|
Fair Credit
Reporting Act |
A federal law that
regulates the disclosure of consumer credit reports by
consumer/credit reporting agencies, and establishes procedures
for rectifying errors on individuals' credit
records |
|
Fair Housing
Act |
A federal law which
prohibits discrimination in housing based on race, color,
religion, sex, handicap, familial status and national
origin |
|
Fair market
value |
The highest price
that a buyer, who is willing but not required to buy, would
pay for a piece of property or home, and the lowest price that
a seller, who is willing but not required to sell, would
accept |
|
Fannie
Mae |
The Federal National
Mortgage Association (also FNMA), a private corporation which
is federally chartered to provide financial products and
services that increase the availability and affordability of
housing, by purchasing mortgages from banks and other lending
institutions; the FNMA is the largest non-bank financial
services company in the world, as well as the largest resource
for financing of home mortgages in the U.S. |
|
Farmer's Home
Administration (FmHA) |
A federal agency
that provides credit assistance to farmers and other
individuals residing in rural areas of the
U.S. |
|
Federal Deposit
Insurance Corporation (FDIC) |
An independent
federal agency that insures the deposits in commercial
banks |
|
Federal Home Loan
Mortgage Corporation (FHLMC) |
A corporation
established to purchase primarily conventional mortgage loans
in the secondary mortgage market |
|
Federal Housing
Administration (FHA) |
An agency of the
U.S. Department of Housing and Urban Development (HUD), whose
function is the insuring of residential mortgage loans made by
private lenders; while setting standards for construction and
underwriting, the FHA itself does not lend money, or construct
housing |
|
FHA
insurance |
Mortgage insurance
provided by the Federal Housing Administration to protect
banks, savings and loans, and mortgage companies against loss
on real estate loans |
|
FHA
loan |
A loan insured by
the Federal Housing Administration, and made by an approved
lender in accordance with the FHA's
regulations |
|
Federal National
Mortgage Association (FNMA) |
A governmental
agency established to purchase any kind of mortgage loans in
the secondary mortgage market from the primary
lenders |
|
Fee
simple |
The greatest
interest in a parcel of land that is possible, or the total
interest in real property |
|
Fiduciary
relationship |
A relationship of
trust and confidence, as between principal and agent, trustee
and beneficiary, attorney and client |
|
Finder's
fee |
A commission paid to
a mortgage broker for sourcing a mortgage loan for a
prospective borrower |
|
First
mortgage |
A mortgage that is
the primary lien against a property |
|
Fixed-rate
mortgage (FRM) |
A mortgage in which
the interest rate remains fixed over the duration of the term
of the loan |
|
Fixture |
Any item of property
that is attached to real property such that it becomes a
permanent part of the real property, and therefore is usually
sold with it |
|
Foreclosure |
A legal proceeding
usually initiated by the lender or creditors, involving a
forced sale of a property owned by a borrower who has
defaulted on payment of, or on the terms of, a loan on said
property, and whereby the borrower is deprived of his or her
interest in the property |
|
Forfeiture |
The loss of money,
property, rights, or privileges due to a breach of legal
obligation |
|
Forfeiture of
Title |
The provision in a
deed that accounts for title being passed to another, should
certain terms not be met or certain circumstances
occur |
|
Freddie
Mac |
The Federal Home
Loan Mortgage Corporation (also FHLMC), a private corporation
that is federally chartered to purchases and sells mortgage
loans; a major player in the secondary market, along with the
Federal National Mortgage Associate (FNMA) |
|
Front
ratio |
The ratio of a
potential borrower's monthly housing costs to their gross
monthly income, utilized by lenders to qualify an applicant
for a loan; typically 28-40 percent is
acceptable |
|
Fully amortized
ARM |
An adjustable-rate
mortgage (ARM) with a monthly payment that is sufficient to
pay off the remaining balance at the interest accrual rate
over the amortization term |
|
Fully indexed
note rate |
Te index value at
the time of application for an adjustable rate mortgage (ARM)
plus the gross margin stated in the
note |
