Numeric
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
ACN
Advanced Change Notice
ACUMA
American Credit Union Mortgage Association
ADP
Automated Data Processing
AIR Table
Adjustable Interest Rate Table
AKA
Also Known As
AML/BSA Policy
Anti Money Laundering/Bank Secrecy Act
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.
AFR
Appraisal Field Review or A visual inspection of the property from the street, as well as the neighborhood surrounding the property.
APR
Annual Percentage Rate
ARM
Adjustable Rate Mortgage
ATIMA
As Their Interest May Appear
ATR
Ability to Repay
Audited Financials
CPA Prepared and verified as accurate
AUS
Automated underwriting system or 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
BM
Branch Manager
Bond (Surety)
Insurance policy to guarantee compliance, payment, or performance of an act.
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
CE
Continuing Education
CECL
Current Expected Credit Loss Model
Certified Financials
Balance Sheet, P&L and Statement of Cash Flow signed by a control officer of the company
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
COA
Certificate of Authority
COC
Change of Circumstance
COFI
Cost of Funds Index
Compliance
The state of being in accordance with established regulations, guidelines, specifications, etc.
Complied Financials
CPA Prepared with a Compilation Report
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 (Trade Name)
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 Omissions 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
ESB
Electronic Surety Bond
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
Fidelity Bond
Insurance policy that protect policyholder companies from wrongful acts committed by employees.
FIPS
Federal Information Processing Standard
FKA
Formerly Known As
FNMA
FannieMae
FOMC
Federal Open Market Committee
Foreign Qualification
Registration with a states secretary of state
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
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
London Interbank Offered Rate
LLPA
Loan Level Pricing Adjustments
LN
Loan
LO
Loan Officer
LOE
Letter of Explanation (sometimes LOX is used)
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
1. Master Conditional Commitment
2. Mortgage Credit Certificate
MCR
Mortgage Call Report
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.
MLO
Mortgage Loan Originator – A Licensed Individual, Authorized to Discuss Loan Terms and Take Applications
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
MU1
Company Filing
MU2
Individual Filing (Officers/QI/BM)
MU2 Association
Links company directly to a control officer/QI or BM
MU3
Branch Filing
MU4
Individual Filing
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
P&I
Payment and Interest
P&L
Profit and Loss
PE
Pre-Licensing Education
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.
QI/QE
Qualified Individual / Qualified Employee
R
RA
Registered Agent
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.
RI
Responsible Individual (AZ QI)
Reg X
Section of RESPA dealing with Fee Disclosure
Reg Z
Regulation Z 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).
R4P
Reverse For Purchase Loan
RESPRO
Rural Housing Service
RHS
Real Estate Services Provider’s Council
RML
Residential Mortgage Loan
ROR
Right of Rescission or the right to cancel a deal within three days of closing, at no cost.
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
SOS
Secretary Of State
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
TILA
Truth-in-Lending Act or 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.
TLC
Titan Lenders Corp
TPO
Third Party Origination
TRID
TILA RESPA Integrated Disclosures
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
Y
YSP
Yield Spread Premium