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Residential Loan Application
Underwriting Loan Transmittal Summary
VA Loan Application Addenda
A single family program within HUD for victims of Presidential-Declared major disasters
A single family program for the rehabilitation and repair of single-family properties
IRS Form request for verification of tax transcripts
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)
FHA Loan Application Addenda
American Association of Residential Mortgage Regulators
American Bankers Association
American Credit Union Mortgage Association
Automated Data Processing
Adjustable Interest Rate Table
Also Known As
Adjustable Payment Table
Average Prime Offer Rate
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.
A professional with knowledge of real estate markets, who estimates the value of a property through an appraisal.
Annual Percentage Rate
Adjustable Rate Mortgage
As Their Interest May Appear
Ability to Repay
Automated Underwriting System
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.”
Automated Valuation Model
Statement of best practices in banking oversight issued by Basel Committee on Banking Supervision.
Basel Committee on Banking Supervision
Bank for International Settlements
Bank of England
Business Process Management System
Broker Price Opinion
Credit Alert Interactive Voice Response System
Refinancing for an amount larger than the remaining balance on the old loan plus settlement costs, so that the borrower takes “cash-out.”
Certificate of Deposit or Closing Disclosure
Collateralized Debt Obligation
Current Expected Credit Loss Model
Common Equity Tier I (Reference Basel III)
Common Equity Tier II
Consumer Finance Protection Bureau
Computerized Homes Underwriting Management System
Commercial Mortgage Backed Securities
Change of Circumstance
Cost of Funds Index
The state of being in accordance with established regulations, guidelines, specifications, etc.
A construction-permanent mortgage program
A home mortgage that is neither FHA-insured nor VA-guaranteed.
A lender who can extend loans but generally sells them to a larger wholesale lender.
Closing Protection Letter/Insured Closing Letter
Conference of Bank Supervisors
Clear to Close
Credit Union National Association
Doing Business As
Disadvantaged Business Enterprise
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.
A mortgage payment that is more than 30 days late.
Dept of HUD
Department of Housing and Urban Development
Dodd-Frank Wall Street Reform and Consumer Protection Act
Deed in Lieu
The Dodd-Frank Wall Street Reform and Consumer Protection Act
Deed of Trust
Deferred Tax Assets
Direct to Consumer
Debt to Income Ratio
DU / DO
Desktop Underwriter and Desktop Originator. States Fannie Mae AUS.
Error and Ommission Insurance
Equal Credit Opportunity Act
Effective Interest Method
Effective Interest Rate
Early Payment Default
Excluded Parties List System
Enterprise Risk Management
Fair and Accurate Credit Transaction Act
Federal National Mortgage Association (FNMA). Along with Freddie Mac, it is one of two Federal agencies that purchase home loans from lenders.
Financial Accounting Standards Board
Fair Credit Reporting Act
Fair Debt Collection Practices Act
Federal Deposit Insurance Corporation
Federal Reserve Board
Federal Housing Administration. An agency of HUD that insures residential mortgages.
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.
Federal Housing Administration Connection (FHA computerized system)
Federal Housing Finance Authority
Federal Home Loan Banks
Fair Issac Credit Score
Federal Information Processing Standard
Formerly Known As
Federal Open Market Committee
Federal Home Loan Mortgage Corporation. Along with Fannie Mae, it is one of two Federal agencies that purchase home loans from lenders
Financial Stability Oversight Council
Federal Trade Commission. The FTC helps protect consumers and promote fair competition, while prohibiting “unfair and deceptive acts or practices.”
Federal Trade Commission Regulation Rule
First Time Home Buyer
Final Title Policy
Fair Value Net Income
Fair Value Other Comprehensive Income
Generally Accepted Accounting Principles
Gross Domestic Product
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.
Graham-Leach-Bliley Act/Financial Services Moderization Act of 1999
GinnieMae. Government National Mortgage Association. A Federal agency that guarantees residential mortgages insured or guaranteed by FHA or VA.
Graduated Payment Mortgage
Gross Profit Margin
Government Sponsored Enterprise
Government Technical Monitor
Government Technical Representative
USDA Guaranteed Underwriting System
Home Affordable Modification Program
Home Affordable Refinance Program
Home Equity Conversion Mortgage (Reverse Mtg). An FHA reverse mortgage program.
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.
Held for Sale
Held for Investment
HomeOwners Information Protection Act
Home Mortgage Disclosure Act
Home Owners Association
Home Ownership and Equity Protection Act
Home Owners Insurance
Home Price Appreciation
Higher Priced Mortgage Loan
U. S. Department of Housing and Urban Development, which deals with programs for urban renewal and improved housing.
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.
