N

---

NATIONAL HOUSING ACT MORTGAGE
A first mortgage, originated by an approved lender, granted under the terms of, and insured under, the National Housing Act 1954.

NEGATIVE CASH-FLOW
Where operating costs exceed gross rental income or debts.

NET OPERATING INCOME (NOI)
The balance remaining after deduction of operating expenses from gross receipts and gross rental, but not including the deducting of debt service on mortgages. Free and clear return on property is calculated by the ratio of NOI to total investment including mortgages and equity. This gives a direct means of comparing the return on different properties.

NET RATE OF INTEREST
The interest rate received by a mortgage lender net of the servicing fee deducted by a loan correspondent, etc.

NOMINAL INTEREST RATE
Interest rate stated on the face on a loan document. However, if the loan amount is discounted or sold at premium, the effective rate of interest will either be higher or lower.

NON-RECOURSE LOAN
A clause in a loan which waives personal liability of the borrower on the loan.

NOTICE D.O.R.
Notice filed in court by mortgagor under foreclosure proceedings that s/he desires an opportunity to redeem.