Mortgage Acronyms

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AARMR

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American Association of residential mortgage realtors. responsible for the creation of NMLS

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AFBA

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Affiliated business arrangement. The arrangement between two different companies involved in providing services in the closing of a real estate transaction. There can be no ownership interest. Requires disclosure under RESPA

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AMC’s

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Appraisal management company. The middleman between appraisers and mortgage companies.

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AML

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Anti-money laundering, law in place to require federal institutions to prevent, detect and report money laundering activities.

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APOR

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Average prime offer. A Rate used to determine whether a loan is high cost or high priced.

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APR

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Annual percentage rate. The APR calculates the annual percentage rate you would pay on the loan once the cost of getting the loan are factored in.

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ARM

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Adjustable rate mortgage. And I just bought Mortgage is the Mortgage that Will have a fixed rate for a set period of time and then the rate is adjusted. The rate will normally be adjusted once or twice a year.

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ATR

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Ability to repay, rule that requires lenders to determine whether a borrower has ability to repay the loan and requires verification of information provided to prove their ability to repay( under QM)

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AUS

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Automated underwriting system. Example:LP and DU. Used to automatically underwrite conforming loans.

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BSA

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Bank secrecy act, requires suspicious activity reports(SARS) regarding suspicious activities.

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BSA

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Bank secrecy act, requires suspicious activity reports(SARS) regarding suspicious activities.

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CAIVRS

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Credit alert verification reporting system is a federal database of people who have delinquencies of any kind of federal debt

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CFPB

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Consumer federal protection bureau. Federal regulator that regulates the mortgage industry. (The Boss)

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CHARM

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Consumer handbook on adjustable rate mortgages. Required disclosure on ARM loans,to educate the consumer about the type of loan they are on

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CLTV

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Combined loan-to-value, calculated by dividing the amount of the 1st lien loan on the total line of the credit on a HELOC or the total amount of 2nd lien loan of the purchase price or the appraised value of the property which ever is less.