Glossary
Mortgage industry and NEXA-specific terms
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Plain-English definitions of the mortgage terms that come up most often in the rest of this encyclopedia.
- APR
- Annual Percentage Rate — the interest rate plus certain financed costs, expressed as a yearly rate. Useful for comparing loans, but not a direct payment figure.
- Broker (mortgage)
- A licensed intermediary who originates loans on behalf of borrowers and submits them to wholesale lender partners. NEXA Lending is a mortgage broker.
- Conforming loan
- A conventional loan within Fannie Mae / Freddie Mac loan limits and guidelines.
- DSCR loan
- A Debt-Service-Coverage-Ratio loan for investment properties, qualified on the property's rental cash flow rather than the borrower's personal income.
- FHA loan
- A mortgage insured by the Federal Housing Administration, allowing lower down payments and more flexible credit.
- LOS
- Loan Origination System — the software LOs use to originate, disclose, and manage a mortgage file. NEXA is widely reported to use Arive.
- Non-QM
- A mortgage that falls outside the Qualified Mortgage box, typically using alternative documentation.
- NMLS
- Nationwide Multistate Licensing System — the U.S. registry for mortgage companies and loan officers. Verify LOs at nmlsconsumeraccess.org.
- NEXA100
- NEXA's loan officer compensation model, marketed as an LO-first split.
- Wholesale lender
- A lender that funds loans submitted by mortgage brokers rather than working directly with retail consumers.