Note Buyers Guide 101

G government mortgage A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Contrast with conventional mortgage. Government National Mortgage Association A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Created by Congress on September 1, 1968, GNMA assumed responsibility for the special assistance loan program formerly administered by Fannie Mae. Popularly known as Ginnie Mae. grantee The person to whom an interest in real property is conveyed. grantor The person conveying an interest in real property. ground rent The amount of money that is paid for the use of land when title to a property is held as a leasehold estate rather than as a fee simple estate. group home A single-family residential structure designed or adapted for occupancy by unrelated developmentally disabled persons. The structure provides long-term housing and support services that are residential in nature. growing-equity mortgage (GEM) A fixed-rate mortgage that provides scheduled payment increases over an established period of time, with the increased amount of the monthly payment applied directly toward reducing the remaining balance of the mortgage. guarantee mortgage A mortgage that is guaranteed by a third party. guaranteed loan Also known as a government mortgage. Ginnie Mae. See GNMA. GNMA See Government National Mortgage Association. Golden Parachute. A plan devised by existing management stipulating that an acquiring company has to pay executives of the acquired company a substantial sum of money in the event of removing the former. Government National Mortgage Association (Ginnie Mae). A government-owned corporation that purchases mortgages and re-packages them as pass-through securities. The holder of a pass-through bond owns a portion of the underlying mortgages. Greenmail In a typical greenmail, the acquiring firm has already purchased a number of shares of the target firm's stock. Management of the target company offers to buy back the stock, at a price higher than the market. Growth Stocks Stocks of companies that have an opportunity to invest in projects that earn more that the required rate of return.