| Insurance |
A
contractual relationship which exists when one party
(the insurer), for a premium, agrees to reimburse another
party (the insured) for loss on behalf of the insured
all reasonable sums for which they maybe liable to a
third party (the claimant). In short, the payment of
a regular, predictable premium in exchange for financial
protection against an unpredictable loss. |
| Insurance
Company |
An
organization chartered under state laws to act as an
insurer. |
| Insured |
The
party covered by an insurance policy. |
| Insurer |
The
company offering protection through the sale of an insurance
policy to an insured. |
| Interest
Rate |
The
money paid for the use of money, expressed as a percentage
rate, computed from the ratio of interest-to-principal.
|
| |
L
|
| Leinholder |
The
person or business that loans you money on your home
and has a claim or title held against the house as security
for payment of the debt. |
| LTV
Ratio |
The
relationship, expressed as a percent, between the principal
amount of a loan and the value of the asset securing
the financing. In manufactured housing, this is the
percentage value of the property the lender is willing
to finance with a loan. |
| |
M
|
| Manufactured
Home |
A
factory-built, transportable housing unit, built on
a steel chassis and designed to be used as a permanent
dwelling, with or without a permanent foundation, when
connected to required utility services. |
| |
P
|
| Policy |
A
written agreement, which puts insurance coverage into
effect. |
| Policyholder
|
An
individual or other entity who owns an insurance policy.
|
| Promissory
Note |
A
legal instrument whereby the borrower promises to pay
the amount of money stated in the note according to
terms. |
| |
R
|
| Replacement
Cost |
New
for old; the cost of replacing the home with a new home
of like kind and quality, subject to policy limits. |
| |
S
|
| Security
Agreement |
An
agreement, describing a house, between the lender and
borrower stating that the lender shall have a security
interest in the manufactured home financed. |
| |
T
|
| Title |
Any
evidence required by law giving support to one's claim
of her/his right in or to, or full ownership of a specific
piece of property. |
| Trade-in |
A
used manufactured home which the customer turns over
to the retailer at an agreed amount to be applied as
a partial payment against the cost of a subsequent new
manufactured home. |
| |
| |
