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Mortgage Acronyms Flashcards

(80 cards)

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1
Q

AARMR

A

America Association of Residential Mortgage Regulators

Responsible for the creation of the NMLS.

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2
Q

AFBA

A

Affiliated Business Arrangement

This is an arrangement between two different companies involved in providing services in the closing of a real estate transaction. there can be no ownership interest. Requires disclosure under RESPA.

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3
Q

AMCs

A

Appraisal Management Company

The middleman between appraisers and mortgage companies.

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4
Q

APOR

A

Average Prime Offer Rate

Rate used to determine wether a loan is high-cost or higher priced.

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5
Q

ARM

A

Adjustable Rate Mortgage

An Adjustable Rate Mortgage is a mortgage that will have a fixed rate for a set period of time and then the rate is adjusted. The rate will normally be adjusted once or twice a year.

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6
Q

ATR

A

Abiltity to Repay

Is a rule that requires lenders to determine whether a borrower has the ability to repay their loan and requires verification of the information provided to prove the ability to repay (under QM).

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7
Q

AUS

A

Automated Underwriting System

Example: LP an DU. Used to automatically underwrite conforming loans.

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8
Q

BSA

A

Bank Secrecy Act

Requires suspicious acivity reports (SARS) regarding suspicious activities.

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9
Q

CAIVRS

A

Credit Alert Verification Reporting System

Is a federal database of people who have delinquencies on any kind of federal debt.

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10
Q

CFPB

A

Consumer Financial Protection Bureau

Federal regulator that regulates the mortgage industry. (The Boss)

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11
Q

CHARM

A

Consumer Handbook on Adjustbalbe Rate Mortgages

Required disclosure on ARM loans to Educate the consumer about the type of loan they are on.

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12
Q

CLTV

A

Combined Loan to Value

Calculated by dividing the amount of a 1st lien loan and the total line of the cred on a HELOC or total amount of 2nd lien loan by the purchase price or the appraised value of the property whichever is less.

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13
Q

COE

A

Certificate of Eligibility

Required document on VA loans to determine the amount of eligibility that veteran borrower has.

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14
Q

COFI

A

Cost of Funds Index

Index used on ARM loans (margin + index).

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15
Q

DTI

A

Debt to Income

two ratios, front end and back end DTI. Front end DTI (housing expense) is determined by dividing the amount of housing divided by the borrower’s gross income. Back end DTI is all debts divided by the borrower’s gross income. (Examples of debts: credit cards, car loans, student loans. Not included = cell phone bills and utilities)

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16
Q

DU

A

Desktop Underwriter

The AUS used by Fannie Mae.

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17
Q

ECOA

A

Equal Credit Oppurtunity Act

A law in the U.S. that makes it illegal for any creditor to discriminate against any applicant on the basis of race, religion, national origin, sex, etc.

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18
Q

FACTA

A

Fair and Accurate Credit Transactions Act

Prevent identity theft, puts limits on information sharing. Amendment to FCRA.

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19
Q

FCRA

A

Fair Credit Reporting Act

Regulates how consumer-reporting agencies use consumer information.

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20
Q

FDIC

A

Federal Deposit Insurance Corporation

Regulates depository institutions.

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21
Q

FFIEC

A

Federal Financial Institutions Examination Council

Collects and distributes HMDA information.

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22
Q

FHA

A

Federal Housing Administration

The Federal Government Agency that oversees the US Housing Market. FHA morgages are guarnteed by the Federal Government and offered by banks/lenders.

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23
Q

FHLMC

A

Federal Home Loan Morgage Corparation

A corporation authroized by congress to provide a secondary market for residential mortgages.

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24
Q

FICO

A

Fair Isaac Corportation

The company that created the industry standard credit scores used by almost all lenders. The FICO score is a mumeric summary of the information in y our credit reports that represents your potential credit risk.

