10 servicing abbreviations every mortgage pro must know
Published June 30, 2017 5:14 PM
|
Updated June 30, 2017 5:14 PM
1 Min Read
Mortgage insiders love dropping jargon whenever possible. Test your knowledge of these key abbreviations from the servicing sector of the mortgage industry.
Take a look at the category and clue when making your guess before flipping to the next slide to see the answer.
Check out thefirst edition and part two our mortgage abbreviation slideshows here.
Take a look at the category and clue when making your guess before flipping to the next slide to see the answer.
Check out the
REO
Not the name of a long-defunct truck manufacturer, but what a bank has on its books after it buys a property out of foreclosure.
REO
Real Estate Owned
ADS
The system used to process principal and interest payments for loans in Fannie Mae mortgage-backed securities pools.
ADS
Automated Drafting System
WAC
Servicing rights buyers look at this measure to help gauge the likelihood of the underlying loans refinancing.
WAC
Weighted Average Coupon
UPB
The amount the borrower owes on the loan, minus the interest, taxes and insurance payments.
UPB
Unpaid Principal Balance
FDCPA
This law lists abusive and deceptive actions that are prohibited when trying to collect a debt.
FDCPA
Fair Debt Collections Practices Act
QRPC
The standard servicers are to use when communicating with a borrower about resolving a delinquent loan.
QRPC
Quality Right Party Contact
MTMLTV
This rather long acronym is a calculation dividing the gross UPB (including any forbearance from a previous modification) by the current property value.
MTMLTV
Mark-to-Market Loan-to-Value
CPR
This measure is used by servicers and securitizers to estimate how many loans in their portfolio will pay off in any given time period.
CPR
Conditional Prepayment Rate
BPO
After a property goes into default, the servicer needs to report to the investor how much it is worth by using this valuation product.
BPO
Broker Price Opinion
IDI
A tool created by Freddie Mac that lets servicers determine if the borrower about to stop making payments on their loan so they can be offered a modification.
IDI
Imminent Default Indicator
