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COMMON MORTGAGE ACRONYMS
ACP
Automated Clearing House - Federal Reserve Clears Automated Payments
ADP
Automatic Data Processing
ALTA
American Land Title Association (Lenders require this type of policy with extended coverage)
APR
Annual Percentage Rate (Cost of credit disclosed in the form of rate, on TIL)
ARM
Adjustable Rate Mortgage - mortgage instrument; interest rate changes periodically during life of loan
CAIVRS
Credit Alert Interactive Voice Response System
CBA
Controlled Business Arrangement
CHBP
Community Home Buyer's Program
CHUMS
Computerized Home Underwriting System
CMO
Collaterized Mortgage Obligation
COFI
Cost of Funds Index - Most commonly used in description of loans based on 11th Federal Home Loan
Bank Board Members cost of funds (rate paid on deposits)
CRA
Community Re-investment Act - requires financial institutions to reinvest in their own communities
CRV
Certificate of Reasonable Value - VA Appraisal
DE
Direct Endorsement underwriter - FHA approved underwriter
ECOA
Equal Credit Opportunity Act - Regulation B
EMD
Earnest Money Deposit - Deposit on Property to indicate serious intent
FCRA
Fair Credit Reporting Act
FDIC
Federal Deposit Insurance Company
FHA
Federal Housing Administration - insures loans against loss trhough default and foreclosure
FHLBB
Federal Home Loan Bank Board
FHLMC
Federal Home Loan Mortgage Corporation - Secondary Market Investor
FIRREA
Financial Institutiojns Reform, Recovery and Enforcement Acot of 1989- Responsible for formation of RTC;
regualtes financial institutions, restricts appraisal procdure
FNMA
Federal National Mortgage Association - Secondary Market Entity
FRB
Federal Reserve Boeard ("Fed")
FTC
Federal Trade Commission
GEM
Growing Equity Mortgage - mortgage instrument; an accelerated payment schedule starts with
30 year P & I, but pays off loan in 15 - 18 years
GFE
Good Faith Estimate - disclose settlement costs on loan`
GNMA
Government National Association Secondary Marketing entity; securitizes government loans for Bond Market
GPM
Graduated Payment Mortgage - flexible payment mortgage with scheduled negative amortization
HECM
Home Equity Conversion Mortgage
HOA
Home Owners Association
HOLC
Home-Owners Loan Corportation
HOW
Home Owner Warranty - Builder warranty
HUD
Department of Housing and Urban Development, federal department under which FHA functions
HMDA
Home Mortgage Disclosure Act- prohibits "redlining"
IRRRL
Interest Rate Reduction Refiancing Loan
LDP
Limited Denial of Participation
LIBOR
London Interbank Offered Rate - rate at which banks in foreign markets lend
LTV
Loan-to-Value Ratio - ratio of mortgage amount / value of real property
MCAW
Mortgage Credit Analysis Worksheet
MCRV
Master Certificate of Reasonable Value
MAI
Member, Appraisal Instistute - highly respected appraisal designation
MBA
Mortgage Bankers Association
MC
Mortgage Condition - Seen on FHA loan Approvals
MIC
Mortgage Insurance Certificate - issued by HUD as evidence of mortgage insurance
MIP
Mortgage Insurance Premium - annual premium charged by FHA for insuring loan; collected monthly from borrower, with mortage
payment
MSA
Metropolitan Statistical Area
OCC
Office of the Comptroller of Currency - Regualtor of Banks in addition to FDIC and FRB
PITI
Principle, Interest, Taxes and Insurance - monthly mortgage payment
P & L
Profit and Loss Statement
PLC
Personal Line of Credit
PMI
Private Mortgage Insurance - insures conventional loans, as FHA does for government loans; private industry
PUD
Planned Unit Development
RAM
Reverse Annuity Mortgage. mortgage investment; Lender makes monthly payments to borrower
REM
Rapid Equity Mortgage, mortgage instrument; Bi-weekly payments pay off loan in 16 years
with considerable interest savings
RESPA
Real Estate Settlement Procedures Act, the reason for Good Faith Estimate of Closing Costs,
HUD-I Settlement Statement, and transfer of Servicing Disclosure
RTC
Resolution Trust Corporation
TIL
Truth-in-Lending disclosure
URLA
Uniform in Residential Loan Application
UFMIP
Up Front Mortgage Insurance Premium, fee charged by FHA at time of loan closing for
insuring loan, paid by borrower
URAR
Uniform Residential Appraisal Report, conventional appraisal report form
VA
Department of Veteran Affiairs, Guarantees loans for veterans
VOD
Verification of Deposit
VOE
Verification of Employment
VOM
Verification of Mortgage
VOR
