Acronyms have become a staple in corporate America and especially within the mortgage industry.
If you know some others you don't see below, please submit them on the home page and I will post them here.
Below are 60 or more of the common ones you will need to know and become familiar with if you plan on being in this crazy but awesome and fun industry.
1. LTV ( Loan to value ) You can get this end result by dividing your new loan amount by your appraised value.
For example: Loan Amt : $185,000 and Estimated Appraised value: $255,000 ( $185,000/$255,000 ) = 72.5%
2. CLTV ( Combined Loan to Value ) This is when you have a 2nd mortgage thrown into the mix that maybe you wish to subordinate. For Example: 1st Mortgage of $185,000, 2nd mortgage of $34,000 and appraised value of $255,000.
( $185,000+34,000/$255,000 ) 85.9% CLTV or 72.5% over 85.9%
3. HCLTV ( High Combined Loan To value ) Same deal as about BUT you have a 2nd mortgage this is structured as a Equity Line of Credit ( HELOC ) and has more available credit to draw on.
For Example: New loan Amount of: $185,000, 2nd Mortgage of $34,000 BUT can borrow up to $50,000.
( $185,000+$50,000/$255,000 ) This situation you would have a 92.2% HCLTV
4. UFMIP ( Upfront Mortgage Insurance Premium ) This is only for FHA Loans. UFMIP is an amount of the money that gets added to the loan and goes to FHA @ COE for the MIP account. This amount is annualized over of the life of the loan Formula: L/A X UFMIP RATE ( today it's 1.75% and added to your base loan amount
For Example: $250,000 X 1.75% =$4,375 + Base L/A = Final Loan Amout. Answer: $254,375 ( UFMIP is refundable @ a percentage of the amount you started with. See the FHA page on trhis site about UFMIP etc.
5. MMIP ( This is only for FHA Loans. Monthly Mortgage Insurance Premium which is annualized over the first 60 months of the life of the loan ) Formula: L/A Times MMIP RATE/12
For Example: $250,000 X 1.25% =3,125/12=$260.41 per month. The MMIP changed after April 2013!
6. PMI ( Private Mortgage Insurance AKA MI ) This pertains to coventional Loans only where a lender would issue a mortgage insurance policy along with the loan. Mostly for conventional loans above 80% LTV. ( remember LTV ? )
7. LPMI ( Lender Paid Mortgage Insurance ) This is when a lender buys a lump sum mortgage insurance policy @ closing that covers the risk. Basically spreads out the PMI over the life of the loan instead of charging it on am onthly basis. This is only available for Conventional Loans. Max LTV is 95%. We used to have a 97%r.
8. DTI ( Debt to Income Ratio ) This is the difference between the gross income and the payments of the following: New Principle and Interest payment, Property Taxes, HOA dues, PMI or MIP, all minimum payments on credit report, Homeowners Insurance. ( Deferred student loans please use 2% of the balances )
For Example: $8500 gross income between the wife and husband. YOur mortgage payment is $1,277.00 But all payments equal out to $3980.00. So, $3980/$8,500= 46.8% DTI ( 46.8% is not good! ) See your AUS/DU and recaluculate your income. We mainly focus our attention on the Back end DTI. This is the exaple about. The front End DTI is when you take just the P&I payment and divide by the gross Income. This formula would be $1,277/$8,500=15% ( Or you would have a 15 over 46.8% DTI
9. AMC ( Appraisal Management Company )
10. IO ( Interest Only ) Pertains to the terms of a mortgage payment
11. VOE ( Verification Of Employment )
12. WVOE ( Written Verification of Employment )
13. VVOE ( Verbal Verification Of Employment )
14. VOM ( Verification Of Mortgage ) Payments really...
15. TIL ( Truth In Lending ) Its a federal loan disclosure that goes out in the large package
16. GFE ( Good Faith Estimate ) It's a key federal loan disclosure that goes out in the large package
17. LOE/LOX ( Letter Of Explanation )
18. CPL ( Closing Protection Letter )
19. COE ( Close Of Escrow )
20. DOT ( Deed Of Trust )
21. HUD ( settlement statement ) I know..it doesnt make sence
22. HO6 ( The Master policy for a HOA )
23. HOA ( HomeOwners Association )
24. UW ( Underwritter or UWr )
25. LO/MLO ( Loan Officer/Mortgage Loan Originator )
26. 10-4 ( I understood your message ) Had to put this in here. I grew up loving diesel trucks and CB radio talk!
