Slideshow 10 secondary market abbreviations every mortgage pro must know

Published
  • May 18 2018, 12:16pm EDT

With the Mortgage Bankers Association set to host its National Secondary Market Conference and Expo on Sunday, now's a perfect time to brush up on some key secondary mortgage market terminology.

The secondary market may not be the simplest of the mortgage industry segments, and the common use of abbreviations throughout it doesn't make things any easier.

While an abbreviation like MBS for mortgage-backed securities and PMI for private mortgage insurance might be simple enough, other shorthand terms for industry phrases may be less obvious to guess (kind of like how we don't know what's going to happen with government-sponsored enterprise reform).

So take a stab at figuring out these abbreviations and see how you measure up by taking our quiz.

Be sure to reference the category and clue for each abbreviation before flipping to the next slide to reveal the answer. Good luck!

The MBA's Secondary Conference will begin on May 20 and conclude on May 23. It will be held at the New York Marriott Marquis in Times Square.

The conference will host sessions on the secondary market concerning mortgage servicing rights, GSE reform and commercial mortgage-backed securities, among other industry hot topics. Attendees will also have opportunities for networking.

Want more? Check out these other mortgage abbreviation quizzes:

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10 mortgage abbreviations everyone in the industry should know

10 more abbreviations every mortgage pro must know

10 servicing abbreviations every mortgage pro must know

10 purchase market abbreviations every mortgage pro must know

PMIER

Guidelines from the GSEs to ensure mortgage insurers have enough money to pay claims.

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PMIER

Private Mortgage Insurer Eligibility Requirements

ARC

Freddie Mac sellers and servicers can use this alternative for sending the GSE its portion of the monthly payment.

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ARC

Accelerated Remittance Cycle

LLPA

A risk-based fee assessed to conforming borrowers which varies depending on loan traits.

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LLPA

Loan Level Price Adjustment

CDO

A type of asset-backed security that pools together and repackages cash-flow generating assets that can be sold to investors.

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CDO

Collateralized Debt Obligation

REMIC

This is used to pool mortgage loans and issue mortgage-backed securities.

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REMIC

Real Estate Mortgage Investment Conduit

PSA

A contract that outlines the rights and responsibilities of investors and servicers.

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PSA

Pooling and Servicing Agreement

MERS

A database that tracks the ownership and servicing rights of mortgage loans.

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MERS

Mortgage Electronic Registration Systems

CSP

A single mortgage-backed security issued by the GSEs to finance fixed-rate mortgage loans backed by single-family properties.

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CSP

Common Securitization Platform

CRT

Effort to reduce taxpayer exposure to Fannie Mae and Freddie Mac by increasing private capital investment.

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CRT

Credit Risk Transfer

CUSIP

A nine-digit designation used to identify the PC Pool or Giant PC Pool on the Federal Reserve Bank's book entry system.

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