ACH = Automatic Clearing House (the primary system used for electronic funds transfer)
AGI = Adjusted Gross Income
AL = Approval Letter (A letter that is issued after a lender has fully underwritten the loan. The letter will list out the terms and conditions that the borrower must fulfill prior to the lender funding the loan)
AMC = Appraisal Management Company (intermediary between lender and appraiser, oversees the appraisal process)
AMI = Area Median Income (household income of the median household in a given area)
ARM = Adjustable Rate Mortgage (a home loan with a periodically changing interest rate)
AUS = Automated Underwriting System (system that evaluates loan applications to assess eligibility for loans)
AVM = Automated Valuation Model (technology used to estimate property value)
AWC = Approved with Conditions (A status of the loan. The loan is fully underwritten and is now approved with conditions)
BA = Borrower Authorization (formal written consent given by borrower that allows third parties to receive the borrower’s financial information)
BCO = Buyer’s Counter Offer (a new proposal made in response to an initial offer to negotiate prices and terms)
BH = Broker Hold (lenders agree to fund but withhold commission until conditions are met)
BPMI = Borrower Paid Mortgage Insurance (borrowers make an additional payment on top of monthly mortgage payment, offers protection to lender)
BPO = Broker’s Price Opinion (a broker or real estate professional’s estimate of a property’s value)
BPS = Basis Points (A basis point is a unit of measure used in finance to express percentage changes, particularly for interest rates and bond yields. One basis point is equal to 0.01% (one hundredth of one percent). For example, a change of 50 basis points is equivalent to a 0.50% change)
BSS = Buyer’s/Borrower’s Settlement Statement (an escrow document summarizing all the fees that the buyer/borrower has incurred during the real estate transaction)
CCA = Credit Card Authorization
CD = Closing Disclosures (five-page statement including details and terms of the mortgage loan)
CES = Closed End Second (a second-lien mortgage with a lump sum and fixed interest rate)
CLTV = Combined Loan to Value (ratio of combined liens to value of the property)
CMA = Comparative Market Analysis (an estimate of a property’s value based on recent sales of similar properties in the area)
COE = Close of Escrow (all conditions are met, transfer of property ownership from seller to buyer, finalized transaction, date of closing)
CPL = Closing Protection Letter (Title Document) (a title document that protects lender from losses in case of mishandling or mistakes made by title company or agents)
CPM = Condo Project Manager (Fannie Mae’s Condo Project Manager™ (CPM™) is a free, web-based tool that enables lenders to quickly and easily certify a condominium project (or a legal phase of a project)
CR = Credit Report (documentation of credit history)
CR Supp = Credit Report Supplement (additional information after credit report has been pulled)
CTC = Clear to Close (A status of the loan. All conditions have been cleared and the lender is ready to close on the loan, similar to Clear to Docs)
CTD = Clear to Docs (A status of the loan. All conditions have been cleared and lender is ready to release final loan documents)
DSCR = Debt Service Coverage Ratio (a measurement of the property ability to cover its debt obligation vs its current earnings. In short, it is property cash flow rental income divide by the property’s principal + interest + insurance + property tax + association)
DTI = Debt to Income (the percentage of debt divide by the income)
DU = Desktop Underwriter (Fannie Mae AUS) (Fannie Mae’s automated underwriting system (AUS) that helps lenders assess the credit risk of mortgage loan applications and determine if they meet Fannie Mae’s eligibility requirements)
E&O = Title Error & Omission (insurance to protect title agents from lawsuits resulting from errors and omissions)
EDR = Employment Data Report (TheWorkNumber)
EI = Escrow Instructions (written guidelines outlining how an escrow agent should handle documents, assets, and money held in escrow)
EMD = Earnest Money Deposit (an upfront payment made to a seller to show a buyer’s intent to purchase a property)
EOI = Evidence of Insurance (proof of valid insurance policy)
FC = Funding Conditions (conditions set by lender preventing the transaction from occurring until it is ensured that the borrower can repay the mortgage)
FCD = Final Closing Disclosures (updated closing disclosure)
FHA = Federal Housing Administration (government agency that primarily provides insurance for mortgages)
FPD = First Payment Date
FPL = First Payment Letter
FSS = Final Settlement Statement (final closing statement)
FTC = Fund to Close (the total amount of money a buyer is required to pay on closing day to finalize the transaction)
FTHB = First Time Home Buyer (a buyer that has not owned a home in the past three years)
HELOAN = Second Loan (second loan that allows homeowners to borrow money by using their home as collateral with a lump sum and fixed payments)
HELOC = Home Equity Line of Credit (second loan that allows homeowners to borrow money by using their home as collateral with revolving credit and flexible withdrawal options)
HO3 = Home Owners Single Unit Policy (insurance covering home and structures under
“open perils” and belongings under “named perils”)
HO6 = Home Owners Condo Policy (insurance for condo owners used in conjunction with the HOA master policy)
HOI = Homeowner’s Insurance (protects property in case of damage or loss)
