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GLOSSARY
Money market account
An FDIC insured deposit account that allows a maximum of six monthly withdrawals. This allows these accounts to remain liquid and are known as stable accounts because they invest in short term debts with maturities of under a year.
Money market funds
Mutual funds that invest in short term debts such as Treasury Bills, commercial paper, repurchase agreements, and certificates of deposits. These are not insured by the FDIC. It is possible to lose money with these funds.
Money market mutual fund
A fund that invests in short term paper debts, designed to produce high yields without the loss of capital.
Monroney sticker
The sticker seen on new car windows which lists the base price, the installed options, the manufacturers suggested retail price (MSRP), and the fuel economy and mileage. This sticker is required by law.
Monthly periodic rate
The yearly interest rate divided by twelve.
Moratorium
A moratorium is a holding period during which a certain activity is temporarily suspended. In bankruptcy, for example, the court puts a moratorium on debt collection, meaning debt collectors have to cease their efforts to contact the debtor.
Morning loan
A morning loan is a type of funding offered to brokers for the purchase of security. Funds are advanced with the promise that the broker will deliver the purchased securities to the bank later that same day. Once the securities are received, they become collateral, and the loan is converted to a broker's loan.
Mortality and expense risk charge
Mortality and expense risk charge is a fee charged on a variable annuity contract. The charge is assessed as a percentage of the account value, and is intended to compensate the insurance company for the risks it assumes under the annuity contract. If, for example, the annuity guarantees payments for the insured's lifetime, the insurance company accepts the risk that the insured will live significantly longer than expected.
Mortgage
A lawful document promising a lender a certain property as security or guarantee towards payment of a debt. Common misspellings: Mortage and Morgage
Mortgage acceleration clause
A term in the mortgage agreement that allows the lender to demand the full balance payment under certain circumstances, such as sale of the property, default on payments or refinancing.
Mortgage accelerator
A mortgage accelerator is a specialty mortgage loan that combines the characteristics of a checking account with the characteristics of a home equity line of credit. The borrower deposits regular income into the account, which immediately reduces the loan balance. Monthly expenses are paid out of the account, and these increase the loan balance. At the end of the month, any deposited amount that's not withdrawn to pay expenses, goes towards the loan balance as a principal repayment. Over time, the borrower accrues interest more slowly, and is therefore able to pay off the debt balance more quickly.
Mortgage banker
A mortgage banker is an individual or entity that originates real estate property loans in its own name. After funding, the loans might be held in the banker's portfolio, or sold to investors.
Mortgage Bankers Association - MBA
Mortgage Bankers Association, or MBA, is a national industry association that promotes standards of practice for professionals working in real estate finance.
Mortgage banking
Mortgage banking is the practice of originating real estate loans. Once the loans are originated, they're often sold by the mortgage banker to investors.
Mortgage bond
A mortgage bond is a corporate debt instrument that's supported by real estate property collateral. Bondholders have a claim on the collateral property if the corporate borrower defaults.