Mortgage & Securitization Acronyms & Terms

The following is a list of Mortgage & Securitization Acronyms & Terms that will be helpful to anyone researching Mortgage & Securitization issues.  There are only a few spaces left for Max’s Mortgage Securitization and Servicing Seminar.  So if you’re interested in attending, please check out the Seminar Page on our website.

ABS         Asset Backed Securitization or Asset-Backed Security

ACB         Adjusted Cost Base

ADOT         Assignment of Deed of Trust

ADVANCE         Charge Against the Loan by Servicer

AFN         American Foreclosure Network

AGENCY DEAL         Securitization by Fannie, Freddie or Ginnie

AIL         Annual Information Form

Allonge         Endorsement Permanently attached to a Note

ALTA         American Land Title Association

ANSI         American National Standards Institute

AOM         Assignment of Mortgage

API         Annual Percentage Interest

APPLICATION         Applying Funds to Principal, Interest, etc.

APR         Annual Percentage Rate

APR         Attorney Performance Rating

ARM         Adjustable Rate Mortgage

BCL         Bank Credit Letter

BFP         Bona fide Purchaser

BPO         Broker’s Price Opinion

BUCKETS         Terms for Accounts (BPO Bucket, Suspense

Bucket, etc)

BWR         Borrower

CBWR         Co-Borrower

CDO         Collateral Debt Obligation

CDO Squared         CDOs Resecuritized

CDO Cubed         CDO Squared Rescuritized

CLTV         Combined-Loan-to-Value

CMBS         Commercial Mortgage Backed Securitization

CMO         Collateralized Mortgage Obligation

CODI         Cost of Deposits Index

COFI         Cost of Funds Index

COLLECTION LOG         Manual Notes by Servicer Techs, etc.

COSI         Cost of Savings Index

Communique         LPS Desktop Email

CPI         Consumer Price Index

CPS         Community Property State

CRV         Certificate of Reasonable Value

CUSTODIAN         Repository of Original Mortgage Documents

DEFAULT SERVICER         Servicer After Mortgage in Default

DFT         Direct Funds Transfer

DOT         Deed of Trust – Security Instrument

DSO         Domestic Support Obligation

DTI         Debt to Income Ratio

DU         Desktop Underwriter

EDGAR         Search Engine of the SEC

ECOA         Equal Credit Opportunity Act

EFT         Electronic Funds Transfer

Endorsement         Article 3 Negotiation of Note

Fannie Mae         Federal National Mortgage Association (FNMA)

FASB         Financial Accounting Standards Board

FCRA         Fair Credit Reporting Act

FDCPA         Fair Debt Collections Practices Act

FHA         Federal Housing Administration

FHFA         Federal Housing Finance Agency

FHFB         Federal Housing Finance Board

FHLB         Federal Home Loan Bank

FHLBB         Federal Home Loan Bank Board

FHLMC         Federal Home Loan Mortgage Corporation

(Freddie Mac)

Fidelity         Now LPS

Fiserv         Mortgage Servicing Platform

FmHA         Farmers Home Administration

FMV         Fair Market Value

FNIS         Fidelity National Information Systems (LPS)

FNMA         Federal National Mortgage Association (Fannie Mae)

FRB         Federal Reserve Bank

Freddie Mac         Federal Home Loan Mortgage Corporation (FHLMC)

FRM         Fixed Rate Mortgage

FTC         Federal Trade Commission

FTHB         First Time Home Buyer

GDS         Gross Debt Service Ratio

GEM         Growing Equity Mortgage

GFE         Good Faith Estimate

GSE         Government-Sponsored Enterprise

Ginnie Mae         Government National Mortgage Association (GNMA)

GNMA         Government National Mortgage Association

(Ginnie Mae)

GPM         Graduated Payment Mortgage

GPO         Guaranteed Purchase Offer

HAFA         Homeowners Assistance Foreclosure Act

HAMP         Homeowners Assistance Modification Program

HARP         Homeowners Assistance Refinance Program

HECM         Home Equity Conversion Mortgage

HELOC         Home Equity Line of Credit

HERA         Housing and Economic Recovery Act of 2008

HO         Homeowner

HUD         Housing and Urban Development

HUD1         Settlement Statement

HUP         Homeowners Unemployment Plan

IAD         Interest Adjustment Date

Index         Source for ARM Rate Adjustments

IO         Interest Only payment mortgage

IP         Investment Property

IPSO FACTO         Bankruptcy Default Clause or Condition

JTWRS         Joint Tenants with Right of Survivorship

KLT         Key Loan Transaction History (XLS

Spreadsheet by Servicer Tech)