ICD = Initial Closing Disclosures (preliminary closing disclosure)
ID = Initial Disclosures (preliminary documents needed to be signed before proceeding with a loan application)
IO = Interest Only (a type of loan where the borrower only pays interest on a loan during a certain period)
IPC = Interested Party Contribution
IRRRL = Interest Rate Reduction Refinance Loan (allows homeowners to refinance at a lower interest rate)
JT = Joint Tenants (two or more people equally own and hold rights to a property)
LE = Loan Estimate (a three page document including important information the features of a loan)
LLE = Locked Loan Estimate (an unchanging interest rate in between the time of offer and closing)
LLPA = Loan Level Pricing Adjustments (additional fees affecting the cost of a mortgage based on risk)
LOE / LOX = Letter of Explanation (a document buyers use to answer a lender’s question about the buyer’s financial information)
LP = Loan Prospector (Freddie Mac AUS) (automated underwriting system)
LPMI = Lender Paid Mortgage Insurance (lender pays for the mortgage in exchange for a higher interest rate)
LSF = Loan Submission Form (document with a complete loan package and loan file submitted to a lender from a broker)
LTV = Loan to Value (the ratio of a loan amount to the property’s appraised value)
MI = Mortgage Insurance (insurance to protect lender when borrowers are unable to satisfy the mortgage’s contractual requirements)
MM = Mortgage Mac (lender)
MS = Mortgage Statement (provides info about home loan)
MSS = Master Settlement Statement (closing statement)
NOO = Non Owner Occupied (a loan where the borrower does not intend to reside in the property)
OD = One Drive (a Microsoft file-hosting service)
OO = Owner Occupied (a loan where the borrower intends to reside in the property as their primary residence)
P&I = Principal & Interest (the amount borrowed and the cost of borrowing)
PA = Pre-Approval (a preliminary evaluation of how likely it is for a borrower to be approved for a loan)
PFC = Post Funding Checklist (a list of items that a lender must review after closing)
PIL = Proposed Insured Loan Amount (title insurance for the loan amount)
PITIA = Principal Interest Tax Insurance Association (used to calculate total monthly housing cost)
PIW = Property Inspection Waiver (Appraisal Waiver) (allows buyers to have their mortgage approved without an appraisal on the property)
PMI = Private Mortgage Insurance (insurance that protects lenders if borrowers default on payments and their down payment is less than 20% of the property’s purchase price)
POC = Paid Outside of Closing (all fees that borrower might have paid on their own outside of the closing process)
POF = Proof of Funds (documents that prove an individual’s financial ability to complete a transaction)
PPP = Pre-Payment Penalty (a fee charged by lenders if borrowers pay off their mortgages early to compensate for lost interest)
Prelim = Preliminary Title Report = Title Commitment (a document that guarantees title insurance by a title company)
Prelim CD = Estimate Fees from Title/Escrow (initial closing disclosure with details of the financing)
PSA = Purchase Sales Contract (a contract with an agreement between the buyer and seller about the price, terms, and conditions of a real estate transaction)
PTA = Prior to Approval (before approval)
PTD = Prior to Docs (conditions that must be addressed before delivery of loan documents)
PTF = Prior to Fund (conditions that must be addressed before the loan is funded)
PUD = Planned Unit Development (a community with single family homes with shared amenities and services)
QC = Quality Control (a process where lenders and brokers double-check their work)
RCE = Reconstruction Cost Estimator (tool used to calculate home replacement costs)
REO = Real Estate Owned (a lender-owned property after foreclosure)
RPA = Residential Purchase Agreement (a home sale contract)
SCO = Seller’s Counter Offer (a seller’s response to a buyer’s offer)
SH = Second Home (a second property)
SMCO = Seller’s Multiple Counter Offer (a seller counters multiple buyers’ offers)
SSN = Social Security Number (a nine digit number used to track income and benefits)
SSR = Submission Summary Report (a summary of appraisal submission details and status of the submission uploaded to UCDP)
SSS = Seller’s Settlement Statement (summary of finances and seller’s profit at closing)
TI = Tax and Insurance (accounted for in monthly payments)
TIC = Tenants In Common (two or more parties with ownership rights with different or equal shares without survivorship rights)
TRID = TILA-RESPA Integrated Disclosures
UCDP = Uniform Collateral Data Portal (portal used for submitting appraisal reports)
UWM = United Wholesale Mortgage (mortgage lender)
VA = Veterans Affairs (a loan option for veterans and military members)
VOD = Verification of Deposit (document verifying deposits)
VOE = Verification of Employment (process of confirming employment and income)
VOM = Verification of Mortgage (document confirming a borrower’s previous loan and payment history)
VOR = Verification of Rent (process of confirming rental history)
VVOE = Verbal Verification of Employment (process in which lenders confirm employment with employers verbally)
WI = Wire Instructions (Title Document) (instructions for transferring money)
WVOE = Written Verification of Employment (document verifying income and employment)
YSP = Yield Spread Premium (a compensation fee paid to a broker from a lender for a higher interest rate)
401k PS = Plans Summary (a document outlining details of a 401k plan)
401k TOW = Terms of Withdrawal (rules or penalties relating to withdrawing 401k funds)