Verification of Rent
ACP
Automated Clearing House - Federal Reserve Clears Automated Payments
ADP
Automatic Data Processing
ALTA
American Land Title Association (Lenders require this type of policy with extended coverage)
APR
Annual Percentage Rate (Cost of credit disclosed in the form of rate, on TIL)
ARM
Adjustable Rate Mortgage - mortgage instrument; interest rate changes periodically during life of loan
CAIVRS
Credit Alert Interactive Voice Response System
CBA
Controlled Business Arrangement
CHBP
Community Home Buyer's Program
CHUMS
Computerized Home Underwriting System
CMO
Collaterized Mortgage Obligation
COFI
Cost of Funds Index - Most commonly used in description of loans based on 11th Federal Home Loan
Bank Board Members cost of funds (rate paid on deposits)
CRA
Community Re-investment Act - requires financial institutions to reinvest in their own communities
CRV
Certificate of Reasonable Value - VA Appraisal
DE
Direct Endorsement underwriter - FHA approved underwriter
ECOA
Equal Credit Opportunity Act - Regulation B
EMD
Earnest Money Deposit - Deposit on Property to indicate serious intent
FCRA
Fair Credit Reporting Act
FDIC
Federal Deposit Insurance Company
FHA
Federal Housing Administration - insures loans against loss trhough default and foreclosure
FHLBB
Federal Home Loan Bank Board
FHLMC
Federal Home Loan Mortgage Corporation - Secondary Market Investor
FIRREA
Financial Institutiojns Reform, Recovery and Enforcement Acot of 1989- Responsible for formation of RTC;
regualtes financial institutions, restricts appraisal procdure
FNMA
Federal National Mortgage Association - Secondary Market Entity
FRB
Federal Reserve Boeard ("Fed")
FTC
Federal Trade Commission
GEM
Growing Equity Mortgage - mortgage instrument; an accelerated payment schedule starts with
30 year P & I, but pays off loan in 15 - 18 years
GFE
Good Faith Estimate - disclose settlement costs on loan`
GNMA
Government National Association Secondary Marketing entity; securitizes government loans for Bond Market
GPM
Graduated Payment Mortgage - flexible payment mortgage with scheduled negative amortization
HECM
Home Equity Conversion Mortgage
HOA
Home Owners Association
HOLC
Home-Owners Loan Corportation
HOW
Home Owner Warranty - Builder warranty
HUD
Department of Housing and Urban Development, federal department under which FHA functions
HMDA
Home Mortgage Disclosure Act- prohibits "redlining"
IRRRL
Interest Rate Reduction Refiancing Loan
LDP
Limited Denial of Participation
LIBOR
London Interbank Offered Rate - rate at which banks in foreign markets lend
LTV
Loan-to-Value Ratio - ratio of mortgage amount / value of real property
MCAW
Mortgage Credit Analysis Worksheet
MCRV
Master Certificate of Reasonable Value
MAI
Member, Appraisal Instistute - highly respected appraisal designation
MBA
Mortgage Bankers Association
MC
Mortgage Condition - Seen on FHA loan Approvals
MIC
Mortgage Insurance Certificate - issued by HUD as evidence of mortgage insurance
MIP
Mortgage Insurance Premium - annual premium charged by FHA for insuring loan; collected monthly from borrower, with mortage
payment
MSA
Metropolitan Statistical Area
OCC
Office of the Comptroller of Currency - Regualtor of Banks in addition to FDIC and FRB
PITI
Principle, Interest, Taxes and Insurance - monthly mortgage payment
P & L
Profit and Loss Statement
PLC
Personal Line of Credit
PMI
Private Mortgage Insurance - insures conventional loans, as FHA does for government loans; private industry
PUD
Planned Unit Development
RAM
Reverse Annuity Mortgage. mortgage investment; Lender makes monthly payments to borrower
REM
Rapid Equity Mortgage, mortgage instrument; Bi-weekly payments pay off loan in 16 years
with considerable interest savings
RESPA
Real Estate Settlement Procedures Act, the reason for Good Faith Estimate of Closing Costs,
HUD-I Settlement Statement, and transfer of Servicing Disclosure
RTC
Resolution Trust Corporation
TIL
Truth-in-Lending disclosure
URLA
Uniform in Residential Loan Application
UFMIP
Up Front Mortgage Insurance Premium, fee charged by FHA at time of loan closing for
insuring loan, paid by borrower
URAR
Uniform Residential Appraisal Report, conventional appraisal report form
VA
Department of Veteran Affiairs, Guarantees loans for veterans
VOD
Verification of Deposit
VOE
Verification of Employment
VOM
Verification of Mortgage
VOR
Verification of Rent
Questions - Please call (574)
320-2281
