Mortgage Acronyms

0-9 | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

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

BD: Buydown

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.

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


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

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


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

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


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


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

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

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.


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


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

0-9 | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

Contact us to learn more about our mortgage loan quality, risk management and automation solutions

Contact Us