Glossary and Acronyms "H"

Hybrid Loan

It performs like a fixed and an adjustable rate loan. It has a fixed rate for an initial period before turning into an Adjustable Rate Mortgage (ARM). These initial periods are offered in 3,5,7 and 10 year terms.

HUD-1 Settlement Statement

Standard form which is used to itemize services and fees charged to the borrower by the lender or broker when applying for a loan for the purpose of purchasing or refinancing real estate. (Ref: HUD 1)

Housing Expenses-to-Income Ratio

A ratio comparing housing expenses to before-tax income that is used by lenders to qualify borrowers for a mortgage. The Housing expense measure includes mortgage principal, interest payments, property taxes, Hazard Insurance, Mortgage Insurance, and association fees. The limit for housing is generally 28 percent of the expense-to-income ratio. (Ref: What is Debt to Income Ratio and how is DTI calculated)

Housing Code

A Law or Regulation setting standards for the construction, maintenance, occupancy, use, or appearance of buildings and dwelling units.

Housing and Urban Development (HUD)

An acronym for the U.S. Department of Housing and Urban Development. HUD is a government agency responsible for the implementation and administration of housing and urban development programs. Among other things, HUD administers the Federal Housing Administration, enforces RESPA regulations and oversees Fannie Mae and Freddie Mac.

Home Ownership and Equity Protection Act (HOEPA) 1994

HOEPA was enacted in 1994 as an amendment to the Truth-In-Lending Act (TILA) to address abusive practices in refinances and closed end home equity loans with high interest rates or high fees. (Ref: What Types of loans/lines of credit are subject to HOEPA • Higher Priced Mortgage Loans (12 CFR 1026.35) ?

Home Mortgage Disclosure Act of 1975 (HMDA / Regulation C)

This Regulation provides the public loan data that can be used to assist in determining whether financial institutions are serving the housing needs of their communities, public officials in distributing public-sector investments to attract private investment to areas where where it is needed, and in identifying possible discriminatory lending patterns. The Regulation applies to certain financial institutions, including banks, savings associations, credit unions, and other mortgage lending institutions. (Ref: HMDA - What is the HMDA definition of “dwelling” ? Explain The right to receive an appraisal report • Home Mortgage Disclosure Act (HMDA), 12 CFR Part 1003 (Regulation C)

Homeowner's Warranty (HOW)

A warranty and Insurance Program that, among other coverage, insures a new home for ten years against major structural defects. The program was developed by the Home Owners Warranty Corporation, a subsidiary of the National Association of Home Builders. Builders often provide this type of coverage, and many states provide similar warranty protection by statute.

Homeowners insurance

Insurance to protect your home against damage from fire, hurricanes and other catastrophes. Usually, homeowners insurance also covers you against theft and vandalism, as well as personal liability in case someone is hurt or injured on your property. A lender will likely require you to name it as a payee under the insurance if you need to make a claim. Also called hazard insurance. See Hazard and Homeowners Insurance in detail

Home equity line of credit (HELOC)

A line of credit secured by the borrower's residence. The typical HELOC term is 30 years: a 10-year draw period followed by a 20-year repayment period. A HELOC is often used for home improvements, debt consolidation or other major expenses. In most cases, you can withdraw funds up to your available credit limit for the first 10 years (your draw period) using convenience checks, debit cards or money transfer via Online Banking.

Home Inspection

A non-invasive visual examination of a residential dwelling, performed for a fee, which is designed to identify observed material defects within specific components of said dwelling. (Ref: What is a Home Inspection)

Hazard insurance

Insurance that protects property owners against damage caused by fires, severe storms, earthquakes, or other natural events. If the specific event is covered within the policy, the property owner will receive compensation to cover the cost of any damage incurred. See Hazard Insurance in detail

Home Equity Loan

A line of bank credit given to a homeowner, using the homeowner's equity in the home as collateral. (Ref: HELOC)

Acronyms

HAMP

Home Affordable Modification Program

HARP

(Home affordable refinance programme) HARP is a refinance programme which allows eligible borrowers, with little to no equity through their homes, to take advantage of low interest rates and other refinancing benefits

HECM

(Home equity conversion mortgage) loan for borrowers 62 years and older. uses the equity in their home to create cash disbursements to the borrower

HELOC

(Home equity line of credit) HELOC is a loan in which the lender agrees to lend a maximum amount within an agreed loan term, where the collateral is the borrowers equity in his or her house

HMDA

(Home mortgage disclosure Act) required lenders to report their lending patterns geographically to prevent redlining and reverse redlining

HFC

Held for Sale

HFI

Held for Investment

HOA

home owners association

HOC

Homeownership Center

HPA

Homeowners Information Protection Act

regulates the cancellation of private mortgage insurance


HOEPA

(Home ownership and equity protection Act) regulates high cost home loans

HOI

Home Owners Insurance

HPML

(High priced mortgage loan)

HUD

(U.S department of housing in urban development) HUD is the primary housing in lending regulatory authority in the U.S

HUD 1

Loan Settlement Statement

The Standardized form a borrower receives at closing, detailing all funds paid at closing in a real estate transaction. This includes RE Commissions, Loan Fees, Points, Taxes, Initial Escrow amounts, and other parties receiving distributions.

HUD 1a

Loan Settlement statement for a refinance transaction.

HVCC

Home valuation code of conduct

A Rule effective May 1st, 2009, which states that Fannie May and Freddie Mac are prohibiting lenders from working directly with appraisers. Instead lenders must arrange appraisals through third party management companies.

HVCRE

High Value Credit Risk Estimate

HW

Housing Wire Magazine