Mortgage Acronyms

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1003

Residential Loan Application

1008

Underwriting Loan Transmittal Summary

1802a

VA Loan Application Addenda

203(h)

A single family program within HUD for victims of Presidential-Declared major disasters

203(k)

A single family program for the rehabilitation and repair of single-family properties

4506

IRS Form request for verification of tax transcripts

4506-T Requirement

As of September 1, 2009, Fannie Mae is now requiring its lenders to "obtain a completed and signed Form 4506-T from all borrowers at both application and closing." (See Announcement 09-19 for further information)

92900s

FHA Loan Application Addenda


A

AARMR

American Association of Residential Mortgage Regulators

ABA

American Bankers Association

ACUMA

American Credit Union Mortgage Association

ADP

Automated Data Processing

AIR Table

Adjustable Interest Rate Table

AKA

Also Known As

AP Table

Adjustable Payment Table

APOR

Average Prime Offer Rate

Appraisal

A written estimate of a property's current market value, prepared by an appraiser.

Appraisal Desk Review

A report commenting on the completeness and accuracy of the appraisal.

Appraisal Field Review

A visual inspection of the property from the street, as well as the neighborhood surrounding the property. This may be required in addition to a standard appraisal. For FHA, Fannie Mae, and Freddie Mac, the general quality control guidelines is that you need to perform an appraisal field review on 10% of the loans selected for review.

Appraiser

A professional with knowledge of real estate markets, who estimates the value of a property through an appraisal.

APR

Annual Percentage Rate

ARM

Adjustable Rate Mortgage

ATIMA

As Their Interest May Appear

ATR

Ability to Repay

AUS

Automated Underwriting System

Automated underwriting

An automated, computer-driven process for providing a recommendation for the lender either to approve the loan or forward the loan to an underwriter. This helps inform the loan applicant very quickly about approval.

Automated underwriting system

A computer system for automated underwriting. Mortgage insurers and some large lenders have developed their own systems, but the most widely used are Fannie Mae's "Desktop Underwriter" and Freddie Mac's "Loan Prospector."

AVM

Automated Valuation Model


B

Basel III

Statement of best practices in banking oversight issued by Basel Committee on Banking Supervision.

BCBS

Basel Committee on Banking Supervision

BD

Buydown

BIS

Bank for International Settlements

BoE

Bank of England

BPMS

Business Process Management System

BPO

Broker Price Opinion


C

CAIVRS

Credit Alert Interactive Voice Response System

Cash-Out Refinancing

Refinancing for an amount larger than the remaining balance on the old loan plus settlement costs, so that the borrower takes "cash-out."

CD

Certificate of Deposit or Closing Disclosure

CDO

Collateralized Debt Obligation

CECL

Current Expected Credit Loss Model

CET1

Common Equity Tier I (Reference Basel III)

CET2

Common Equity Tier II

CFPB

Consumer Finance Protection Bureau

CHUMS

Computerized Homes Underwriting Management System

CLTV

Combined Loan-to-Value

CMBS

Commercial Mortgage Backed Securities

COC

Change of Circumstance

COFI

Cost of Funds Index

Compliance

The state of being in accordance with established regulations, guidelines, specifications, etc.

CONDO

Condominium

CONST/PERM

A construction-permanent mortgage program

Conventional Mortgage

A home mortgage that is neither FHA-insured nor VA-guaranteed.

Correspondent

A lender who can extend loans but generally sells them to a larger wholesale lender.

CPL/ICL

Closing Protection Letter/Insured Closing Letter

CSBS

Conference of Bank Supervisors

CTC

Clear to Close

CUNA

Credit Union National Association


D

DBA

Doing Business As

DBE

Disadvantaged Business Enterprise

DE

Direct Endorsement

Default

A borrower's failure to fulfill the terms of the loan agreement. Generally loans that are delinquent for 90 days or more are viewed as being in default.

Delinquency

A mortgage payment that is more than 30 days late.

Dept of HUD

Department of Housing and Urban Development

DFA

Dodd-Frank Wall Street Reform and Consumer Protection Act

DIL

Deed in Lieu

Dodd-Frank Act

The Dodd-Frank Wall Street Reform and Consumer Protection Act

DOT

Deed of Trust

DTA

Deferred Tax Assets

DTC

Direct to Consumer

DTI

Debt to Income Ratio

DU / DO

Desktop Underwriter and Desktop Originator. States Fannie Mae AUS.


