Title Acronyms

Anyone who’s ever come within a hundred feet of anything title insurance has noticed there are a ton of industry acronyms. Let’s face it, title folks love a good acronym salad.

But here at SettleWise, we’re all about clarity. In that spirit, here’s a quick list of some of the most common acronyms you’ll come across in title land…

ALTA: American Land Title Association. This is a national association for title and settlement services agents and professionals. In addition to offering membership and community to people in the title industry, they spearhead advocacy efforts, provide education and resources, publish knowledge and research, and coordinate events throughout the industry.

CTC/C2C: Clear to close. When a mortgage is clear to close, the loan has made it through underwriting, everything has been approved, and it’s time to schedule a closing. Champagne is optional.

FSBO: For sale by owner. No, this is not the name of a clown who does kids’ birthday parties, although it sure does sound like one. “For sale by owner” simply means that the current home or property owner is deciding to sell the property without the help of a real estate agent.

LE: Loan estimate. This is a form that must legally be provided by a mortgage lender to a borrower within three days of application. This form will include an estimate of all closing costs, including title insurance, transfer taxes, recording fees, and other costs.

NCTC/NC2C: Not clear to close. Pretty self-explanatory, and a total bummer. Do not pass go. Do not collect $200…

PO: Owner’s title insurance policy. A one-time fee that protects a property owner from liens, legal defects, forgeries, and other risks.

RESPA: Real Estate Settlement Procedures Act (Regulation X). This is a 1974 law initially overseen by The Department of Housing and Urban Development (HUD), but now by the Consumer Financial Protection Bureau (CFPB). This law was designed to protect borrowers from potential abuses lenders might commit. The law requires lenders to provide a closing cost estimate, it forbids kickbacks, and limits unearned or sneaky fees.

STC: Send to Closing. This is a description line that title professionals, specifically curative speecialists, might add to the top of a document. The "STC" label makes sure that those overseeing a closing are aware that the document has been added to the file. Otherwise, the curative document might be skipped over and not added to the file as needed.

TILA: Truth in Lending Act (Regulation Z). This is a 1968 federal law that requires lenders to disclose key aspects of a loan’s terms to the borrower; specifically, interest rates, repayment schedules, finance charges, and other super important stuff.

TRID: TILA-RESPA Integrated Disclosure Rule. This is a 2015 federal law (often referred to as “Know Before You Owe”) which standardizes how lenders are required to inform borrowers about the terms and conditions of their loan. The various required disclosures of both TILA and RESPA can be confusing, so TRID condensed all those disclosures into two documents, the LE (Loan Estimate) and the CD (Closing Disclosure).