0 – 9
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
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
Basel III: Statement of best practices in banking oversight issued by Basel Committee on Banking Supervision.
BCBS: Basel Committee on Banking Supervision
BIS: Bank for International Settlements
BoE: Bank of England
BPMS: Business Process Management System
BPO: Broker Price Opinion
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.
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
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&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
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
FICO: Fair Issac Credit Score
FIPS: Federal Information Processing Standard
FKA: Formerly Known As
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
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
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
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
LA: Loan Amount
LARA: Land Safe Appraisal Risk Analysis
LE: Loan Estimate
LGD: Loss given default
LHFS: Loan Held for Sale
LIBOR: London Interbank Offered Rate
LLPA: Loan Level Pricing Adjustments
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
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
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
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.
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
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.
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
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-Bill: Treasury Bill
TCR: Transaction Coverage Rate
TDR: Troubled Debt Restructuring
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.
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
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
WAC: Weighted Average Coupon
WHB: Warehouse Bank
WLPR: Whole Loan Purchase Review
WSJ: Wall Street Journal
YSP: Yield Spread Premium