Loan Settlement Statement for a Refinance Transaction
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.
High Value Credit Risk Estimate
International Accounting Standards Board
Independent Community Bankers Association
Initial Escrow Disclosure
Improvement Location Certificate
International Monetary Fund
Interest Rate Lock Commitment
(VA) Interest Rate Reduction Refinance Loan
It’s successors and/or assigns
Land Safe Appraisal Risk Analysis
Loss given default
Loan Held for Sale
London Interbank Offered Rate
Loan Level Pricing Adjustments
Automated underwriting system for Freddie Mac loans.
Lower of Cost or Market
Loan Origination System
FHLMC AUS: Freddie Mac AUS Loan Prospector
Lender Paid Mortgage Insurance
LQI FNMA Loan Quality Initiative
Mortage Action Alliance
Master Appraisal Report
Mortgage Bankers Association
Mortgage Backed Securities
Mortgage Credit Analysis Worksheet. FHA Underwrting Loan Transmittal Summary.
Master Conditional Commitment
Mortgage Credit Certificate
Mortgage Disclosure Information Act
Mortgage Electronic Registration System
Mortgage Insurance Certificate
Mortgage Identification Number
Mortgage Insurance Premium
Mortgage Industry Standards Maintenance Organization
Multiple Listing Service
MERS as Original Mortgagee
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.
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.
Mortgage Revenue Bond
Mortgage Servicing Assets
Metropolitan Statistical Area
Mortgage Servicing News
Mortgage Servicing Rights
12 Month Treasury Average Index
National Association of Mortgage Brokers
National Association of Realtors
National Credit Union Administration
No Income, No Assets
Now Known As
National Mortgage Licensing System
National Mortgage News
Notice of Incomplete Application
A mortgage that does not meet the purchase requirements of Fannie Mae or Freddie Mac.
Notice of Rejection may be used interchangeably with non-endorsement
A written agreement that evidences a debt and a promise to repay the loan, including the manner in which the loan shall be paid.
Notices of Proposed Rulemakings from Basel Committee
Nationally Recognized Statistical Rating Organization
Office of the Comptroller of the Currency
Other Comprehensive Income
Office of Foreign Assets Control
Originated Mortgage Servicing Rights
Operational Risk Management
One Time Close
Office of Thrift Supervision – now defunct.
Uniting and Strengthening American by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
Purchased Credit-Impaired Asset
Payment and Interest
Principal & Interest, plus Taxes & Insurance
Private Mortgage Insurance
Purchased Mortgage Servicing Rights
Point of Sale
Prior to Documents
Prior to Funding
Planned Unit Development
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.
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.
Section of RESPA dealing with Fee Disclosure
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)
Real Estate Owned
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.
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).
Rural Housing Service
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.
Residential Mortgage Loan
Right of Rescission
Right of Rescission
Right to Cancel
Risk Weight Average
Secure and Fair Enforcement for Mortgage Licensing
Software as a Service
Small Business Administration
US Securities and Exchange Commission
HOEPA High Fee Limit Calculation Requirements
Section of RESPA dealing with Referral Fee Payment
Special Flood Hazard Area
Single Family Residence
Systematically Important Financial Institution
Stated Income, Stated Assets
Secondary Marketing Executive
Service Release Premium
Statement on Standards for Accounting and Review Service
Simplified Supervisory Formula Approach
Refinancing that doesn’t require as much paperwork as a regular refinance, and is therefore quicker and less costly.
Transaction Coverage Rate
Troubled Debt Restructuring
Titan Lenders Corp
Third Party Origination
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.
Uniform Appraisal Dataset
Uniform Collateral Data Portal
Unfair, Deceptive or Abusive Acts and Practices
Undisclosed Debt Monitoring
Uniform Electronic Transactions Act
Upfront Mortgage Insurance Premium
Uniform Loan Delivery Dataset
Uniform Mortgage Data Program
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.
Unpaid Principal Balance
Uniform Residential Appraisal Report
US Department of Agriculture
Underwriter to Review
Department of Veterans Affairs
Veterans Administration Commitment of Reasonable Value
Veterans Administration Master Commitment of Reasonable Value
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.
Verification of Deposit
Verification of Employment
Verification of Mortgage
Verification of Rent
Verbal Verification of Employment
Weighted Average Coupon
Whole Loan Purchase Review
Wall Street Journal
Yield Spread Premium