E

E&O

Error and Ommission Insurance

ECOA

Equal Credit Opportunity Act

EIM

Effective Interest Method

EIR

Effective Interest Rate

EPD

Early Payment Default

EPLS

Excluded Parties List System

ERM

Enterprise Risk Management

EU

European Union


F

FACTA

Fair and Accurate Credit Transaction Act

Fannie Mae

Federal National Mortgage Association (FNMA). Along with Freddie Mac, it is one of two Federal agencies that purchase home loans from lenders.

FASB

Financial Accounting Standards Board

FCRA

Fair Credit Reporting Act

FDCPA

Fair Debt Collection Practices Act

FDIC

Federal Deposit Insurance Corporation

FED

Federal Reserve Board

FHA

Federal Housing Administration. An agency of HUD that insures residential mortgages.

FHA Mortgage

A mortgage insured by the Federal Housing Administration, which insures the lender against loss. One advantage of an FHA loan is the low down payment requirement.

FHAC

Federal Housing Administration Connection (FHA computerized system)

FHFA

Federal Housing Finance Authority

FHLB

Federal Home Loan Banks

FHLMC

FreddieMac

FICO

Fair Issac Credit Score

FIPS

Federal Information Processing Standard

FKA

Formerly Known As

FNMA

FannieMae

FOMC

Federal Open Market Committee

Freddie Mac

Federal Home Loan Mortgage Corporation. Along with Fannie Mae, it is one of two Federal agencies that purchase home loans from lenders

FSOC

Financial Stability Oversight Council

FTC

Federal Trade Commission. The FTC helps protect consumers and promote fair competition, while prohibiting "unfair and deceptive acts or practices."

FTC Rule

Federal Trade Commission Regulation Rule

FTHB

First Time Home Buyer

FTP

Final Title Policy

FV

Fair Value

FVNI

Fair Value Net Income

FVOCI

Fair Value Other Comprehensive Income


G

GAAP

Generally Accepted Accounting Principles

GDP

Gross Domestic Product

GFE

Good Faith Estimate. The form that lists estimated settlement charges the borrower must pay at closing. Lenders must provide borrowers with the GFE within three business days of receiving the loan application.

GLB

Graham-Leach-Bliley Act/Financial Services Moderization Act of 1999

GNMA

GinnieMae. Government National Mortgage Association. A Federal agency that guarantees residential mortgages insured or guaranteed by FHA or VA.

GPM

Graduated Payment Mortgage

GPM

Gross Profit Margin

GSE

Government Sponsored Enterprise

GTM

Government Technical Monitor

GTR

Government Technical Representative

GUS

USDA Guaranteed Underwriting System


H

HAMP

Home Affordable Modification Program

HARP

Home Affordable Refinance Program

HECM

Home Equity Conversion Mortgage (Reverse Mtg). An FHA reverse mortgage program.

HELOC

Home Equity Line of Credit - A mortgage set up as a line of credit for the borrower to draw up to a maximum amount, with the borrower's equity in their home as collateral.

HFC

Held for Sale

HFI

Held for Investment

HIPA

HomeOwners Information Protection Act

HMDA

Home Mortgage Disclosure Act

HOA

Home Owners Association

HOC HUD

Homeownership Center

HOEPA

Home Ownership and Equity Protection Act

HOI

Home Owners Insurance

HPA

Home Price Appreciation

HPML

Higher Priced Mortgage Loan

HUD

U. S. Department of Housing and Urban Development, which deals with programs for urban renewal and improved housing.

HUD 1

Loan Settlement Statement. The standardized form a borrower receives at closing, detailing all funds paid at closing in a real estate transaction. This includes RE commissions, loan fees, points, taxes, initial escrow amounts, and other parties receiving distributions.

HUD 1a

Loan Settlement Statement for a Refinance Transaction

HVCC

Home Valuation Code of Conduct. A rule effective May 1, 2009, which states that Fannie Mae and Freddie Mac are prohibiting lenders from working directly with appraisers. Instead, lenders must arrange appraisals through third-party management companies.

