Mortgage and Real Estate Terms Sorted Alphabetically:
F - Fair Credit Reporting Act, fair market value, Fannie
Mae…more
FAIR CREDIT REPORTING ACT (FCRA) - a Federal law,
in part, giving one the right to see his or her credit
report so that errors may be corrected. A lender loan
banker/agent (credit grantor) refusing to advance
credit based upon a credit report it receives from
a credit repository, is compelled by law to reveal
to the potential borrower, the name of the credit
repository which issued the lender loan banker/agent
with the credit report. You are allowed to see that
report, dispute any errors contained in it, and have
a copy of it - BUT, not from the lender loan banker/agent;
your copy must be obtained from the credit repository
directly.
FAIR MARKET VALUE - the price at which a property
is transferred between a willing buyer and a willing
seller, each of whom has a reasonable knowledge of
all pertinent facts, and neither being under any compulsion
to buy or sell. Generally, the likely selling price
of your home, as appraised.
FANNIE MAE (FNMA) - The Federal National Mortgage
Association (FNMA), the nation's largest mortgage
investor. Created in 1968 by an amendment to Title
III of the National Housing Act (12 USA 1716 et seq.)
to fund FHA type loans, this stockholder owner corporation,
a portion of whose Board of Directors is appointed
by the President of the United States, supports the
secondary market in mortgages on residential property
with mortgage purchase money and securitization programs
for "conforming" residential real property
loans ("conforming" started in the early
1970's).
FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) - Federal
agency, which, among other things, directs the activities
of the Federal Insurance Administration, and established
flood insurance rates and terms of coverage, issues
policies, processes claims, and identifies and maps
flood-prone areas nationwide.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) - a
Great Depression agency originally established by
the Federal Banking Act of 1933, to protect depositors
from loss.
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) -
See Freddie Mac below.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - see
Fannie Mae above.
FF&E - "Furniture, Fixtures & Equipment",
a phrase often used in commercial equipment leasing.
A combination of items like "furniture"
(in a dentist or lawyer’s office), "fixtures"
(liquor store room - mounted shelves, security system)
& "equipment" (bakery - baking equipment,
restaurant - walk-in refrigerator/freezer) commonly
utilize commercial small business equipment finance-lease
structures.
FHA (FEDERAL HOUSING ADMINISTRATION) MORTGAGE - a
loan insured by the Federal Housing Administration.
FHA mortgages require lower down payments than conventional
mortgages, and also feature less stringent income
and financial requirements.
FIRST AND SECOND MORTGAGES - the documents that entitle
a lender to the property that secures the loan if
the borrower fails to meet his/her obligations per
the loan arrangement. While your first mortgage enables
you to buy your home in the first place, a second
mortgage provides for refinancing and literally hundreds
of different lifetime opportunities (see difference
between "mortgage" and "trust deed").
FIRST LIEN - primary claim by the lender for satisfaction
of outstanding debt. Gives lender the right to raise
this money by foreclosing property if you fail to
make payments you've agreed to.
FIXED AND ADJUSTABLE RATES - the way the interest
on your loan is determined. A fixed rate of interest
stays the same over the life of the loan; an adjustable
(or "variable") rate changes, increasing
or decreasing periodically according to an index which
reflects general trends.
FIXED-RATE MORTGAGE - a home loan with a mortgage
interest rate that remains constant for the life
of the loan. The most common fixed-rate mortgages
have typically been 30
year fixed rate mortgages and 15
year fixed rate mortgages.
FORBEARANCE - the act of refraining from taking legal
action despite the fact that the mortgage is in arrears.
It is usually granted only when a mortgagor makes
satisfactory arrangements to pay the delinquent amount
owed at a future date.
FREDDIE MAC (FHLMC) - The Federal Home Loan Mortgage
Corporation (FHLMC), the second largest investor of
residential real estate mortgage loans, created by
Congress in Title III of the Emergency Home Finance
Act of 1970 (12 USC 1451 et seq.), to provide an alternative
source to Fannie Mae, for "conforming" residential
real estate mortgage loans. This stockholder owned
corporation, a portion of whose Board of Directors
is appointed by the President of the United States,
supports the secondary market in mortgages on residential
property with mortgage purchase money and securitization
programs for "conforming" residential real
property loans.
FRONTAGE - the property line abutting the most important
adjacent property, usually a street, lake, river or
ocean.
FULL INCOME VERIFICATION - a requirement for fully
documented proof of income; loans that contain this
requirement can usually offer lower interest rates
than formal no-income verification programs. Other
types of income verification also exist including
stated income mortgages and no doc mortgages .
FUNCTIONAL DEPRECIATION - in real estate, a loss
of value due to advancements in technology or design
that makes the features of the current facility obsolete.
Also called functional obsolescence.
Mortgage Glossary - Mortgage and Real Estate Terms Sorted Alphabetically:
Mortgage
Glossary
A
- adjustable rate mortgage, adjustment interval, amortization,
annual percentage rate (APR) - more
B
- balloon mortgage, bankruptcy, basis point, beneficiary
- more
C
- caps, cash flow, cash out (second mortgage), cash
out refinance - more
D
- debt consolidation, debt service, debt reduction
plan, debt-to-income ratio - more
E
- earned and unearned income, earnest money, easement,
economic life - more
F
- Fair Credit Reporting Act, fair market value, Fannie
Mae - more
G
- good faith estimate, grace period, gradual payment
mortgage (GPM), grantee - more
H
- home equity, home improvement loan, Home Mortgage
Disclosure Act (HMDA) - more
I
- index, in file credit report, inflation, initial
interest rate, ingress and egress - more
L
- lender buy-down mortgage, liability insurance, LIBOR,
loan application - more
M
- manufactured home, market value, maximum loan amount,
mechanic's liens - more
N
- negative amortized (Neg/AM), Neg AM Loans, negative
cash flow, net worth - more
O
- obsolescence, off-site improvements, on-site improvements,
ordinary income - more
P
- par, partial payment, partnership, party wall, payment
shock - more
Q
- quality control, quit claim deed, quote - more
R
- rate shopper, real property, real estate loans,
reconciliation - more
S
- sales contract, satisfaction or mortgage, seasoned
mortgage, second mortgage - more
T
- tax lien, tenancy in common, tenant, term, title,
title insurance - more
U
- underwriting, unencumbered property, uniform commercial
code (UCC)ï -more
V
- VA (Department of Veterans Affairs) Mortgage, vacancy
rate, VA funding fee - more
