Mortgage Terms, Glossary, Acronyms & Dictionary
THE MORTGAGE INDUSTRY IS FULL OF COMMONLY UNFAMILIAR TERMS. TIME TO UNDERSTAND THEM!
Use the table below to learn more about mortgage acronyms and terms. In the first column you'll find the term or acronym and in the second column you'll find what it stands for. The third column begins the definition of the term/acronym. You may click on the term to delve deeper in the definition to expand your knowledge of mortgage terms and acronyms.
| TERM | FULL TERM | DEFINITION |
|---|---|---|
| 1003 | Loan Application | Form 1003, also known as, the Uniform Residential Loan Application,.... |
| 1040 | Personal Income Tax Return | Form 1040 is the standard personal federal income tax return form. It.... |
| AE | Account Executive | This is the person that is responsible for the relationship between two.... |
| ALTA | American Land Title Association | A national trade association made up of members who search, review, and.... |
| AMC | Appraisal Management Company | An Appraisal Management Company (AMC) works with a pool of independent.... |
| APP | Application | The standard application form is the Uniform Residential Loan Application.... |
| APR | Annual Percentage Rate | The amount a loan will cost the borrower over one year expressed in a.... |
| ARES | American Real Estate Society | ARES is a global organization of real estate leaders. They aim to foster.... |
| ARM | Adjustable Rate Mortgage | A type of mortgage that starts with a fixed interest rate but after a.... |
| ASA | American Society of Appraisers | What once was The American Society of Technical Appraisers (ASTA) and The.... |
| ASHI | American Society of Home Inspectors | ASHI was established in 1976 by a group of home inspectors in order to.... |
| ATR | Ability To Repay | Ability to Repay is a standard implemented in 2010 by the Consumer.... |
| AVM | Automated Valuation Model | The use of mathematical modeling to value properties by comparing the.... |
| BFP | Bona Fide Purchaser | A legal term used to refer to a innocent party who purchases property.... |
| BS | Bachelor of Science | An undergraduate degree awarded, by a university to a student, after the.... |
| CAIVRS | Credit Alert Verification Reporting System | CAIVRS is a database, maintained by HUD, that provides information to.... |
| CAM | Common Area Maintenance | The amount of additional rent charged to a tenant to maintain the common.... |
| CBWR | Co-Borrower | A secondary applicant who shares the responsibility of the mortgage. A.... |
| Closing Docs | Closing Docs | Signing the closing documents in front of a notary is one of the last steps.... |
| CLTV | Combined Loan-To-Value | The total percentage of all of the loans on the property to the value of.... |
| CO | Certificate of Occupancy | A document issued by the local government certifying that a building is in.... |
| COE | Certificate of Eligibility | A certificate of eligibility is needed when applying for a VA loan. The COE.... |
| CPL | Closing Protection Letter | A Closing Protection Letter is a contract between the lender and the title.... |
| CR | Credit Report | A record of an individuals past borrowing and repaying. This includes.... |
| Credit Score | Credit Score | A number between 300-850 used to indicate an individuals creditworthiness..... |
| CTC | Clear To Close | Clear to close is one of the final stages before your loan is funded. CTC.... |
| Disclosures | Disclosures | A series of documents disclosing terms of the loan that will be provided to.... |
| DTI | Debt to Income | The ratio of the borrowers gross income to the debt owed. The expense.... |
| FF | Funding Fee (VA) | A one time fee paid to the VA for the purchase of a loan. The amount of the.... |
| FHA | Federal Housing Administration | A government agency that is responsible for setting standards for.... |
| FICO Score | FICO Score | The most widely used credit score. The credit score is based solely off.... |
| FMV | Fair Market Value | The amount that the property would sell for if put up for sale. This is.... |
| FNMA | Federal National Mortgage Association (aka... | More commonly referred to as Fannie Mae. FNMA is a government-sponsored.... |
| FPM | Flexible-Payment Mortgage | A flexible-payment mortgage is a type of ARM that allows the borrower to.... |
| FRM | Fixed Rate Mortgage | A type of mortgage where the interest rate stays the same for the life of.... |
| FSBO | For Sale By Owner | A FSBO (pronounced fizz boe) is a property that is "For Sale By Owner". In.... |
| FTHB | First Time Home Buyer | An individual that has not previously had ownership of a house. an.... |
| GFE | Good Faith Estimate | A document, that should be provided to a borrower within 3 business days of.... |
| GRM | Gross Rent Multiplier | A way to quickly compare the value of income producing properties,.... |
| HEL | Home Equity Loan | A type of loan that allows borrowers to use the equity of their home as.... |
| HELOC | Home Equity Line of Credit | A revolving line of credit with an adjustable interest rate. The borrowers.... |
| HOA | Home Owner Association | A homeowner association is an corporation formed by a real estate.... |
| HOI | Homeowners Insurance | Homeowners insurance is a multiline property insurance policy for private.... |
| HUD | Department of Housing and Urban Development | The Department of Housing an Urban Development was created in 1965 as a.... |
| HUD1 | HUD1 | The statement that you receive, at closing, detailing all the costs and.... |