HVCRE

High Value Credit Risk Estimate

HW

HousingWire Magazine


I

IASB

International Accounting Standards Board

ICBA

Independent Community Bankers Association

IED

Initial Escrow Disclosure

ILC

Improvement Location Certificate

IMF

International Monetary Fund

IO

Interest Only

IR

Interest Rate

IRLC

Interest Rate Lock Commitment

IRRRL

(VA) Interest Rate Reduction Refinance Loan

ISAOA

It's successors and/or assigns


L

LA

Loan Amount

LARA

Land Safe Appraisal Risk Analysis

LE

Loan Estimate

LGD

Loss given default

LHFS

Loan Held for Sale

LIBOR

Loan Level Pricing Adjustments

LLPA

London Interbank Offered Rate

LN

Loan

LO

Loan Officer

Loan Prospector

Automated underwriting system for Freddie Mac loans.

LOCOM

Lower of Cost or Market

LOS

Loan Origination System

LP

FHLMC AUS: Freddie Mac AUS Loan Prospector

LPMI

Lender Paid Mortgage Insurance

LQI

LQI FNMA Loan Quality Initiative

LTV

Loan-to-Value


M

MAA

Mortage Action Alliance

MAR

Master Appraisal Report

MBA

Mortgage Bankers Association

MBS

Mortgage Backed Securities

MCAW

Mortgage Credit Analysis Worksheet. FHA Underwrting Loan Transmittal Summary.

MCC

Master Conditional Commitment

MCC

Mortgage Credit Certificate

MDIA/HDIA

Mortgage Disclosure Information Act

MERS

Mortgage Electronic Registration System

MFR

Multi-Family Residence

MI

Mortgage Insurance

MIC

Mortgage Insurance Certificate

MIN

Mortgage Identification Number

MIP

Mortgage Insurance Premium

MISMO

Mortgage Industry Standards Maintenance Organization

MLS

Multiple Listing Service

MOD

Loan Modification

MOM

MERS as Original Mortgagee

Mortgage Broker

An independent contractor who acts as an intermediary to sell mortgage loans. In contrast to a correspondent, a mortgage broker does not fund the loans.

Mortgage Lender

The financial institution that disburses funds to the borrower. The lender receives the note evidencing the borrower's obligation to pay, and the mortgage which is the lien on the subject property.

MRB

Mortgage Revenue Bond

MSA

Mortgage Servicing Assets

MSA

Metropolitan Statistical Area

MSN

Mortgage Servicing News

MSR

Mortgage Servicing Rights

MT

Mortgage Technology

MTA

12 Month Treasury Average Index

MTG

Mortgage


N

NAMB

National Association of Mortgage Brokers

NAR

National Association of Realtors

NCUA

National Credit Union Administration

Neg Am

Negative Amortization

NINA

No Income, No Assets

NKA

Now Known As

NMLS

National Mortgage Licensing System

NMN

National Mortgage News

NOIA

Notice of Incomplete Application

Non-Conforming Mortgage

A mortgage that does not meet the purchase requirements of Fannie Mae or Freddie Mac.

NOO

Non-Owner Occupied

NOR

Notice of Rejection may be used interchangeably with non-endorsement

Note

A written agreement that evidences a debt and a promise to repay the loan, including the manner in which the loan shall be paid.

NPL

Non-Performing Loan

NPR

Notices of Proposed Rulemakings from Basel Committee

NRSRO

Nationally Recognized Statistical Rating Organization


O

OCC

Office of the Comptroller of the Currency

OCI

Other Comprehensive Income

OFAC

Office of Foreign Assets Control

OMSR

Originated Mortgage Servicing Rights

OO

Owner Occupied

ORM

Operational Risk Management

OTC

One Time Close

OTS

Office of Thrift Supervision - now defunct.


P

PATRIOT Act

Uniting and Strengthening American by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001

PCI

Purchased Credit-Impaired Asset

PD

Probability default

PI

Payment and Interest

PITI

Principal & Interest, plus Taxes & Insurance

PMI

Private Mortgage Insurance

PMSR

Purchased Mortgage Servicing Rights

POS

Point of Sale

PPP

Prepayment Penalty

PR

Primary Residence

PTD

Prior to Documents

PTF

Prior to Funding

PUD

Planned Unit Development


Q

QA

Quality Assurance

QC

Quality Control

QM

Qualified Mortgage

QRM

Qualified Residential Mortgage

Quality Control Audit

Often referred to as a "quality control review." Frequent, independent review of loan files to determine compliance with various standards and regulations.

Quality Control Plan

A written program for improving the quality of loans, ensuring compliance with various regulations and guidelines, and reducing error/fraud. Some agencies that require a QC plan include FHA, Fannie Mae, and Freddie Mac.


