Ever look at initials having to do with real estate and not know what those initials and letters mean?
Here’s a list of real estate related acronyms and what they mean. Thanks to House Canary. https://resources.housecanary.com/alphabet-soup-real-estate-acronyms-decoded
AMC – Appraisal Management Company – contracts with appraisers on behalf of lenders
ARC – Accelerated Remittance Cycle – speeds up loan payment cycle
APR – Annual Percentage Rate – annual interest rate that borrowers pay on loans
ARM – Adjustable Rate Mortgage – interest rates that fluctuate to reflect credit market activity
AVM – Automated Valuation Model – property valuation done by data, AI & algorithms
BPO – Broker Price Opinion – broker opinion on home sales value often used in foreclosures, short sales, etc., not full appraisal
CC&R – Covenants, Conditions & Restrictions – HOA rules; must be signed by buyers
CDO – Collateralized Debt Obligation – asset (mortgage/loan) that services collateral for debt on pooled assets
CFPB – Consumer Financial Protection Bureau – regulations for financial institutions, lenders, etc.; established in 2011
CMA – Comparable Market Analysis – often called comps when comparing/ determining market value
CRT – Credit Risk Transfer – used when credit losses exceed predetermined threshold of debt
CSP – Commerce Securitization Platform – supports Freddie Mac and Fannie Mae in backend operations to create mortgage backed securities
DTI – Debt-to-Income – assesses debt-to-income to assess borrower’s ability to pay
FDIC – Federal Deposit Insurance Corp. – supervises financial industry
FEMA – Federal Emergency Management Agency – federal responses to natural disasters/emergencies; manages National Flood Insurance Program
FHA – Federal Housing Administration – mortgage loan underwriting & home construction standards for higher risk borrowers; 3.5% down payment and more affordable interest rates on loans
FHFA – Federal Housing Finance Agency – oversees Federal Home Loan Bank System and GSEs (government sponsored enterprises such as Fannie Mae and Freddie Mac
FIRREA – Federal Institutions Reform, Recovery & Enforcement Act – oversees and regulates banks & savings institution as result of Savings & Loan Crisis
FRM – Fixed Rate Mortgage – constant (1st & last day) mortgage rate
FSBO – For Sale By Owner
GLA – Gross Leasable Area – amount of square footage available for rent
GSE – Government Sponsored Enterprise – Fannie Mae & Freddie Mac
HELOC – Home Equity Line of Credit – loans based upon amount of equity in home; term of loan 5-10 years; full repayment required
HOA – Home Owners’ Association – dictates standards of residential community
HPI – Home Price Index – price changes over time in specific geographic areas
HUD – US Department of Housing and Urban Development – establishes policies/programs and enforces fair housing laws & improvement initiatives
HVCC – Home Valuation Code of Conduct – appraisers must be fully licensed & lenders can’t influence appraisers
IAG – Intra-agency Appraisal & Evaluation Guidelines – how appraisers operate
LLPA – Loan Level Price Adjustment – leveraged when loan-to-value rate changes if/when loan becomes riskier
LTV – Loan To Value – value of asset against amount of loan – if more than 80%; borrower needs to pay mortgage insurance on loan
MBS – Mortgage Backed Security – 1 type of asset backed security or home mortgage that packaged & then sold
MERS – Mortgage Electronic Registration System – mortgage regulation system
MISMO – Mortgage Industry Standards Maintenance Organization – subsidiary of Mortgage Bankers Association – develops tech standards to reduce costs & increase transparency
MLS – Multiple Listing Services – local repositories of real estate listings & data – some +800 around country
MSA – Metropolitan Statistical Area – groups of cities within geographic boundaries
NCUA – National Credit Union Association – regulates credit unions
NFIP – National Flood Insurance Program – most in TX & FL
NOO – Non-Owner Occupied – rented property
NPL – Non Performing Loans – nonpayment of loans; usually 90 days of missed payments
PMIER – Private Mortgage Insurer Eligibility Requirements – requirements to obtain, maintain and get approval for loans @ Freddie Mac & Fannie Mae
PSA – Pooling and Service Agreement – scope of responsibilities for pools of mortgage loans to be managed
REO – Real Estate Owned – property owned by bank
REMIC – Real Estate Mortgage Investment Conduit – entity that holds mortgages in trust for investors
RESO – Real Estate Standards Organization – now independent of National Association of REALTORS since 2011 – develops, adopts and implements standards for all real estate transactions
RESA – Real Estate Settlement Procedures Act – monitors to ensure no kickbacks between providers & mandates disclosure from lenders
RETS – Real Estate Transaction Standards – standards for all real estate transactions in US & Canada
ROI – Return On Investment – subtract cost from gain and divide result by cost
RTO – Rent To Own – like rental agreement but with option for renter to purchase property – potential buyer must pay option money, maintain home, etc. before eligible to buy
SFR – Single Family Rental
TILA – Truth in Lending Act – lender must disclose all credit terms and costs to consumers
TRID – TILA-RESPA – Integrated Disclosure Rule – aka “Know Before You Buy” in easy-to-read language – info like how much interest over lifetime of loan – must be given at least 3 days before loan goes into effect
UAD – Uniform Appraisal Dataset – standardizes required fields for appraisal forms – developed by Fannie Mae & Freddie Mac
USPAP – Uniform Standards of Professional Appraisal Practice – standards for appraisal quality control – updated every 2 years
Please let us know if there are any real estate initials we missed here.
