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NMLS > Acronyms > Flashcards

Acronyms Flashcards

1
Q

AARMR

A

(America Association of Residential Mortgage Regulators): Responsible for the creation of the National Mortgage Licensing System (NMLS).

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2
Q

AFBA

A

(Affiliated Business Arrangement): 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 Real Estate Settlement Procedures Act (RESPA).

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3
Q

AMC

A

AMC (Appraisal Management Company): The middleman between appraisers and mortgage companies.

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4
Q

AML

A

AML (Anti-Money Laundering): A law in place to require financial institutions to prevent, detect and report money laundering activities

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5
Q

APOR

A

APOR (Average Prime Offer Rate): Rate used to determine whether a loan is high-cost or higher priced.

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6
Q

APR

A

APR (Annual Percentage Rate): The APR calculates the annual percentage rate you would pay on the loan once the costs of getting the loan are factored in.

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7
Q

ARM

A

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

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8
Q

ATR

A

ATR (Ability to Repay): The 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.

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9
Q

AUS

A

AUS (Automated Underwriting System): Example: Used to automatically underwrite conforming loans.

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10
Q

BSA

A

BSA (Bank Secrecy Act): Requires Suspicious Activity Reports (SARS) to be filed regarding dubious activities.

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11
Q

CAIVRS

A

CAIVRS (Credit Alert Verification Reporting System): A federal database of people who have delinquencies
on any kind of federal debt.

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12
Q

CFPB

A

CFPB (Consumer Financial Protection Bureau): The federal entity that regulates the entire mortgage industry.

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13
Q

CHARM

A

CHARM (Consumer Handbook on Adjustable Rate Mortgages): Required disclosure on ARM loans
to educate the consumer about the type of loan they have.

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14
Q

CLTV

A

CLTV (Combined Loan to Value): This ratio is calculated by dividing the amount of a 1st lien loan and the total
line of credit on a Home Equity Line of Credit (HELOC) or total amount of a 2nd lien loan by the purchase
price or the appraised value of the property, whichever is less.

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15
Q

COE

A

COE (Certificate of Eligibility): Required document on VA loans to determine the amount of eligibility
that veteran borrower has.

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16
Q

COFI

A

COFI (Cost of Funds Index): Index used on ARM loans (margin + index).

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17
Q

DTI

A

DTI (Debt to Income): Two ratios, front end and back end DTI. Front end DTI (housing expense)
is determined by dividing the amount of housing 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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18
Q

DU

A

DU (Desktop Underwriter): The AUS used by Fannie Mae.

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19
Q

ECOA

A

ECOA (Equal Credit Opportunity Act): A law in the US that makes it illegal for any creditor to discriminate
against an applicant based on race, religion, national origin, sex, etc.

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20
Q

FACTA

A

(Fair and Accurate Credit Transactions Act): Prevents identity theft, puts limits on information sharing.
Amendment to FCRA.

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21
Q

FCRA

A

FCRA (Fair Credit Reporting Act): Regulates how consumer-reporting agencies use consumer
information.

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22
Q

FDIC

A

FDIC (Federal Deposit Insurance Corporation): Regulates depository institutions.

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23
Q

FFIEC

A

FFIEC (Federal Financial Institutions Examination Council): Collects and distributes HMDA
information.

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24
Q

FHA

A

FHA (Federal Housing Administration): The Federal Government Agency that oversees the US Housing Market.
FHA mortgages are guaranteed by the Federal Government and offered by banks/lenders.

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25
Q

FHLMC

A

FHLMC (Federal Home Loan Mortgage Corporation): A corporation authorized by Congress to
provide a secondary market for residential mortgages.

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26
Q

Freddie Mac

A 
Freddie Mac (another name for the Federal Home Loan Mortgage Corporation): A government sponsored
entity created by Congress to increase access to mortgage. Mortgages offered under Freddie Mac guidelines are
called “conforming” mortgages.
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27
Q

FICO

A

FICO (Fair Isaac Corporation): The company that created the industry standard credit scores used by
almost all lenders. The FICO score is a numerical summary of the information in your credit reports
that represents your potential credit risk.

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28
Q

FinCEN

A

FinCEN (Financial Crimes Enforcement Network): the entity that a SAR would be reported to.

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29
Q

FNMA

A

FNMA (Federal National Mortgage Association (Fannie Mae)): a government sponsored entity created
by Congress to increase access to mortgages. Mortgages offered under Fannie Mae guidelines are
called “conforming” mortgages.

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30
Q

FTC:

A

FTC: Federal Trade Commission

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31
Q

GFE

A

GFE (Good Faith Estimate): A GFE is a document that the lender is required to give a prospective
borrower when they apply for a loan. The GFE is an estimate of all closing costs and fees required for
the proposed mortgage loan.

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32
Q

GLBA

A

GLBA (Gramm-Leach Bliley Act): Requires disclosure of information sharing policies.

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33
Q

GNMA:

A

GNMA: Ginnie Mae, Government National Mortgage Association. (the Fannie and Freddie of government
lending)

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34
Q

GPM

A

GPM (Graduated Payment Mortgage): With this type of mortgage the payment starts low and rises over time.

35
Q

GSE:

A

GSE: Government Sponsored Enterprise is a financial services corporation created by the US Congress
(Fannie and Freddie Mac)

36
Q

HARP

A

HARP (Home Affordable Refinance Program): HARP is a refinance program that allows eligible borrowers,
with little to no equity in their homes, to take advantage of low interest rates and other refinancing benefits.

37
Q

HECM

A

HECM (Home Equity Conversion Mortgage): Loan for borrowers 62 years and older. Uses the equity
in their home to create cash disbursements to the borrower.