R

RDOT

Recorded Deed of Trust

Red Flag Policy

A program required by the FTC to detect, prevent, and mitigate identity theft. Financial institutions and creditors must have a Red Flag Policy in place.

Red Flags Rule

A regulation from the Federal Trade Commission requiring all financial institutions and creditors to have a Red Flag Policy in place, in order to help prevent identity theft.

Reg X

Section of RESPA dealing with Fee Disclosure

Regulation Z

Regulation from the Federal Reserve promoting "the informed use of consumer credit by requiring disclosures about its terms and cost. The regulation also gives consumers the right to cancel certain credit transactions that involve a lien on a consumer's principal dwelling, regulates certain credit card practices, and provides a means for fair and timely resolution of credit billing disputes." (See www.federalreserve.gov)

REO

Real Estate Owned

REPO

Repurchase Agreement

RESPA

The Real Estate Settlement Procedures Act. RESPA was designed to protect consumers by requiring lenders to provide certain disclosures, as well as prohibiting referral fees and kickbacks.

Reverse Mortgage

A special type of home equity loan available to seniors aged 62 and older. A reverse mortgage allows the home owner to convert some of the home's equity into cash and usually does not need to be repaid during their lifetime (unless they sell their home or move to a retirement community).

RESPRO

Rural Housing Service

RHS

Real Estate Services Provider’s Council

Right of Rescission

The right of refinancing borrowers, under the Truth in Lending Act, to cancel the deal within three days of closing, at no cost.

RML

Residential Mortgage Loan

ROR

Right of Rescission

ROR

Right of Rescission

RTC

Right to Cancel

RWA

Risk Weight Average


S

SAFE

Secure and Fair Enforcement for Mortgage Licensing

SAS

Software as a Service

SBA

Small Business Administration

SEC

US Securities and Exchange Commission

Section 32

HOEPA High Fee Limit Calculation Requirements

Section 8

Section of RESPA dealing with Referral Fee Payment

SFHA

Special Flood Hazard Area

SFR

Single Family Residence

SIFI

Systematically Important Financial Institution

SISA

Stated Income, Stated Assets

SME

Secondary Marketing Executive

SOX

Sarbanes-Oxley Act

SRP

Service Release Premium

SSARS

Statement on Standards for Accounting and Review Service

SSFA

Simplified Supervisory Formula Approach

Streamlined Refinancing

Refinancing that doesn't require as much paperwork as a regular refinance, and is therefore quicker and less costly.


T

T-Bill

Treasury Bill

TCR

Transaction Coverage Rate

TDR

Troubled Debt Restructuring

TIL

Truth-in-Lending

TILA

Truth-in-Lending Act

TLC

Titan Lenders Corp

TPO

Third Party Origination

TRID

TILA RESPA Integrated Disclosures

Truth in Lending (TIL)

The Federal law designed to protect consumers in credit transactions, by requiring a meaningful disclosure of credit terms to borrowers, including fees, terms, and conditions.


U

UAD

Uniform Appraisal Dataset

UCDP

Uniform Collateral Data Portal

UDAAP

Unfair, Deceptive or Abusive Acts and Practices

UDM

Undisclosed Debt Monitoring

UETA

Uniform Electronic Transactions Act

UFMIP

Upfront Mortgage Insurance Premium

ULDD

Uniform Loan Delivery Dataset

UMDP

Uniform Mortgage Data Program

Underwriting Requirements

A lender's standards for determining if a borrower qualifies for a loan. These standards are more comprehensive than qualification requirements because they evaluate a borrower's creditworthiness.

UPB

Unpaid Principal Balance

URAR

Uniform Residential Appraisal Report

USDA

US Department of Agriculture

UTR

Underwriter to Review

UW

Underwriting


V

VA

Department of Veterans Affairs

VA-CRV

Veterans Administration Commitment of Reasonable Value

VA-MCRV

Veterans Administration Master Commitment of Reasonable Value

VA Mortgage

A mortgage insured by the Veterans Administration, with no down payment requirement. Available only to ex-servicemen and women, as well as those on active duty.

VOD

Verification of Deposit

VOE

Verification of Employment

VOM

Verification of Mortgage

VOR

Verification of Rent

VVOE

Verbal Verification of Employment


W

WAC

Weighted Average Coupon

WHB

Warehouse Bank

WLPR

Whole Loan Purchase Review

WSJ

Wall Street Journal


Y

YSP

Yield Spread Premium

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