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NMLS > Acronyms > Flashcards

Acronyms Flashcards

1
Q

TRID

A

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.

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2
Q

PUD

A

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.

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3
Q

LTV

A

Loan to Value. LTV is a ration 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 ration of 80%.

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4
Q

CLTV

A

Combined Loan to Value, calculated by dividing the amount of a 1st lean loan and the total line of credit on a HELOC or total amount of a 2nd lean loan by the purchase price or the appraised value of the property whichever is less.

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5
Q

TIN

A

Tax Identification Number

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6
Q

PMI

A

Private Mortgage Insurance. If you put down less than 20% 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.

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7
Q

UST

A

Uniform State Test 25 question addition to the National Test Component that replaced the majority of individual state test.

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8
Q

HMDA

A

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

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9
Q

FNMA

A

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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10
Q

AMCs

A

Appraisal Management Company. The middleman between appraisers and mortgage companies.

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11
Q

SISA

A

State income, Stated Asset. The loan only requires the borrower to state their income and assets, doesn’t require verification.

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12
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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13
Q

TIL

A

Truth in Lending. TIL is an important document you will receive from the lender or bank within three (3) 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.

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14
Q

SSN

A

Social Security Number

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15
Q

FHA

A

Federal Housing Administration. The Federal Government Agency that oversees the US Housing Market, FHA mortgages are guaranteed but eh Federal Government and offered by banks/lenders.

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16
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 borrowers’s gross income. Back end DTI is all debts divided by the borrowers’s gross income. (Example of debts: credit cards, car loans, student loans. Not included=cell phone bills and utilities)

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17
Q

FHMLC

A

Federal Housing Administration (Freddie Mac) a government sponsored unity created by Congress to increase access to mortgage. Mortgages offered under Freddie Mac guidelines are called “conforming” mortgages.

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18
Q

YSP

A

Yield Spread Premium. Paid to the broker for giving a borrower a higher interest rate on a loan in exchange for lower up front cost generally paid in origination fees, broker fees or discount points.

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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

IO

A

Interest Only, a payment that only covers the interest on the loan.

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21
Q

MARS

A

Mortgage Assistance Relief Services Rule

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22
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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23
Q

OCC

A

Office of the Comptroller of the Currency.

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24
Q

MMI

A

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

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25
Q

CSE

A

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

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26
Q

VOE

A

Verification of Employment. Used to verify that a borrower is employed.

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27
Q

IP

A

Investment Property, a non-owner occupied property that is rented out by the borrower.

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28
Q

MSA

A

Marketing Services Agreements

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29
Q

SRP

A

Service Release Premium, payment received by a lender on the sale of a closed mortgage loan to the secondary market.

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30
Q

AML

A

Anti-Money Laundering, law in place to require Financial institutions to prevent, detect and report money laundering activities.

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31
Q

APR

A

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

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32
Q

NMLS

A

Nationwide Mortgage Licensing System and Registry

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33
Q

APOR

A

Average Price Offer Rate. Rate used to determine whether a loan is high-cost or higher priced.

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34
Q

BSA

A

Bank Secrecy Act - requires suspicious activity reports (SARS) regarding suspicious activities.

35
Q

FHLMC

A

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

36
Q

HOEPA

A

Home Ownership and Quity Protection Act, regulates hight cost home loans.

37
Q

O/O

A

Owner-Occupied. A loan on a property owned by the owner.

38
Q

UFMIP

A

Upfront Mortgage Insurance Premium. Mortgage insurance premium pain in a lump sum upfront on an FHA loan.

39
Q

P&I

A

Principal and Interest. Principal and interest are the two elements that go towards repaying your loan.

40
Q

GNMA

A

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

41
Q

NINA

A

No Income No Asset Loan. A loan that doesn’t require income or assets.

42
Q

QM

A

Qualified Mortgage - a type of loan the requires the lender to make sure that borrower has the ability to repay the loan.

43
Q

SAR

A

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

44
Q

FinCEN

A

Financial Crimes Enforcement Network, the entity that a SAR would be reported to.

45
Q

HELOC

A

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

46
Q

HOA

A

Homeowners’s Association

47
Q

GFE

A

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.

48
Q

GLB

A

Gramm-Leach Bliley Act. Requires disclosure of information sharing policies.

49
Q

ECOA

A

Equal Credit Opportunity 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.

50
Q

NOO

A

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

51
Q

VOD

A

Verification of Deposit. Used to verify that X amount of money is in the borrowers bank account.

52
Q

HPA

A

Homeowners Protection Act, regulates the cancellation of private mortgage insurance.

53
Q

VA

A

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

54
Q

MERS

A

Mortgage Electronic Registration System

55
Q

NIV

A

No income verification, a loan that requires no income verification.

56
Q

COE

A

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

57
Q

CAIVRS

A

Credit Alert Verification Reporting System is a federal database of people who have delinquencies of any kind of federal debt.

58
Q

VOR

A

Verification of Rent. Used to verify that a borrower pays their rent on time.

59
Q

AUS

A

Automated Underwriting System. Example: LP and DU. Used to automatically underwrite conforming loans.

60
Q

COFI

A

Cost of Funds Index, index used on ARM loans (margin + index)

61
Q

HUD

A

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

62
Q

CFPB

A

Consumer Financial Protection Bureau. Federal regulator that regulates the mortgage industry. (The Boss)

63
Q

FACTA

A

Fair and Accurate Credit Transactions Act. Prevent identity theft, puts limits on information sharing. Amendment to FCRA.

64
Q

MLO

A

Mortgage Loan Originator

65
Q

DU

A

Desktop Underwriter. The AUS used by Fannie Mae.

66
Q

FFIEC

A

Federal Financial Institutions Examination Council. Collects and distributes HMDA information.

67
Q

PPP

A

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

68
Q

MBS

A

Mortgage Backed Security. These are investments instruments that are bundled by Fannie, Freddie and Ginnie Mae for sale on Wall Street.

69
Q

FDIC

A

Federal Deposit Insurance Corporation. Regulates depository institutions.

70
Q

HECM

A

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

71
Q

IRRRL

A

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

72
Q

GSE

A

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

73
Q

PITI

A

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 finale 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.

74
Q

ATR

A

Ability to Repay, 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)

75
Q

GPM

A

Graduated Payment Mortgage. This is a type of mortgage on which the payment starts low and rises over time.

76
Q

FICO

A

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

77
Q

LP

A

Loan Prospector. The AUS used by Freddie Mac.

78
Q

NOO

A

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

79
Q

MDIA

A

Mortgage Disclosure Improvement Act

80
Q

AARMR

A

American Association of Residential Mortgage Regulators. Responsible for the creation of the NMLS.

81
Q

HPML

A

Higher Priced Mortgage Loan.

82
Q

VOM

A

Verification of Mortgage. Used to verify that a borrower has X mortgage.

83
Q

CHARM

A

Consumer Handbook on Adjustable Rate Mortgages. Required disclosure on ARM loans to educate the consumer about the type of loan they are on.

84
Q

TLTV

A

Total Loan to Value. Total loan to value is calculated by dividing the sum of the 1st lean mortgage amount and the disbursed amount of a HELOC or 2nd lean by either the property’s purchase price or appraised value (whichever is less).

NMLS (1 decks)

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