Mortgage Terminology

DTI: Debt to income

·         Underwriters turn to this ratio to determine if a borrower can financially meet a mortgage obligation.

UETA: Uniform Electronics Transactions Act

·         One of this Act’s purposes is to help harmonize state laws with the recognition of electronic signatures on documents.

PITI: Principal and interest plus taxes and insurance

·         Lenders often will break a borrower’s monthly payment down into this equation.

ATR: Ability to repay

·         The Dodd-Frank Act mandates that lenders ensure borrowers have the ability to repay their debt.

HOEPA: Home Ownership Equity and Protection Act

·         The law helps to determine when a loan becomes considered a high-cost mortgage.

SFHA: Special Flood Hazard Area

·         Lenders must monitor flood maps to see if the property has been placed into these zones.