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)
This is the most common type of home listed.
Single Family Home (SFH)
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)
Paying off an existing mortgage loan while simultaneously taking a new one.
Refinance
This is documentation of the borrower's mortgage payment history.
Verification of Mortgage (VOM)
Loans kept by the lender to earn consistent interest on the loan.
Portfolio
The lender’s right to claim the borrower’s property in the event the borrower defaults
Lien
A second individual receiving funds on loan from a lender, obligating him/herself to terms of repayment
Co-Borrower (CB)
This designation is given to a property that is not the borrower’s primary residence
Non-Owner Occupied (NOO)
Monthly payments are due the first of every month, with a 15-day grace period before fees are assessed.
Next Payment Due (NPD)
Funds held by the lender to pay the borrower’s real estate taxes and homeowners insurance premium until the funds are required.
Escrow
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
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
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)
A mortgage that has the same (never changing) interest rate throughout the entire term of the loan.
Fixed Rate Mortgage
Five page form that provides final details about the mortgage loan the borrower has selected.
Closing Disclosure (CD)
The government agency that issues and insures mortgage by the VA.
Veterans Affairs (VA)
This is a legal document that authorizes one person to act on behalf of another.
Power of Attorney (POA)
This combines 4 existing disclosures that are required under the TILA and RESPA for most real property-secured closed-end loans.
TILA-RESPA Integrated Disclosures (TRID)
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)
A software program that allows the processor to easily view and verify the information and documents relevant to a loan.
User Interface (UI)
An up-to-date report on the total of funds needed to satisfy the debt of an existing mortgage.
Payoff
This is the PMI for FHA Loans. What is it called?
Mortgage Insurance Premium
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)
Mortgage insurance for conventional loan through Freddie Mac and Fannie Mae is known as?
Private Mortgage Insurance (PMI)
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
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
Costs assessed to the borrower that must be paid at the time and location of scheduled closing
Paid at Closing (PAC)
Freedom’s centralized computer software program where all loan information is housed, accessed by Operations personnel and updated as required by role
Lakewood (LW)
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)
Freedom Mortgage 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)
An agreement between two mortgagees holding mortgages on the same real estate property that agrees to the priority of each mortgage.
Subordination
Forms that must be sent to the borrower to inform them of costs or procedures associated with their loan.
Disclosures
Loans that have become Freedom’s as a result of a corporate level purchase.
Acquisition
These are the four components of the monthly housing expense.
Principal, Interest, Taxes, Insurance (PITI)
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)
One of the TRID disclosures, the three-page form provides the borrower with important information, including the estimated interest rate, monthly payment, and total closing costs for the loan.
Loan Estimate (LE)
A software system used by Freedom to store and index loan related documents for current and past loan applications.
Electronic Document Management System (EDMS)
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)
An order awarded by a court to pay money owed to a creditor.
Judgement
In the refinance process, when the borrower made their last payment on their current loan could be important to determine if seasoning (how old the current loan is) requirement have been met
Last Payment Made (LPM)
The estimated date that is provided to the borrower, but is not the same as the exact date of closing
Anticipated Closing Date (ACD)
The government agency that issues and insures mortgage by the FHA.
Federal Housing Administration (FHA)
The individual receiving funds on loan from a lender, obligating him/herself to terms of repayment
Borrower (BWR)
An organization in a subdivision, planned community or condominium that makes and enforces rules for the properties and their residents
Homeowner's Association (HOA)
Another mortgage lender whose loans are refinanced by Freedom.
Round Point (RDP)
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 FHA collects mortgage insurance paid both as an upfront cost and as an annual premium. The current rate is 1.75 percent of the loan amount, and it is required to be paid at the time of closing.
Up-Front Mortgage Insurance Premium (UFMIP)
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)
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)
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
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)
Loans that are guaranteed by the government.
Government Loan
This is a loan status in Lakewood and the status in which the loan is received in Streamline processing.
Iniital Disclosure Complete (IDC)
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 refers to a real estate development that integrates residential and commercial buildings with open spaces in a single project.
Planned Urban Development (PUD)
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