Quantcast

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.

HOEPA HOEPA

Clue: This law sets the thresholds for determining when a loan becomes a high-cost mortgage.

HOEPA HOEPA

Home Ownership Equity and Protection Act

SFHA SFHA

Clue: Servicers are required to keep tabs on flood maps to see if they changed and a property had been placed into this zone.

SFHA SFHA

Special Flood Hazard Area

RHS RHS

Clue: This government program provides mortgage loans for many other purposes besides farm land.

RHS RHS

Rural Housing Service

DTI DTI

Clue: Underwriters use this ratio to determine if the borrower has the financial capacity to manage their obligations.

DTI DTI

Debt To Income

UETA UETA

Clue: One of its purposes is to harmonize state laws regarding the recognition of electronic signatures on documents.

UETA UETA

Uniform Electronic Transactions Act

PITI PITI

Clue: The borrower's monthly payment is broken down into these components.

PITI PITI

Principal and Interest plus Taxes and Insurance

ATR ATR

Clue: The Dodd-Frank Act requires lenders to make sure the borrower has this capability.

ATR ATR

Ability To Repay

NINA NINA

Clue: It's not a woman's name but a type of loan that was a cause of the mortgage meltdown, some people state.

NINA NINA

No Income No Asset verification

LLPA LLPA

Clue: This is a risk-based fee assessed to conforming borrowers that varies based loan traits.

LLPA LLPA

Loan-Level Pricing Adjustments

UCDP UCDP

Clue: Appraisal reports for conforming mortgages must be submitted through this electronic gateway.

UCDP UCDP

Uniform Collateral Data Portal