Glossary(M)

M

Manufactured (Mobile) Home

A structure, built on a permanent chassis, transported to a site in one or more sections, and affixed to a permanent foundation. The term does not include recreational vehicles.

Maturity

The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.

Member

Those persons enumerated in the federally insured credit union's field of membership who have been elected to membership in accordance with the Federal Credit Union Act or state law in the case of state credit unions. It also includes those nonmembers permitted under the Federal Credit Union Act to maintain accounts in an insured credit union, including nonmember credit unions and nonmember public units and political subdivisions.

Member Business Loans

A member business loan includes any loan, line of credit, or letter of credit (including any unfunded commitments) where the borrower uses the proceeds for commercial; corporate; business investment property or venture; or agricultural purposes.

Membership

To have a savings account at a credit union, you must belong to a group of people with a common bond. As a member of a credit union, you also become an owner of the credit union. Because you are an owner, your savings account is called a regular share account.

Minimum Balance

The amount of money required to be on deposit in an account to qualify the member for special services or to waive a service charge.

Minimum Payment

The minimum dollar amount that must be paid each month on a loan, line of credit, or other debt.

Missing Payment

A payment that has been made on, but not credited to, the appropriate account.

Money Market Account (MMA)

A savings account that allows the owner to make a limited number of transactions each month. Since it is a share account, an MMA is subject to NCUA insurance coverage. An MMA is an account share type, not an account ownership type. The amount of NCUA insurance coverage available to the owner(s) of an MMA depends on the ownership category (single, joint, trust, etc.,) in which the MMA is held.

Money Market Share Account

A savings account that generally offers a higher rate of interest in exchange for larger than normal deposits. Insured by the NCUSIF, these accounts have limits on the number of transactions allowed and may require higher balances to receive the higher rate of interest.

Monthly Spending Plan

A document that helps you to estimate what you can afford to pay, for example, a home, including the mortgage, property taxes, insurance, and monthly maintenance and utilities.

Mortgage

A contract or debt instrument used in a real estate transaction where the property is the collateral for the loan. A mortgage gives the lender a right to take possession of the property if the borrower fails to pay off the loan.

Mortgage Loan

A loan made by a financial institution to a borrower for the financing of real property.

Mortgage Servicing Account

Accounts maintained by a mortgage servicer, in a custodial or other fiduciary capacity, which are comprised of payments by mortgagors of principal and interest, shall be insured for the cumulative balance paid into the account by the mortgagors, up to the limit of the Standard Maximum Share Insurance Amount per mortgagor. Accounts maintained by a mortgage servicer, in a custodial or other fiduciary capacity, which are comprised of payments by mortgagors of taxes and insurance premiums shall be added together and insured in accordance with accounts held by agents or nominees for the ownership interest of each mortgagor in such accounts.

Mortgagee

The financial institution in a mortgage loan relationship.

Mortgagor

The borrower in a mortgage loan relationship.