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25
FinCEN
Financial Crimes Enforcement Network ## Footnote The entity that a SAR would be reported to.
26
FNMA
Federal Mortgage Association (Fannie Mae) ## Footnote A government sponsored entity created by Congress to increase access to mortgages. Mortgages offered under Fannie Mae guidelines are called "conforming" mortgages.
27
FTC
Federal Trade Commision
28
GFE
Good Faith Estimate ## Footnote A GFE is a document that the lender is required to give a prospective borrwer when they apply for a loan. The GFE is an estimate of all closing costs and fees required for the proposed mortgage loan.
29
GLB
Gramm-Leach Bliley Act ## Footnote Requires disclosure of information sharing policies.
30
GNMA
Government National Mortgage Asssociation (Ginnie Mae) ## Footnote The Fannie and Freddie of government lending.
31
GPM
Graduated Payment Mortgage ## Footnote This is a type of mortgage on which the payment starts low and rises over time
32
GSE
Government Sponsored Enterprise ## Footnote Is a financial services corportation created by the us congress (Fannie and Freddie Mac)
33
HARP
Home Affordable Refinance Program ## Footnote HARP is a refinance program that allows eligible borrowers, with little to no
34
HECM
Home Equity Conversion Mortgage ## Footnote Loan for borrowers 62 years and older. Usese the equity in his or her house.
35
HELOC
Home Equity Line of Credit ## Footnote HELOC is a loan in which the lender agrees to lend a maximum amount within an agreed loan term, where the collateral is the borrowers equity in his or her house.
36
HMDA
Home Mortgage Disclosure Act ## Footnote Requires lenders to report their lending patterns geographically to prevent redlining and reverse redlining.
37
HOA
Home Owners Association
38
HOEPA
Home Owners Equity Protection Act ## Footnote Regulates high cost home loans.
39
HPA
Homeowners Protection Act ## Footnote Regulates the cancellation of private mortgage insurance.
40
HPML
Higher Priced Mortgage Loan
41
HUD
U.S. Department of Housing and Urban Devolopement ## Footnote HUD is the primary housing and lending regulatory authority in the U.S.
42
IO
Interest Only ## Footnote A payment that only covers the interest on the loan.
43
IP
Investment Property ## Footnote A non-owner occupied property that is rented out by the borrower.
44
IRRRL
VA Interest Rate Reduction Refinance Loan ## Footnote This refinance loan allows you to lower your interest rate on an existing VA home loan.
45
LP
Loan Prospector ## Footnote The AUS used by Freddie Mac.
46
LTV
Loan-to-Value ## Footnote LTV is a ratio used by the lender that divides the amount of money borrowed by the appraised value of the home expressed as a percentage. For example, a borrower may purchase a home appraised at $200,000 with a down payment of $40,000. This means he has a loan-to-value ratio of 80%.
47
MARS
Mortgage Assistance Relief Services Rule
48
MBS
Mortgage Backed Security ## Footnote These are investment instruments that are bundled by Fannie, Freddie and GInnie Mae for sale on Wall Street.
49
MDIA
Mortgage Disclosure Improvement Act
50
MERS
Mortgage Electronic Registration System
51
MLO
Mortgage Loan Originator
52
MMI
Monthly Mortgage Insurance ## Footnote Morgage insurance charged monthly on a FHA loan.
53
MSA
Marketing Services Agreement
54
NINA
No income No Asset Loan ## Footnote A loan that does not require income or assets.
55
NIV
No income verification ## Footnote A loan that does not requre no income verification.
56
NMLS
Nationwide Multistate Licensing System and Registry
57
NOO
Non-owner occupied ## Footnote A loan on a property not occupied by the owner. (investment property, vacation/second home)
58
O/O
Owner-Occupied ## Footnote A loan on a property owned by the owner.
59
OCC
Office of the Comptroller of the Currency
60
P&I
Principal and Interest ## Footnote Principal and interest are the two elements that go towards repaying your loan.
61
PITI
Principle, Interest, Taxes and Insurance ## Footnote These are the four main components of your monthly mortgage payment. Principal is the loan amount. Interest is the rate at which the finance charge you pay for borrowing is calculated. taxes are the real estate taxes for which you are responsible, and insurance is the homeowners insurance that your lender requires you to have.
62
PMI
Private Mortgage Insurance ## Footnote If you put down less thatn 20% most lenders or banks require you to have private mortgage insurance. This can be put into your monthly morgage payment or calculated into your rate.
63
PPP
Prepayment Penalty ## Footnote A penalty charged to a borrower if they pay their loan in full before the end of its term.
64
PUD
Planned Urban Development ## Footnote A type of development is designed real estate, usually a combination of housing, recreation, commercial and industrial parks all within one development or subdivision.
65
QM
Qualified Mortgage ## Footnote A type of loan that requires the lender to make sure that borrower has the ability to repay the loan.
66
SAR
Suspicious Activity Report ## Footnote Report required to be made to FinCEN under the Bank Securtiy Act (BSA) when there is a suspicion of money laudnering or fraud.
67
SISA
Stated income, Stated Asset ## Footnote The loan only requires the borrower to state their income and assets, does not require verification.
68
SRP
Service Release Premium ## Footnote Payment received by a lender on the sale of closed mortgage loan to the secondary market.
69
SSN
Social Security Number
70
TIL
Truth in Lending ## Footnote TIL is an important document you will receive from the lender or bank within three days of your application. Within the document certain disclosures are set forth. Such as, finance charges, annual percentage rate (APR), amount financed, total of payments, and total sales price will be disclosed.
71
TIN
Tax Identification Number
72
TLTV
Total Loan to Value ## Footnote Total loan to value is calculated by dividing the sum of the 1st lien mortgage amount and the disbursed amount of a HELOC or 2nd lien by either the property's purchase price or appraised value (whichever is less).
73
TRID
TILA-RESPA Integrated Disclosure Rule ## Footnote New legislation as of October 2015, requires the Loan Estimate and Closing Disclosure, replaces the GFE, TIL and HUD-1 Disclosures.
74
UFMIP
Upfront Mortgage Insurance Premium ## Footnote Mortgage insurance premium paid in a lump sum upfront on an FHA loan.
75
UST
Uniform State Test ## Footnote 25 question addition to the Nationaly Test Component that reploaced the majority of individual state test.
76
VA
Department of Veteran Affairs ## Footnote This federal government agency guarnatees mortgages that assist eligible verterans in buying homes.
77
VOD
Verification of Deposit ## Footnote Used to verify that X amount of money is in a borrower's bank account.
78
VOE
Verification of Employment ## Footnote Used to verify that a borrower is employed.
79
VOM
Verification of Mortgage ## Footnote Used to verify that a borrower has X mortgage.
80
VOR
Verification of Rent ## Footnote Used to verify that a borrower pays rent and pays their rent on time.

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