mortgage terms

Question 1

ACH

Answer 1

Automated Clearing House

Question 2

API

Answer 2

Application Programming Interface

Question 3

APR

Answer 3

Annual Percentage Rate

Question 4

ABL

Answer 4

Asset Based Loan

Question 5

ARM

Answer 5

Adjust Rate Mortgage

Question 6

AUS

Answer 6

Automated Underwriting System

Question 7

CD

Answer 7

Closing Disclosure

Question 8

Comps

Answer 8

Comparables

Question 9

CSS

Answer 9

Cascading Style Sheets

Question 10

CRM

Answer 10

Customer Relationship Manager

Question 11

DU

Answer 11

Desktop Underwriter

Question 12

DTI

Answer 12

Debt to Income

Question 13

EBITDA

Answer 13

Earning before interest, taxes, depreciation, and amortization

Question 14

ECOA

Answer 14

Equal Credit Opportunity Act

Question 15

FHA Loan

Answer 15

Federal Housing Loan

Question 16

What is a FHA?

Answer 16

Loan insured by federal administration which protects lenders against loses

Question 17

What is ECOA?

Answer 17

law that requires lenders to not pass bias based on race, color, religion, origin, age, sex, or marital status

Question 18

What is EBITDA?

Answer 18

A measure of company’s overall financial performance

Question 19

What is DTI?

Answer 19

Ratio of gross monthly income used to pay monthly debt

Question 20

What is DU?

Answer 20

AUS developed by Fannie Mae

Question 21

What is CRM?

Answer 21

for lead development and post close communication

Question 22

What is CSS?

Answer 22

A script that allows for editing the presentation of code

Question 23

What are COMPS?

Answer 23

properties that have sold the same relative size and value in the area

Question 24

What is a CD?

Answer 24

5 page document providing final loan details

Question 25

What is an AUS?

Answer 25

computer generated loan decision matrix

Question 26

What is an ARM?

Answer 26

periodically adjusts rate based on lenders costs changes

Question 27

What is an APR

Answer 27

Interest rate charged as the cost of a loan

Question 28

What is an API

Answer 28

connection for software integrations

Question 29

What is an ACH?

Answer 29

Type of payment

Question 30

FNMA 3.2/3.4

Answer 30

Fannie Mae (application file)

Question 31

HELOC

Answer 31

Home Equity Line of Credit

Question 32

What does HELOC do?

Answer 32

Leverages an individual's equity in their home to provide a loan

Question 33

LE

Answer 33

Loan Estimate

Question 34

What is an LE

Answer 34

Disclosure to help borrowers understand key loan terms

Question 35

LO

Answer 35

Loan officer or Loan Originator

Question 36

What is an LO

Answer 36

Job title given to individuals who hold a license to assist borrowers in the process of applying for a loan

Question 37

LOC

Answer 37

Line of Credit

Question 38

What is an LOC

Answer 38

Amount of credit extended to a borrower

Question 39

LOS

Answer 39

Loan Origination System

Question 40

What is an LOS

Answer 40

System of record that is the engine behind the loan process

Question 41

LSU

Answer 41

Loan Status Update

Question 42

What is an LSU

Answer 42

State (AZ) specific form that provides a progress report to sellers/ buyer's agents

Question 43

LTD

Answer 43

Long-term Debt

Question 44

What is LTD?

Answer 44

Debts that are due more than one year in the future

Question 45

LTV

Answer 45

Loan-to-value

Question 46

What is the LTV?

Answer 46

Ratio used to asses lending risk, higher LTV means riskier loans

Question 47

MLO

Answer 47

Mortgage Loan Originator/Officer

Question 48

What is a MLO

Answer 48

More exclusive term then LO, MLO accepts mortgage applications and negotiates terms whereas is defined by someone who does either of those activities

Question 49

PITI

Answer 49

Principal, Interest, Taxes, Insurance

Question 50

What is PITI

Answer 50

Total monthly housing expense

Question 51

Points

Answer 51

amounts paid to the lender to buy down interest rate, one point= 1% Ex. 2 points on a $100,000 loan would cost $2,000

Question 52

PQF

Answer 52

Pre-Qualification Form

Question 53

What is the PFQ?

Answer 53

State (TX) specific form that is the initial evaluation of creditworthiness

Question 54

PPE

Answer 54

Product & Pricing Engine

Question 55

What is PPE

Answer 55

Tool to find the best product borrowers are eligible for

Question 56

RESPA

Answer 56

Real Estate Settlement Procedures Act

Question 57

What is RESPA

Answer 57

Protection law that requires advance disclosure of settlement costs to buyer/ seller

Question 58

Rate Lock

Answer 58

Commitment issued from a lender to a borrower for a specific | interest rate for a specific period of time

Question 59

URLA

Answer 59

Uniform Residential Loan Application | ■ (Updated Fannie Mae format)

Question 60

USDA Loan

Answer 60

United States Department of Agriculture Loan | ■ (Government loans to low-income, rural Americans)

Question 61

Underwriting

Answer 61

Lender process of deciding whether to make a loan and helps | match a rate based on associated risk)

Question 62

VA Loan

Answer 62

Veterans Association Loan

Question 63

VoA

Answer 63

Verification of Assets

Question 64

What is VoE

Answer 64

Verification of Employment

Question 65

VoI

Answer 65

Verification of Income | -ability to pay back a loan