27. LA ( Loan Amount )
28. T&E ( Title and Escrow )
29. PRE ( Preliminary Title Report )
30. PIW ( Property Inspection Waiver )
31. BRW ( Borrower )
32. HOI ( Homeowners Insurance )
33. DU ( Desktop Undewrite ) also called your AUS
34. AUS ( Automated Underwriting System )
35. REO ( Real Estate Owned )
36. APP ( Applicant )
37. CAPP ( Co-Applicant )
38. P&I ( Principle and Interest )
39. SSN ( Social Security Number )
40. SSI ( Social Security Income )
41. FHA ( Federal Housing Administration ) Government Entity that Insures Lenders against loss
42. VA ( Dept of Veterans Affairs ) loans specifically for Vets of the armed Forces like Army, Airforce, Navy etc
43. APR ( Annual Percentage Rate ) Its the cost of the credit over the life of the loan.
44. IRRRL Pronounced Earl ( Interest Rate Reduction Refinance Loan ) Only Pertains to VA loans. Just like a Streamline.
45. DURP ( DU Refi Plus ) Elgible Loans owned by Fannie Mae and funded and endorsed priot to May 31, 2009.
46. HARP ( Home Affordable Refinance Program ) Part of Obamas "Stimulus package" from early 2009.
47. NTB ( Net Tangible Benefit )
48. CAIVRS ( Credit Alert Interactive Voice Response System ) whats that anyways?
49. POA ( Power Of Attorney )
50. BAH/BAQ ( Basic Allowance for Housing/Quarters ) Pertains mostly to a paystub for a VA loan applicant.
51. PITI ( Principle, Interest, Taxes and Insurance)
52. ARM ( Adjustable Rate Mortgage )
53. PUD ( Planned Unit Development ) See your prelim!
54. URLA ( Uniform Residential Loan Application )
55. 1003 ( Is the Loan app for your file ) Ten O'Three
56. CO ( Remember the table of elements in 10th Grade Science class?) Carbon Monoxide...as in CO Detector. CA only!
57. CO ( Certificate of Occupancy ) Issued by the building inspector, New Construction/Purchase loans/Remodels
58. COC ( Change Of Circumstatnce ) Must complete this form when changes to the loan are made. Like locking etc
59. TD ( Trust Deed ) i.e. 1st TD, AKA Deed of Trust
60. HELOC ( Home Equity Line of Credit ) Like a giant credit card with a lien on title
61. CTC ( Clear to Close ), check the clock, your lock, payoffs, all credit docs, set alert for GAP credit, date of approval too!! Ask your processor about any expiring PTD conditions too.
62. PTF ( Prior To Funding ) pertains to waiving a PTD condition and getting the condition at a later date.
63. PTD ( Prior To Doc ) Pertains to gathering conditions before docs go out.
64. 442, 1004, 2016 ( all appraisal forms that we use and need ) Google em, feed and share!
65. UCC Uniform Commercial Code. It’s a lien on a fixture that is on the property.
If you know some others you don't see below, please submit them on the home page and I will post them here.
Below are 60 or more of the common ones you will need to know and become familiar with if you plan on being in this crazy but awesome and fun industry.
1. LTV ( Loan to value ) You can get this end result by dividing your new loan amount by your appraised value.
For example: Loan Amt : $185,000 and Estimated Appraised value: $255,000 ( $185,000/$255,000 ) = 72.5%
2. CLTV ( Combined Loan to Value ) This is when you have a 2nd mortgage thrown into the mix that maybe you wish to subordinate. For Example: 1st Mortgage of $185,000, 2nd mortgage of $34,000 and appraised value of $255,000.
( $185,000+34,000/$255,000 ) 85.9% CLTV or 72.5% over 85.9%
3. HCLTV ( High Combined Loan To value ) Same deal as about BUT you have a 2nd mortgage this is structured as a Equity Line of Credit ( HELOC ) and has more available credit to draw on.
For Example: New loan Amount of: $185,000, 2nd Mortgage of $34,000 BUT can borrow up to $50,000.
( $185,000+$50,000/$255,000 ) This situation you would have a 92.2% HCLTV
4. UFMIP ( Upfront Mortgage Insurance Premium ) This is only for FHA Loans. UFMIP is an amount of the money that gets added to the loan and goes to FHA @ COE for the MIP account. This amount is annualized over of the life of the loan Formula: L/A X UFMIP RATE ( today it's 1.75% and added to your base loan amount
For Example: $250,000 X 1.75% =$4,375 + Base L/A = Final Loan Amout. Answer: $254,375 ( UFMIP is refundable @ a percentage of the amount you started with. See the FHA page on trhis site about UFMIP etc.
5. MMIP ( This is only for FHA Loans. Monthly Mortgage Insurance Premium which is annualized over the first 60 months of the life of the loan ) Formula: L/A Times MMIP RATE/12
For Example: $250,000 X 1.25% =3,125/12=$260.41 per month. The MMIP changed after April 2013!
6. PMI ( Private Mortgage Insurance AKA MI ) This pertains to coventional Loans only where a lender would issue a mortgage insurance policy along with the loan. Mostly for conventional loans above 80% LTV. ( remember LTV ? )
7. LPMI ( Lender Paid Mortgage Insurance ) This is when a lender buys a lump sum mortgage insurance policy @ closing that covers the risk. Basically spreads out the PMI over the life of the loan instead of charging it on am onthly basis. This is only available for Conventional Loans. Max LTV is 95%. We used to have a 97%r.
