| 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 |
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