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Mortgage Acronyms and Terms for Streamline

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  • An organization in a subdivision, planned community or condominium that makes and enforces rules for the properties and their residents
    Homeowner's Association (HOA)
  • An agreement between two mortgagees holding mortgages on the same real estate property that agrees to the priority of each mortgage.
    Subordination
  • Typically, borrowers making a down payment of less than 20 percent of the purchase price of the home will need to pay for this type of insurance
    Mortgage Insurance
  • The Amount of money the borrower needs to bring to closing to complete the real estate purchase; however, does not refer to actual physical cash
    Cash to Close (CTC)
  • Loans kept by the lender to earn consistent interest on the loan.
    Portfolio
  • Also known as a loan officer, these individuals are knowledgeable about all the various types of loans offered and can advise borrowers on the best options for their needs
    Loan Advisor
  • The individual receiving funds on loan from a lender, obligating him/herself to terms of repayment
    Borrower (BWR)
  • Monthly payments are due the first of every month, with a 15-day grace period before fees are assessed.
    Next Payment Due (NPD)
  • Also known as the loan processor, this individual keeps the borrower informed through email, inbound and outbound calls, about the status of his/her loan application
    Customer Advocate (CA)
  • This refers to a real estate development that integrates residential and commercial buildings with open spaces in a single project.
    Planned Urban Development (PUD)
  • This a form of property insurance that covers losses and damages to an individual's house and to assets in the home
    Homeowner's Insurance (HOI)
  • The repayment of a debt with fixed payments at regular intervals that will fully pay the amount of interest due and the principle over the defined term.
    Amortization
  • The lender’s right to claim the borrower’s property in the event the borrower defaults
    Lien
  • Five page form that provides final details about the mortgage loan the borrower has selected.
    Closing Disclosure (CD)
  • This is a legal document that authorizes one person to act on behalf of another.
    Power of Attorney (POA)
  • This is the borrower’s commitment to a lender. If a borrower has applied for a loan and has received loan estimates from a few lenders, he or she must notify which lender’s loan offer will be accepted within 10 business days after basic app
    Intent to Proceed (ITP)
  • The estimated date that is provided to the borrower, but is not the same as the exact date of closing
    Anticipated Closing Date (ACD)
  • _________ is dedicated to fostering homeownership in America. We build lasting relationships – one loan at a time – by providing personalized mortgage solutions and unparalleled service
    Freedom Mortgage Corporation (FMC)
  • A second individual receiving funds on loan from a lender, obligating him/herself to terms of repayment
    Co-Borrower (CB)
  • A Federal Housing Administration document providing evidence that a mortgage has been insured and that a contract of mortgage exists between the FHA and the lender
    Mortgage Insurance Certificate
  • A mortgage that has the same (never changing) interest rate throughout the entire term of the loan.
    Fixed Rate Mortgage
  • Documents that are signed with actual pen-on-paper. After being signed, these files can still be transmitted, uploaded and viewed digitally in the borrower’s file.
    Wet Signed
  • Paying off an existing mortgage loan while simultaneously taking a new one.
    Refinance
  • Mortgage insurance for conventional loan through Freddie Mac and Fannie Mae is known as?
    Private Mortgage Insurance (PMI)
  • The government agency that issues and insures mortgage by the VA.
    Veterans Affairs (VA)
  • This notification is sent to the borrower when they have not responded to requests for information. The notification can be initiated after several unsuccessful attempts at borrower contact
    Notice of Incomplete Application (NOIA)
  • Loans that have become Freedom’s as a result of a corporate level purchase.
    Acquisition
  • Funds held by the lender to pay the borrower’s real estate taxes and homeowners insurance premium until the funds are required.
    Escrow
  • In spousal or community property states, a borrower’s spouse must sign closing documents even if that spouse is not named on the loan
    Non-Borrowing Spouse (NBS)
  • These are the four components of the monthly housing expense.
    Principal, Interest, Taxes, Insurance (PITI)
  • Forms that must be sent to the borrower to inform them of costs or procedures associated with their loan.
    Disclosures
  • This is documentation of the borrower's mortgage payment history.
    Verification of Mortgage (VOM)
  • An up-to-date report on the total of funds needed to satisfy the debt of an existing mortgage.
    Payoff
  • Because you must establish that the individual applying for the loan is the same person named on the original loan, the borrower’s identity needs to be confirmed. Must also verify this before discussing any loan information with a borrower.
    Social Security Number Verification
  • A software system used by Freedom to store and index loan related documents for current and past loan applications.
    Electronic Document Management System (EDMS)
  • Freedom’s centralized computer software program where all loan information is housed, accessed by Operations personnel and updated as required by role
    Lakewood (LW)
  • This designation is given to a property that is not the borrower’s primary residence
    Non-Owner Occupied (NOO)
  • The process of examining all the data about a borrower's property and repayment ability to determine whether the mortgage applied for by the borrower should be issued.
    Underwriting (UW)
  • The Federal agency responsible for national policy and programs that address America's housing needs, that improve and develop the Nation's communities, and enforce fair housing laws.
    Housing Urban Development (HUD)
  • Makes it unlawful for any creditor to discriminate against any applicant, on any kind of credit transaction based on race, color, religion, nationality, sex, marital status or age
    Equal Credit Opportunity Act (ECOA)
  • Provides a more complete picture by taking the interest rate as a starting point and accounting for lender fees and other charges required to finance the mortgage loan
    Annual Percentage Rate (APR)
  • This is the most common type of home listed.
    Single Family Home (SFH)
  • The government agency that issues and insures mortgage by the FHA.
    Federal Housing Administration (FHA)
  • Borrowers are required to submit certain information and/or documentation to get a loan approved; however, if they fail to respond to attempts to collect these items the loan file can be closed
    File Closing for Incompleteness (FCI)
  • An order awarded by a court to pay money owed to a creditor.
    Judgement
  • Since some loan programs are only designed to finance a borrower’s principle residence, the borrower must submit proof that the address being mortgaged is where he or she actually lives.
    Proof of Occupancy (POO)
  • Loans that are guaranteed by the government.
    Government Loan