38
Q

HELOC

A

HELOC (Home Equity Line of Credit): HELOC is a loan in which the lender agrees to lend a maximum
amount within an agreed loan term, where the collateral is the borrower’s equity in his or her house.

39
Q

HMDA

A

HMDA (Home Mortgage Disclosure Act): Requires lenders to report their lending patterns geographically
to prevent redlining and reverse redlining.

40
Q

HOA:

A

HOA: Homeowner’s Association

41
Q

HOEPA

A

HOEPA (Home Ownership and Equity Protection Act): Regulates high cost home loans.

42
Q

HPA

A

HPA (Homeowners Protection Act): Regulates the cancellation of private mortgage insurance.

43
Q

HPML:

A

HPML: Higher Priced Mortgage Loan

44
Q

HUD

A

HUD (U.S. Department of Housing and Urban Development): HUD is the primary housing and lending
regulatory authority in the U.S.

45
Q

IO

A

IO (Interest Only): a payment that only covers the interest on the loan.

46
Q

IP

A

IP (Investment Property): a non-owner occupied property that is rented out by the borrower

47
Q

IRRRL:

A

IRRRL: VA Interest Rate Reduction Refinance Loan. This refinance loan allows you to lower your
interest rate on an existing VA home loan.

48
Q

LP:

A

LP: Loan Prospector. The AUS used by Freddie Mac.

49
Q

LTV

A

LTV (Loan-to-Value): 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 percent.

50
Q

MARS:

A

MARS: Mortgage Assistance Relief Services Rule

51
Q

MBS

A

MBS (Mortgage Backed Security): These are investment instruments that are bundled by Fannie,
Freddie and Ginnie Mae for sale on Wall Street.

52
Q

MDIA:

A

MDIA: Mortgage Disclosure Improvement Act

53
Q

MERS:

A

MERS: Mortgage Electronic Registration System

54
Q

MLO:

A

MLO: Mortgage Loan Originator

55
Q

MMI:

A

MMI: Monthly Mortgage Insurance. Mortgage insurance charged monthly on an FHA loan.

56
Q

MSA:

A

MSA: Marketing Services Agreements

57
Q

NINA:

A

NINA: No income No Asset loan. A loan that doesn’t require income or assets.

58
Q

NIV:

A

NIV: No income verification, a loan that requires no income verification

59
Q

NMLS:

A

NMLS: Nationwide Mortgage Licensing System and Registry

60
Q

NOO

A

NOO (Non-owner occupied): A loan on a property not occupied by the owner. (investment property, vacation/
second home).

61
Q

O/O

A

O/O (Owner-occupied): A loan on a property owned by the owner.

62
Q

OCC:

A

OCC: Office of the Comptroller of the Currency

63
Q

P&I:

A

P&I: Principal and Interest. Principal and interest are the two elements that go towards repaying your
loan.

64
Q

PITI

A

PITI (Principle, Interest, Taxes and Insurance): 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 homeowner’s
insurance that your lender requires you to have.

65
Q

PMI

A

PMI (Private Mortgage Insurance): If you put down less than 20 percent most lenders or banks
require you to have private mortgage insurance. This can be put into your monthly mortgage payment
or calculated into your rate.

66
Q

PPP

A

PPP (Prepayment Penalty): A penalty charged to a borrower if they pay their loan in full before the end of its
term.

67
Q

PUD

A

PUD (Planned Urban Development): A type of development is designed real estate, usually a combination
of housing, recreation, commercial and industrial parks all within one development or
subdivision.

68
Q

QM

A

QM (Qualified Mortgage): A type of loan that requires the lender to make sure that borrower can repay the
loan

69
Q

SAR

A

SAR (Suspicious Activity Report): Report required to be made to FinCEN under the Bank Secrecy Act
(BSA) when there is a suspicion of money laundering or fraud.

70
Q

SISA

A

SISA (Stated Income): Stated Asset. The loan only requires the borrower to state their income and assets,
doesn’t require verification.

71
Q

SRP

A

SRP (Service Release Premium): payment received by a lender on the sale of a closed mortgage loan
to the secondary market

72
Q

SSN:

A

SSN: Social Security Number

73
Q

TIL

A

TIL (Truth in Lending): 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.

74
Q

TIN:

A

TIN: Tax Identification Number

75
Q

TLTV

A

TLTV (Total Loan to Value): 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)

76
Q

TRID

A

TRID (TILA-RESPA Integrated Disclosure Rule): New legislation as of October 2015, requires the Loan Estimate
and Closing Disclosure, replaces the GFE, TIL and HUD-1 disclosures.

77
Q

UFMIP

A

UFMIP (Upfront Mortgage Insurance Premium): Mortgage insurance premium paid in a lump sum
upfront on an FHA loan.

78
Q

UST

A

UST (Uniform State Test): 25 question addition to the National Test Component that replaced most individual
state tests.

79
Q

VA

A

VA (Department of Veterans Affairs): This federal government agency guarantees mortgages that assist
eligible veterans in buying homes.

80
Q

VOD

A

VOD (Verification of Deposit): Used to verify that X amount of money is in a borrower’s bank account.

81
Q

VOE

A

VOE (Verification of Employment): Used to verify that a borrower is employed.

82
Q

VOM

A

VOM (Verification of Mortgage): Used to verify that a borrower has X mortgage.

83
Q

VOR

A

VOR (Verification of Rent): Used to verify that a borrower pays rent and pays their rent on time.

84
Q

YSP

A

YSP (Yield Spread Premium): Paid to the broker for giving a borrower a higher interest rate on a loan
in exchange for lower up-front costs generally paid in origination fees, broker fees or discount points

NMLS (1 decks)

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