Mini Terms
Mini Terms
Embedded Files
Why these terms matter
Why these terms matter
You will see these terms often in US mortgage files. You do not need to master everything at once. Start with the terms below so you can follow conversations, understand basic file notes, and complete the simulations.
What you’ll learn in this tab
What you’ll learn in this tab
Understand the 10 terms you will see most often in file notes and loan updates
Know what each term affects (payment, risk, approval, docs)
Practice using the terms in quick checks
Core terms (start with these)
Core terms (start with these)
PITI
PITI is the total monthly mortgage payment made of Principal, Interest, Taxes, and Insurance. If taxes and insurance are not included, it’s called P&I.
As a Mortgage VA, you’ll see PITI on loan estimates, payment breakdowns, and system summaries.
DTI
DTI (Debt-to-Income) compares monthly debt payments to monthly income. It can be front-end (housing only) or back-end (all debts).
As a Mortgage VA, you may verify income and debts from docs and credit report to support the file review.
LTV
LTV (Loan-to-Value) compares the loan amount to the property value (or purchase price). Higher LTV usually means higher risk and may require mortgage insurance.
As a Mortgage VA, you’ll see LTV in the Loan Estimate and AUS findings (DU/LPA).
AUS (DU/LPA)
AUS is the automated underwriting system that evaluates the loan’s initial eligibility. The two common systems are DU and LPA. They return findings like Approve/Eligible or Accept/Eligible, or Refer (and similar results), which guide what the team needs to fix or submit next.
As a Mortgage VA, you may upload the 1003, pull findings, and help track required docs listed in the report.
Escrow account
Escrow is an account where the lender holds money for property taxes and homeowners insurance. The borrower pays into it monthly, then the lender pays bills when due.
As a Mortgage VA, you’ll often see escrow shown in the Loan Estimate or Closing Disclosure payment breakdown.
Loan Estimate (LE)
The LE summarizes the loan terms, estimated costs, and monthly payment breakdown (including PITI). It is typically issued within 3 business days after a complete application.
As a Mortgage VA, you may review it for missing or inconsistent info and compare it with the 1003 and docs.
Additional terms you will hear a lot
Additional terms you will hear a lot
MI (Mortgage Insurance)
MI is an extra cost when the borrower puts less than 20% down. It protects the lender, not the borrower. Conventional uses PMI, FHA uses MIP.
As a Mortgage VA, you’ll see MI in the monthly payment breakdown and closing docs.
UFMIP
UFMIP (Upfront Mortgage Insurance Premium) applies to FHA loans. It is a one-time fee, commonly 1.75% of the loan amount, and can be paid at closing or added to the loan balance.
As a Mortgage VA, you’ll see it on the Loan Estimate/Closing Disclosure or FHA case summary.
Rate lock
A rate lock holds a specific interest rate for a set period (often 30–60 days, or varies by lender) to protect the borrower from rate increases. If it expires, it may need extension or relock.
As a Mortgage VA, you may track the expiration date and flag if it’s close to expiring.
1003 (URLA)
The 1003 (URLA) is the official mortgage application form that captures borrower and loan details in one place and must be complete and accurate.
As a Mortgage VA, you may help review it for missing info and inconsistencies vs supporting documents.
Quick Check (answer in 1 sentence each)
Quick Check (answer in 1 sentence each)
What does PITI stand for?
What does DTI compare?
What does LTV compare?
What is AUS used for?
What is an escrow account for?
What does the Loan Estimate show?
When might MI (PMI/MIP) apply?
If a borrower has FHA, what fee might you expect to see upfront?
If the LO says “locked it,” what does that mean?
In one sentence: why is the 1003 important for file accuracy?
Time box: 15–25 minutes total
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