LDP         Loan Deficiency Payment

LE         Life Estate

LIBOR         London Interbank Offered Rate

LMI         Lender’s Mortgage Insurance

LO         Loan Officer

LOCK BOX         Payment Processing Vendor

LOCK OUT         Securing a Vacated Home

LP         Loan Prospector

LPMI         Lender Paid Mortgage Insurance

LPS         Lender Processing Services

LPS Desktop         LPS Communication System

LSAMS         Mortgage Servicing Platform

LTV         Loan-to-Value Ratio

MBA         Mortgage Bankers Association

MBS         Mortgage Backed Securities

MERS         Mortgage Electronic Registration System

MERS Milestone         MERS Report on Owners Note and Servicers

MFRS         Motion for Relief from Stay

Milestones         LPS APR benchmarks

MIN         MERS Identification Number

MIP         Mortgage Insurance Premium

MOARM         Multiple Option Adjustable Rate Mortgage

Mortgage         Security Instrument

MPF         Mortgage Partnership Finance

MPP         Mortgage Purchase Program

MSP         Mortgage Servicing Platform

MTA         Monthly Treasury Average

NAMB         National Association of Mortgage Brokers

NEG AM         Negative Amortization

NewImage         Electronic Document Transfer System

NewInvoice         Electronic Billing System

NewTrak         Email Communication System

NINA         No Income No Asset (No Doc Loan)

NIV         No Income Verification

NOO         Non Owner Occupied

Note         Obligation of Borrower

NPV         Net Present Value Test under HAMP

O/O         Owner Occupied

OARM         Option Adjustable Rate Mortgage

OTS         Office of Thrift Supervision

OUTSOURCE         Retaining Third Party for Service or

Function

PENCIL HISTORY         XLS Spreadsheets Prepared by Servicer

PI         Property Inspection

PIT         Principal, Interest, Taxes

PITI         Principal, Interest, Taxes, Insurance

PMI         Private Mortgage Insurance

POARM         Payment Option Adjustable Rate Mortgage

POC         Paid Outside Closing (re: real estate closing)

POC         Proof of Claim

PPA         Peak Performance Awards

PPP         PrePayment Penalty

PR         Primary Residence

PRIVATE         Non-Agency Securitization

Prospectus         SEC Description and Risk of Investments

PSA         Pooling and Servicing Agreement

PTD         Paid to Date

PUD         Planned Unit Development

P308         MSP Screen Shots

QWR         Qualified Written Request under RESPA

RAM         Reverse Annuity Mortgage

RAST         Residential Asset Securitization Trust

RATING AGENCY         Moody’s, Fitch and Standard & Poor’s

REAF         Reaffirmation of Debt in Chapter 7

RECASTING         Date that ARM Resets from Teaser to

Base Interest Rate

REFI         Refinance

REMIC         Real Estate Mortgage Investment Conduit

Act of 1986 (Tax Law for RMBS Trusts)

REPRO         LPS network attorney request to reproject

a fixed time-line or milestone

RESET         The Date an ARM rate changes based on

a change in the Index Rate

RESL         Real Estate Securitization Law

RESPA         Real Estate Settlement Procedures Act

RideThru         Current on 7 Mortgage with no Reaff

ROBOSIGN         Document Signed by Out-Source Vendor

RMBS         Residential Mortgage Backed Securitization

SAM         Shared Appreciation Mortgage

S&D Mortgage         Scratch & Dent Mortgage (Low FICO or

Non-performing history)

SEC         Securities & Exchange Commission

SERVICER         The entity that Collects & Applies Payments

SFR         Single Family Housing

SigR         Signature to be Provided by Out-Source Vendor

SISA         State Income, Stated Asset

SIVA         State Income, Verified Asset

SRP         Service Release Premium

SUSPENSE         Holding funds in an Unapplied Account

TALF         Term Asset-Backed Securities Loan Facility

TEASER         Low Interest Rate on ARM

TBE         Tenancy by the Entirities

TIC         Tenants in Common

TIL/TILA         Truth in Lending Act

TLTV         Total-Loan-to-Value

TRUE SALE         Basis for Creating Securitized Assets

UCC         Uniform Commercial Code

UDAP         Unfair Deceptive Act & Practice Statute (NC)

USDARHS         United States Department of Agriculture/Rural Housing Services

USFN         United States Foreclosure Networks

VA         Veterans Administration

VENDOR         Third-Party Service Provider

VOD         Verification of Deposit

VOE         Verification of Employment

VOM         Verification of Mortgage

VOR         Verification of Rent

VRM         Variable Rate Mortgage

XLS         Account Spread Sheets by Servicers

YSP         Yield Spread Premium