10 Mortgage Abbreviations Everyone in the Industry Should Know
The mortgage industry is filled with jargon and abbreviations that can confuse even the most experienced professional. There are 91 different acronyms and abbreviations listed in the Fannie Mae Sellers Guide, and it is not a comprehensive list. Here is a little quiz to test your knowledge of what some of these abbreviations mean. Consider the category and the clue to hazard a guess before flipping to the answer on the next slide.
Clue: This law sets the thresholds for determining when a loan becomes a high-cost mortgage.
Home Ownership Equity and Protection Act
Clue: Servicers are required to keep tabs on flood maps to see if they changed and a property had been placed into this zone.
Special Flood Hazard Area
Clue: This government program provides mortgage loans for many other purposes besides farm land.
Rural Housing Service
Clue: Underwriters use this ratio to determine if the borrower has the financial capacity to manage their obligations.
Debt To Income
Clue: One of its purposes is to harmonize state laws regarding the recognition of electronic signatures on documents.
Uniform Electronic Transactions Act
Clue: The borrower's monthly payment is broken down into these components.
Principal and Interest plus Taxes and Insurance
Clue: The Dodd-Frank Act requires lenders to make sure the borrower has this capability.
Ability To Repay
Clue: It's not a woman's name but a type of loan that was a cause of the mortgage meltdown, some people state.
No Income No Asset verification
Clue: This is a risk-based fee assessed to conforming borrowers that varies based loan traits.
Loan-Level Pricing Adjustments
Clue: Appraisal reports for conforming mortgages must be submitted through this electronic gateway.
Uniform Collateral Data Portal