Asset Backed Securitization or Asset-Backed Security - also known as ABS, these are the aggregated loans that are then sold through securities exchanges. A single home loan is packaged with many others and sold in a group to hedge funds, pension funds and retirement plans, as well as other investors. One loan could, in theory and practice, be owned by hundreds of shareholders.

ACB - Adjusted Cost Basis - Capital improvements less any depreciation which the IRS attributes to the owner at the time of sale for the purpose of determining any taxable gain or loss

Assignment of Deed of Trust - also known as ADOT, transfers the administration and ownership of the loan.

ADVANCE - Charge Against the Loan by Servicer

AFN - American Foreclosure Network

AGENCY DEAL - Securitization by Fannie Mae, Freddie or Ginnie Mac.

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 - the true percentage rate of your loan, when costs of the loan are factored in. Often miscalculated in loans.

APR - Attorney Performance Rating

ARM - Adjustable Rate Mortgage

Audit - Extremely thorough examination with well organized, written report detailing findings.

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

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

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

Deficiency Judgment - The amount left over after a foreclosure sale.  The difference between the amount the house sold for and the amount of the loan, which is still owed by the borrower after foreclosure.  Such debt can still be pursued by the lender even after foreclosure.

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

FNMA - Fannie Mae Federal National Mortgage Association

FASB - Financial Accounting Standards Board, the board that sets standards in which the SEC codifies into law.

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)

FmHA - Farmers Home Administration

FMV - Fair Market Value

FNIS - Fidelity National Information Systems (LPS)

FNMA - Federal National Mortgage Association (Fannie Mae)

Forensic - Belonging to, used in, or suitable for a court of law, or for public discussion and debate.

Forensic Loan Audit - A forensic loan audit performed by LoanAuditsPro.com is a very thorough examination and analysis of a borrower's real estate loan documents that discloses violations of Truth in Lending Laws, in addition to UCC, SEC and other federal and state statutes.

FRB - Federal Reserve Bank

FRM - Fixed Rate Mortgage, a mortgage rate or percentage that does not change throughout the life of the loan.

FTC - Federal Trade Commission, entity that oversees Truth in Lending Laws.

FTHB - First Time Home Buyer

GDS - Gross Debt Service Ratio

GEM - Growing Equity Mortgage

GFE - Good Faith Estimate, a document that must be given to the loan applicant no later than 3 days after submission of the loan application.

GSE - Government-Sponsored Enterprise

GNMA - Government National Mortgage Association (Ginnie Mae)

GPM - Graduated Payment Mortgage

GPO - Guaranteed Purchase Offer

HAFA - Homeowners Assistance Foreclosure Act

HAMP - Home Affordable 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

IO - Interest Only payment mortgage

Index - Wall Street Journal, the Treasury Rate and the LIBOR are all indexes that, coupled with a margin, make the percentage rate that is paid on adjustable rate mortgages.

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, a popular index used in sub-prime and negative amortization loans.

LMI - Lender’s Mortgage Insurance

LO - Loan Officer

LOCK BOX - Payment Processing Vendor

LOCK OUT - Securing a vacated home through eviction or other means.

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 - A registration system owned and created by major banks and lenders that is often named on Deeds of Trust as a beneficiary and nominee. MERS cannot be a beneficiary, as has been established in many court cases.

MFRS - Motion for Relief from Stay, often used in bankruptcy where lenders will seek seek 'relief' or release from the 'stay' (a legal process that keeps anyone from collecting debts from you) that borrowers have in the bankruptcy court. Is often done in Chapter 7 bankruptcies.

MIN MERS - Identification Number that MERS has on each loan.

MIP - Mortgage Insurance Premium, an insurance that is paid when less than 20% is put down on a mortgage.

MOARM - Multiple Option Adjustable Rate Mortgage

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, a type of loan that what is paid is less than the payment of principal and interest and even less than payment of interest only, resulting in a higher principal balance at the reset date.

NINA - No Income No Asset (No Doc Loan)

NIV - No Income Verification

NOO - Non Owner Occupied

Note - a debt owed; a promise to pay.

NPV - Net Present Value Test under HAMP

O/O - Owner Occupied

OARM - Option Adjustable Rate Mortgage, a mortgage in which a range of payments are given to the borrower to choose from, often including a negative amortization option, an interest only, and a full principal and interest payment.

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

PPP - Pre-Payment Penalty

PR - Primary Residence - an owner occupied property - there can only be one primary residence.

PRIVATE - Non-Agency Securitization Prospectus SEC Description and Risk of Investments

PSA - Pooling and Servicing Agreement - a 600 to 800 page document that lists all of the parameters of your securitized loan, including what can be modified.

PTD - Paid to Date

PUD - Planned Unit Development

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 principal and interest payments, also known as a reset date.

Recast Date - The date where full principal and interest payments are due, instead of just interest or partial interest. Also known as the reset date.

Recoupment - To get money back from something lost. Used in Truth in Lending laws.

REFI - Refinance

REMIC - Real Estate Mortgage Investment Conduit Act of 1986 (Tax law for RMBS trusts)

Rescission - To return something back to its previous state before the rescinded action took place. Legally makes rescinded action non-existent in the eyes of the law. Rescission of a loan brings it back to the place it was before signing.

RESET - The Date an ARM rate changes based on a change in the Index Rate; the date where full principal and interest payments are due, instead of just interest or partial interest.

RESL - Real Estate Securitization Law

RESPA - Real Estate Settlement Procedures Act

ROBOSIGN - Document Signed by an Outsourced Vendor; repetitive signing without full review.

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

Set-off - The process by which money owed is discounted by money paid in.

SFR - Single Family Housing

SigR - Signature to be Provided by Out-Source Vendor

SISA - Stated Income, Stated Asset

SIVA - State Income, Verified Asset

SRP - Service Release Premium

Strategic Default - A planned default or walking away from any loan obligations.  Often holds tax penalties and possible deficiency judgment problems.

SUSPENSE - Holding funds in an Unapplied Account

TALF - Term Asset-Backed Securities Loan Facility

TEASER - Low Initial Interest Rate on ARM

TBE - Tenancy by the Entirety

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 - the uniform laws that affect all commerce in the United States.

UDAP - Unfair Deceptive Act & Practice Statute (NC)

Upside Down - Also known as Underwater - A term meaning the amount owed on the loan is more than the value of the house or collateral.

Upside Down Refinance - Also known as a "Short Refi" or a "Short Refinance" - A loan that can cover the amount of the previous loan even though the underlying collateral (house) is not at the amount of the loan; or as in a short sale or refinance, a new loan that forgives part of the principal and revises the loan to the current value of the underlying collateral or property.

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, a 'bonus' paid by the lender to the broker, usually for securing a higher interest rate for the lender.  Has been made illegal by Congress.