Glossary of Real Estate Terms (Oregon) – G
Gentrification – A term used to describe the general upgrading in appearance and value of an area or neighborhood, usually through a change in its demographics, such as the introduction of newer, younger and more affluent homeowners.
General Contractor – One who contracts directly with the owner of a property to construct a structure or perform certain repairs or improvements. The general contractor oversees the project and is in charge of selecting the subcontractors, overseeing their work, and paying their invoices.
General Warranty Deed – One of the four major deeds used in Oregon. A general warranty deed (or “warranty deed”) conveys full title to real property and gives the grantee (the one receiving the conveyance) the maximum amount of protection to a buyer through the use of certain written warranties, guaranteeing the quality of the seller’s title. (See, ORS 93.860)
Ginnie Mae (“GNMA”) – Stands for Government National Mortgage Association. This quasi-governmental agency or “GSE” (define below), acts as a secondary market for the purchase of federally insured or guaranteed loans, such as the FHA, DVA and the Rural Housing Service. Since these loans are guaranteed or insured, the original lenders are able to make lower interest loans with more flexible terms, thus enabling lower and middle income borrowers to obtain housing funds. These mortgages are then pooled and sold as securities to investors who are guaranteed the timely payment of principal and interest.
Good Faith Estimate (“GFE”) – The former name of a document given by lenders, mortgage brokers and other loan originators to borrowers upon loan application. The GFE provides an estimate of the settlement charges (i.e. closing costs) and loan terms the borrower may expect if approved for their particular loan. Under the TILA-RESPA Integrated Disclosure Rule (“TRID”), the Good Faith Estimate has been renamed (with new rules) the “Loan Estimate“. [Don’t ask me why they took “good faith” out of the new name.] See “Loan Estimate” below.
Government Sponsored Enterprise (“GSE”) – The primary examples are Fannie Mae, Freddie Mac and Ginnie Mae. Although they were federally created initially as privately held entities designed to purchase mortgages in the secondary market, they were regarded as having the implicit “full faith and credit” of the United States behind them – that is, they were “too big to fail.” Recent events have tended to confirm that the federal government will not let Fannie and Freddie fail, although they are in continuous need of infusions of money to stay afloat. Recently, they have been taken over by the federal government and are no longer a part of the private secondary money market.
Graduated Payment Mortgage (“GPM”) – Mortgages that have graduated payments, that is, commencing with lower monthly installments of principal and interest, and growing larger over a designated period of time, ultimately reaching a fixed level for the remainder of the loan term.
Grantee – A term used in a deed of conveyance to refer to the recipient of the real property interest.
Grantor – A term used in a deed of conveyance to refer to the person or entity making the conveyance of the real property interest.
Gross Income – One’s income from all sources before adjustments for taxes and deductible items.
Guarantee – A promise to be responsible for the payment or performance of a third party should they default in their obligations. A guarantee can also refer to a warranty or promise to replace or repair a product.