A | B | C | D | E | F | G | H | I | JK | L | M | N | O | P | Q | R | S | T | U | V | W | YZ |     Home Fair Credit Reporting Act A consumer protection law that regulates the disclosure of consumer credit reports by consumer/credit reporting agencies and establishes procedures for correcting mistakes on one's credit record. Fair Market Value 1. The value of a property as determined by a licensed, professional appraiser, primarily based on the sales prices of comparable properties recently sold nearby 2.The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept. Fannie Mae's Community Home Buyer's Program An income-based community lending model, under which mortgage insurers and Fannie Mae offer flexible underwriting guidelines to increase a low- or moderate-income family's buying power and to decrease the total amount of cash needed to purchase a home. Borrowers who participate in this model are required to attend pre-purchase home-buyer education sessions. Farmers Home Administration (FmHA) Financing provided to farmers and other qualified borrowers who are unable to acquire loans elsewhere. FDIC (Federal Deposit Insurance Corporation). Provides insurance of accounts for institutions whose deposits were formerly covered by the Federal Savings & Loan Insurance Corporation. (FSLIC). Federal Home Loan Mortgage Corporation, Freddie Mac (FHLMC) A private corporation authorized by Congress, which became an independent, stockholder-owned government corporation with the passage of FIRREA. FHLMC promotes the flow of funds into the housing markets by purchasing conventional mortgages in the secondary market and selling securities backed by those mortgages in the capital market. Federal Housing Administration (FHA) A division of the Department of Housing and Urban Development. The FHA's main activity is the insuring of residential mortgage loans made by private lenders. It sets standards for construction and underwriting. FHA neither lends money, nor plans, nor constructs housing. Federal Housing Finance Board (FHFB) It oversees the credit functions of the twelve regional Federal Home Loan Banks. Federal National Mortgage Association (FNMA) A government-sponsored corporation, owned solely by private investors, created to provide support to the secondary market for FHA and VA mortgages and conventional mortgages. Fee Simple Private ownership of real estate in which the owner has the right to control, use, and transfer the property at will. Fee Simple Estate An unconditional, unlimited estate of inheritance that represents the greatest estate and most extensive interest in land that can be enjoyed. It is of perpetual duration. When the real estate is in a condominium project, the unit owner is the exclusive owner only of the air space within his or her portion of the building (the unit) and is an owner in common with respect to the land and other common portions of the property. FHA Loan Government loans are loans that are guaranteed or purchased by government organizations. Two of the most popular Government Loans are the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA). FHLBB (Federal Home Loan Bank Board) FICO FICO scores were developed by Fair Isaac & Company, Inc. for each of the three major credit reporting agencies: Equifax, Experian, and TransUnion. These scores only consider the information in an individual's credit file, not income or savings. Finance Charge The total dollar amount your loan will cost you. It includes all interest payments for the life of the loan, any interest paid at closing, your origination fee, and any other charges paid to the lender and/or broker. Appraisal, credit report, and title search fees are not included in the finance charge calculation. Financial Statement A financial report that includes a balance sheet, income statement, and statement of cash flows. Finder's Fee A fee or commission paid to a mortgage broker for finding a mortgage loan for a prospective borrower. FIRREA (Financial Institutions Reform, Recovery and Enforcement Act of 1989). An act signed into law in August 1989, by President Bush that restructured the thrift regulatory an insurance system. First Mortgage The mortgage that is the primary lien against a property and has first claim in the event of default. Fixed Assets Assets that will not be turned into cash within a year, such as manufacturing equipment, real estate, or furniture. Also called "long-term assets." Fixed Installment The monthly payment due on a mortgage loan. Fixed Second Mortgage See home equity loan. Fixed-Rate Mortgage (FRM) A mortgage in which the interest rate does not change during the entire term of the loan. Fixture Personal property that becomes real property when attached in a permanent manner to real estate. Floating Rate Mortgage See Adjustable Rate Mortgage (ARM) Flood Insurance Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas. Foreclosure The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt. Foreclosure Bailout These are loans designed to take the equity of your home or to refinance your home in order to pay off existing loan payment lates that have gone into default. Forfeiture The loss of money, property, rights, or privileges due to a breach of legal obligation. Foundation The concrete slab beneath the property that holds the property in place. Front Ratio The proportion of a purchaser's income that lenders will allow for principal, interest, taxes, and insurance on a property. Used in the evaluation of a loan application. Full Disclosure A requirement that sellers fully disclose all known defects in a property when selling it. Full Recasting Setting the principal and interest payments to the level that will fully amortize the loan's outstanding balance over the remaining term using the fully indexed accrual rate at the recasting point. Fully Amortized ARM An adjustable-rate mortgage (ARM) with a monthly payment that is sufficient to amortize the remaining balance, at the interest accrual rate, over the amortization term. Fully Indexed Accrual Rate The interest (accrual) rate resulting from the index at closing (or at another point in the loan) plus the lender's full spread, rounded as prescribed in the loan documents (often to the nearest 1/8th of 1%). Future Acquired Property A loan agreement may state that the loan is a lien on all property presently owned or which the borrower may acquire in the future. Future Interest A current interest in the land, but only a future right to possession and enjoyment of the land, such as a remainder interest, reversionary interest, etc.