| HVAC | Heating, Ventilation and Air Conditioning | This is a system used to control indoor air temperatures and conditions..... |
| IDTBS | Initial Disclosures To Be Signed | IDTBS stands for Initial Disclosures To Be Signed. The Initial Disclosures.... |
| Initial Disclosures | Initial Disclosures | Initial disclosures are the preliminary disclosures that must be signed by.... |
| IO | Interest Only | A type of ARM where the entire payment goes toward interest and none goes.... |
| IP | Investment Property | A property that is purchased with the intention of using it as a source of.... |
| IRRRL | Interest Rate Reduction Refinance Loan | An Interest Rate Reduction Refinance Loan is one of two options when.... |
| LIBOR | London Interbank Offered Rate | Is the average interest rate as estimated by leading banks in London. This.... |
| LO | Loan Officer | Employees of lenders or brokers who find borrowers, take applications,.... |
| LTV | Loan To Value | The percentage of the mortgage to the purchase price or the appraised.... |
| MBA | Mortgage Bankers Association of America -... | A national organization the represents the real estate finance industry in.... |
| MBS | Mortgage Backed Security | A collection of mortgages sold to by the lender to individuals that the.... |
| MIP | Mortgage Insurance Premium | MIP is insurance paid for by the borrower of FHA loans. It is similar to.... |
| MLO | Mortgage Loan Originator | A MLO is a mortgage loan originator (also known as a loan officer). The MLO.... |
| MLS | Multiple Listing Service | An online database available to brokers and real estate agents that has.... |
| MPC | Master Planned Community | A large scale community that has is carefully planned far before its.... |
| NMLS | Natiowide Mortgage Licensing System | The NMLS is the nationwide mortgage licensing system. It is a single.... |
| NOO | Non Owner Occupied | An investment property that is not occupied by the mortgagor. Typically.... |
| Note | Mortgage Note | The mortgage note is a 2 to 5 page document that outlines the loan details..... |
| OBO | Or Best Offer | OBO is most commonly seen on advertisements of individuals selling goods.... |
| OIRO | Offers In the Region Of | When selling an item offers within a reasonable price range will be.... |
| PI | Principal and Interest | Principal is the outstanding balance of the loan. Interest is the amount,.... |
| PITI | Principal, Interest, Taxes and Insurance | The components of the total monthly housing expense. Principle is the.... |
| PMI | Private Mortgage Insurance | Private Mortgage Insurance (PMI) is paid by the borrower to protect the.... |
| PR | Primary Residence | A primary residence is a property an individual calls home. I f an.... |
| PR | Principal Reduction | Principal reduction is a program offered by Fannie Mae and Freddie Mac .... |
| Processing | Processing | Processing takes place after a loan officer receives and Compiles your file.... |
| PTD | Prior To Doc | Prior to Doc (PTD) or sometimes referred to as Prior to Documents are.... |
| PTF | Prior to Funding | Prior to Funding refers to conditions that come up after a underwriter.... |
| QM | Qualified Mortgage | A Qualified Mortgage is a Loan that meets the standards of the Ability to.... |
| REC | Real Estate Commission | A department or agency that oversees real estate license of real estate.... |
| REO | Real Estate Owned | Property that is owned by a bank or financial institution. Result of.... |
| REPC | Real Estate Purchase Contract | A REPC (pronounced REP C) is the Real Estate Purchase Contract. This.... |
| RESPA | Real Estate Settlement Practices Act | A federal law passed in 1974 to protect the borrower and seller by.... |
| RM | Relationship Manager | A Relationship Manager is responsible for ensuring positive and.... |
| SFD | Single Family Detached | A free-standing residential building intended to be occupied by one family..... |
| SP | Subject Property | A subject property is the property for which a borrower intends to get a.... |
| SRP | Service Release Premium | The commission that is made by a bank or other financial institution when a.... |
| SS | Social Security | Social Security or SS refers to a tax that is paid by workers. This money.... |
| SSA | Social Security Administration | The Social Security Administration is a U.S. Federal Agency. Their.... |
| SSN | Social Security Number | A Social Security number is a 9 digit number given to U.S. citizens as a.... |
| TIL | Truth In Lending | A Federal law implemented in 1968 by the Federal Reserve. The law dictates.... |
| UW | Underwriter | The underwriter is the person who examines the borrowers file and makes the.... |
| UW | Underwriting | The process in which all of the information collected in processing about.... |
| VA | Veteran Affairs | The VA is a cabinet-level agency that is dedicated to the well-being of.... |
| VOD | Verification of Deposit | A document prepared by an individuals bank verifying the current balance of.... |
| VOE | Verification of Employment | Form 1005 is to be filled out by the employer of the borrower to verify.... |
| VVOE | Verbal Verification of Employment | The process of confirming a potential borrowers employment via verbal.... |
| W2 | Wage and Tax Statement | A tax form provided by an employer to an employee at the end of the tax.... |
| YSP | Yield Spread Premium | Yield spread premium is the pricing associated with an interest rate. In.... |
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