Acronyms Flashcards
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.
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.
LTV
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%.
CLTV
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.
TIN
Tax Identification Number
PMI
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.
UST
Uniform State Test 25 question addition to the National Test Component that replaced the majority of individual state test.
HMDA
Home Mortgage Disclosure Act. Requires lenders to report their lending patterns geographically to prevent redlining and reverse redlining.
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.
AMCs
Appraisal Management Company. The middleman between appraisers and mortgage companies.
SISA
State income, Stated Asset. The loan only requires the borrower to state their income and assets, doesn’t require verification.
AFBA
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
TIL
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.
SSN
Social Security Number
FHA
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.
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 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)
FHMLC
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.
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 cost generally paid in origination fees, broker fees or discount points.
FCRA
Fair Credit Reporting Act. Regulates how consumer-reporting agencies use consumer information.
IO
Interest Only, a payment that only covers the interest on the loan.
MARS
Mortgage Assistance Relief Services Rule
ARM
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.
OCC
Office of the Comptroller of the Currency.
MMI
Monthly Mortgage Insurance. Mortgage insurance charged monthly on an FHA loan.
