FRM
Abbreviation with 2 meanings
| Stands for | Fixed-rate mortgage |
|---|---|
| Meanings | 2 |
| Categories | Business & Finance, Education & Academia |
FRM has two meanings. It stands for Fixed-rate mortgage (real estate & mortgage) or Financial Risk Manager (professional certification).
Meanings of FRM at a glance
| # | FRM stands for | Context |
|---|---|---|
| 1 | Fixed-rate mortgage | Business & Finance › Real Estate & Mortgage |
| 2 | Financial Risk Manager | Education & Academia › Professional Certification |
1. Fixed-rate mortgage
Business & Finance · Real Estate & Mortgage Abbreviations
Home loan whose interest rate and principal-and-interest payment stay the same for the entire term, most commonly 30 or 15 years, protecting the borrower from rising rates.
Example: Rates on the 30-year FRM averaged just over 6% this week.
The 30-year fixed-rate mortgage, with the right to prepay without penalty, is unusual internationally and is made possible in the US largely by Fannie Mae and Freddie Mac buying such loans. Freddie Mac has published weekly average FRM rates since 1971. Borrowers with FRMs benefit from refinancing when rates fall.
2. Financial Risk Manager
Education & Academia · Professional Certification Abbreviations
Risk management certification from the Global Association of Risk Professionals (GARP), earned by passing a two-part exam on quantitative analysis, market, credit and operational risk, and showing two years of risk-related work experience. Banks, asset managers and regulators value it for risk roles.
Example: The bank's market risk team hires FRM holders for its trading desk oversight.
GARP was founded in 1996 and first offered the FRM in 1997. Part I and Part II can be taken on the same day, but Part II is graded only if Part I is passed. Holders must meet continuing education expectations.
Related abbreviations
More real estate & mortgage abbreviations
- FHLMC – Federal Home Loan Mortgage Corporation
- FNMA – Federal National Mortgage Association
- FP – Fireplace
- FR – Family room
- FSBO – For sale by owner
- FTHB – First-time homebuyer
- GFE – Good faith estimate
- GLA – Gross leasable area
See all 95 real estate & mortgage abbreviations →