10 purchase market abbreviations every mortgage pro must know
September 1, 2017 3:56 PM
ymgerman - stock.adobe.com
The mortgage market shift to purchase lending has arrived. Test your knowledge of these key real estate industry terms.
Take a look at the category and clue when making your guess before flipping to the next slide to see the answer.
Take a look at the category and clue when making your guess before flipping to the next slide to see the answer.
CMA
The real estate agent performs this type of study using a recent home sale to establish a listing price for a seller or the amount a buyer should offer.
CMA
Comparative Market Analysis
FSBO
In these transactions, there isn't a seller's real estate agent for the buyer or the mortgage originator to communicate with.
FSBO
For Sale by Owner
BTSA
This is a payment made to a real estate agent that brings a buyer to a transaction that closes. It is technically offered by the agent that listed the property.
BTSA
Bonus to Selling Agent
COE
This is the last step in the home sales process, when the deed transfer is recorded with the local government, the seller gets his or her money and the buyer takes possession.
COE
Close of Escrow
HOA
This entity makes and enforces rules for the properties in its boundaries and collects dues. Lenders need to monitor if a property is in one of these because some states have a superlien for arrears that goes in front of the mortgage.
HOA
Home Owners Association
MLS
This marketing database, set up by a group of cooperating brokers, provides property information to the buyer's agent. Certain public property information is available to consumers.
MLS
Multiple Listing Service
FMV
This is the price a property would change hands between a willing buyer and a willing seller, free of any compulsion and both having reasonable knowledge of any relevant facts.
FMV
Fair Market Value
TIC
A form of property ownership where each person has a separate and undivided interest in the home, but one party may hold a larger equity stake than the other or others. Mortgage originators could use the different equity stakes to adjust how much they are willing to lend.
TIC
Tenants in Common
EMD
This is payment a buyer includes with an accepted offer that will be applied to the down payment and closing costs if the sale closes.
EMD
Earnest Money Deposit
PID
This is a defined geographical area established with the consent of a municipality to provide specific types of improvements or maintenance financed by assessments against the property owners.
PID
Public Improvement District
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