8. DTI ( Debt to Income Ratio ) This is the difference between the gross income and the payments of the following: New Principle and Interest payment, Property Taxes, HOA dues, PMI or MIP, all minimum payments on credit report, Homeowners Insurance. ( Deferred student loans please use 2% of the balances )
For Example: $8500 gross income between the wife and husband. YOur mortgage payment is $1,277.00 But all payments equal out to $3980.00. So, $3980/$8,500= 46.8% DTI ( 46.8% is not good! ) See your AUS/DU and recaluculate your income. We mainly focus our attention on the Back end DTI. This is the exaple about. The front End DTI is when you take just the P&I payment and divide by the gross Income. This formula would be $1,277/$8,500=15% ( Or you would have a 15 over 46.8% DTI
9. AMC ( Appraisal Management Company )
10. IO ( Interest Only ) Pertains to the terms of a mortgage payment
11. VOE ( Verification Of Employment )
12. WVOE ( Written Verification of Employment )
13. VVOE ( Verbal Verification Of Employment )
14. VOM ( Verification Of Mortgage ) Payments really...
15. TIL ( Truth In Lending ) Its a federal loan disclosure that goes out in the large package
16. GFE ( Good Faith Estimate ) It's a key federal loan disclosure that goes out in the large package
17. LOE/LOX ( Letter Of Explanation )
18. CPL ( Closing Protection Letter )
19. COE ( Close Of Escrow )
20. DOT ( Deed Of Trust )
21. HUD ( settlement statement ) I know..it doesnt make sence
22. HO6 ( The Master policy for a HOA )
23. HOA ( HomeOwners Association )
24. UW ( Underwritter or UWr )
25. LO/MLO ( Loan Officer/Mortgage Loan Originator )
26. 10-4 ( I understood your message ) Had to put this in here. I grew up loving diesel trucks and CB radio talk!
27. LA ( Loan Amount )
28. T&E ( Title and Escrow )
29. PRE ( Preliminary Title Report )
30. PIW ( Property Inspection Waiver )
31. BRW ( Borrower )
32. HOI ( Homeowners Insurance )
33. DU ( Desktop Undewrite ) also called your AUS
34. AUS ( Automated Underwriting System )
35. REO ( Real Estate Owned )
36. APP ( Applicant )
37. CAPP ( Co-Applicant )
38. P&I ( Principle and Interest )
39. SSN ( Social Security Number )
40. SSI ( Social Security Income )
41. FHA ( Federal Housing Administration ) Government Entity that Insures Lenders against loss
42. VA ( Dept of Veterans Affairs ) loans specifically for Vets of the armed Forces like Army, Airforce, Navy etc
43. APR ( Annual Percentage Rate ) Its the cost of the credit over the life of the loan.
44. IRRRL Pronounced Earl ( Interest Rate Reduction Refinance Loan ) Only Pertains to VA loans. Just like a Streamline.
45. DURP ( DU Refi Plus ) Elgible Loans owned by Fannie Mae and funded and endorsed priot to May 31, 2009.
46. HARP ( Home Affordable Refinance Program ) Part of Obamas "Stimulus package" from early 2009.
47. NTB ( Net Tangible Benefit )
48. CAIVRS ( Credit Alert Interactive Voice Response System ) whats that anyways?
49. POA ( Power Of Attorney )
50. BAH/BAQ ( Basic Allowance for Housing/Quarters ) Pertains mostly to a paystub for a VA loan applicant.
51. PITI ( Principle, Interest, Taxes and Insurance)
52. ARM ( Adjustable Rate Mortgage )
53. PUD ( Planned Unit Development ) See your prelim!
54. URLA ( Uniform Residential Loan Application )
55. 1003 ( Is the Loan app for your file ) Ten O'Three
56. CO ( Remember the table of elements in 10th Grade Science class?) Carbon Monoxide...as in CO Detector. CA only!
57. CO ( Certificate of Occupancy ) Issued by the building inspector, New Construction/Purchase loans/Remodels
58. COC ( Change Of Circumstatnce ) Must complete this form when changes to the loan are made. Like locking etc
59. TD ( Trust Deed ) i.e. 1st TD, AKA Deed of Trust
60. HELOC ( Home Equity Line of Credit ) Like a giant credit card with a lien on title
61. CTC ( Clear to Close ), check the clock, your lock, payoffs, all credit docs, set alert for GAP credit, date of approval too!! Ask your processor about any expiring PTD conditions too.
62. PTF ( Prior To Funding ) pertains to waiving a PTD condition and getting the condition at a later date.
63. PTD ( Prior To Doc ) Pertains to gathering conditions before docs go out.
64. 442, 1004, 2016 ( all appraisal forms that we use and need ) Google em, feed and share!
65. UCC Uniform Commercial Code. It’s a lien on a fixture that is on the property.
