A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- 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.
- Fannie Mae
See Federal National Mortgage
Association.
- Farmers
Home Administration (FmHA)
Provides financing to farmers and other qualified borrowers who are unable to obtain loans
elsewhere.
- Federal Home Loan Mortgage
Corporation (FHLMC) also called "Freddie Mac"
Is a quasi-governmental agency that purchases conventional mortgage from insured
depository institutions and HUD-approved mortgage bankers.
- Federal Home Loan Bank Board (FHLBB)
The former name for the regulatory and supervisory agency for federally chartered savings
institutions. Agency is now called the Office of Thrift Supervision
- Federal Housing Administration (FHA)
A division of the Department of Housing and Urban Development. Its main activity is the
insuring of residential mortgage loans made by private lenders. FHA also sets standards
for underwriting mortgages.
- Federal National Mortgage Association (FNMA) also called Fannie Mae.
A tax-paying corporation created by Congress that purchases and sells conventional
residential mortgages as well as those insured by FHA or guaranteed by VA.
This institution, which provides funds for one in seven mortgages, makes mortgage money
more available and more affordable.
- FHA
See Federal Housing Administration.
- FHA Loan
Loan insured by the Federal Housing Administration open to qualified home purchasers.
While limited in size, they are generous enough to handle moderate-priced homes almost
anywhere in the country.
- FHA
mortgage insurance
Requires a fee (up to 3 percent of the loan amount) paid at closing to insure the loan
with FHA. In addition, FHA mortgage insurance requires an annual fee of up to 0.5 percent
of the current loan amount, paid in monthly installments. The lower the down payment, the
more years the fee must be paid. <
- FHLBB
See Federal Home Loan Bank Board.
- FHLMC
See Federal Home Loan Mortgage
Corporation.
- FICO score
FICO (Fair Isaac Corporation) developed a credit score model that is calculated statistically, with information from a consumer's credit files. The FICO score represents the creditworthiness of the borrower. It showes how likelly will the borrower pay his or her debts. A credit score is primarily based on credit report information, typically from the three major credit bureaus.
- Firm Commitment
A promise by FHA to insure a mortgage loam for a specified property and borrower. A
promise from a lender to make a mortgage loan.
- First mortgage
A mortgage that is the primary lien against a property.
- Fixed Rate
Mortgage (FRM)
A mortgage in which the interest rate does not change during the entire term of the loan.
Click here to read a little more about the fixed rate mortgage.
- Flood
insurance
Insurance that compensates for physical property damage resulting from flooding. It is
required for properties located in federally designated flood areas.
- FmHA
See Farmers Home Administration.
- Forbearance
The lender's postponement of legal action when a borrower is delinquent. It is usually
granted when a borrower makes satisfactory arrangements to bring the overdue mortgage
payments up to date.
- Foreclosure
A legal term applied to any of the various methods of enforcing payment of the debt
secured by a mortgage, or deed of trust, by taking and selling the mortgaged property, and
depriving the mortgagor of possession.
- FRM
See Fixed-rate mortgage.
- Freddie
Mac
See Federal Home Loan Mortgage
Corporation.
- 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.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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