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HUD
Home Buying Glossary - F
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Fair
Credit Reporting Act - A consumer protection law that
allows a person to know that is in his/her credit file, have
explanations inserted, and have information investigated and
removed if wrong.
Fair
Market Value - See Market Value.
Fannie
Mae - See Federal National Mortgage Association.
Farmers
Home Administration
- A federal agency
that makes and insures loans for rural housing and farms.
FCRA
- See Fair Credit Reporting Act.
FDIC
- See Federal Deposit Insurance Corporation.
Federal
Deposit Insurance Corporation
- A federal agency that insures deposits in commercial banks
up 100,000 and, along with the Federal Reserve System,
regulates banks and banking procedures.
Federal
Home Loan Bank
- A regulatory and supervisory agency for federally chartered
savings institutions. It
oversees the operations of the Federal Savings and Loan
Insurance Corporation (FSLIC) and the Federal Home Loan
Mortgage Corporation (FHLMC).
Federal
Home Loan Mortgage Corporation
- A secondary
market facility of the Federal Home Loan Bank System that is
authorized to buy and sell conventional home loans and
participating interests in blocks of conventional loans.
Federal
Housing Administration
- A federal
agency within the U.S. Department of Housing and Urban
Development (HUD). Using loan insurance programs to insure mortgages for
lenders, the Federal Housing Administration (FHA) stimulates
these availability of housing for low-and moderate-income
families.
Federal
National Mortgage Association
- A privately owned corporation created by Congress to support
the secondary mortgage market.
It purchases and sells residential mortgages insured by
the Federal Housing Administration (FHA) or guaranteed by the
Veterans administration (VA), as well as conventional home
mortgages.
Federal
Reserve Bank System - Central bank of the United States
established to regulate the flow of money and the cost of
borrowing.
Federal
Savings and Loan Insurance Corporation
- An instrument of the federal government which insures
savings accounts in member savings institutions.
It is similar to the Federal Deposit Insurance
Corporation (FDIC), which insures savings deposits in
commercial banks an mutual savings banks.
Fee
Simple
- The greatest possible interest a person can have in real
estate, including the right to dispose of the property or pass
it on to heirs without limitation.
Fee
Simple Determinable - See Determinable Fee.
Fee
Tail - An estate in which conveyance is limited to the
descendants of the grantee.
FHA
- See Federal Housing Administration.
FHA
Mortgage - A mortgage with federally sponsored mortgage guaranty
insurance provided through the Federal Housing Administration
(FHA).
FHLB
- See Federal Home Loan Bank.
FHLMC
- See Federal Home Loan Mortgage Corporation.
FIAR
- See Fully Indexed Accrual Rate.
Fictitious
Deed of Trust - See Fictitious Mortgage.
Fictitious
Mortgage - A mortgage recorded solely to provide terms for
other mortgages that will incorporate them by reference.
The purpose is to reduce the number of recorded pages.
Fictitious
Name - A name that does not include the surname of every
principal in a business. To use a fictitious name, the
fictitious name publication and recording statutes must be
complied with.
Fiduciary
- A person or legal entity that administers investments for the
benefit of another.
Filtering
Down - Process in which housing passes down to lower
economic groups.
Final
Value Estimate - An appraiser's estimate of the defined
value of a property, arrived at by reconciling the estimates
of value derived from the cost, income capitalization and
sales comparison approaches.
Financing
Package -
The total of all financial interest in a project.
It may include mortgages, partnerships, joint venture
capital interests, stock ownership or any financial
arrangement used to complete a project.
Fire
Block - A horizontal block between studs to prevent a fire
from rising through a wall.
Fire
Wall - A wall built of fireproof material to limit or
contain a fire.
Firm
Commitment
- A lender’s conditions, agreement or promise to make a loan
to a specific borrower on a specific property.
First
Mortgage - A loan on real estate that creates a paramount and prior lien
against real property.
First
Right of Refusal - A right to meet any bona fide offer to
purchase or lease that an owner wishes to accept.
Generally given to tenants.
Fixed
Expenses - Those costs that are more or less permanent and
do not vary in relation to the property's income, such as real
estate taxes and hazard insurance.
Fixed
Interest Rate
- A mortgage feature that structures the loan so that there
will be no increases or decreases in the interest rate during
the life of the loan.
Fixed
Monthly Payment
- A feature in a loan that prevents increases or decreases in
the monthly payment amount during the life of the loan.
Fixed
Rate Mortgage
- The type of loan where the interest rate will not change for
the entire term of the loan.
Fixture
- Personal property that becomes real property upon being
attached to real estate.
Flat
Lease - A level-payment lease with no escalation clause.
Floor
Space - Interior square footage measured from the inside
walls.
Floor
Time - The time that realty offices require their
salespersons to be physically present in the office each week
to answer phones and talk with walk-ins while other agents are
out.
FmHA
- See Farmers Home Administration.
FNMA
- See Federal National Mortgage Association.
Footing
- Concrete poured in the ground upon which the foundation
rests. The footing distributes the building load over
soil.
Forbearance
- An effort made by the lender to offer the borrower a method
of, or alternatives to, making a loan current if it is in
default.
Forbearance
Agreement
- A verbal or written agreement that the lending institution
will delay exercising its right to foreclose on a loan as long
as the borrower performs certain agreed-upon terms and
conditions.
Foreclosure
- An action to eliminate the interest of a borrower in real
estate so as to give the lender good title.
Foreclosure
by Action and Sale
- See Judicial
Foreclosure
Foreclosure
by Advertisement
- See Power of Sale.
For
Sale By Owner - A term used to describe a property sold by
the owner without the assistance of a real estate agent.
Forward
Commitment
- A commitment to purchase loans or mortgage-backed securities
which calls for delivery at some future date - typically
beyond 90 days.
Foundation
- the masonry substructure upon which the building
rests. The foundation rests on the footing.
Freddie
Mac - See Federal Home Loan Mortgage Corporation.
Free
and Clear - Title to real property that is unencumbered by
liens.
Freehold
- A higher-interest category of estates such as fee simple and
life estates.
Front-Foot
- A linear measurement of land based on the number of feet
fronting on a road.
Frost
Line - The depth of frost penetration in the
soil.
FSBO
- Pronounced "fizzbo". See For Sale By Owner.
FSLIC
- See Federal Savings and Loan Insurance Corporation.
Fully
Indexed Accrual Rate
- The base index value of an adjustable-rate mortgage (ARM)
plus the highest gross margin during the life of the loan.
Functional
Obsolescence
- Caused by structural components of a property being outmoded
or inefficient by current standards.
Funding
- The disbursement of funds to complete a
transaction. In mortgage finance, it occurs when the
lender provides money to close a real estate sale.
Funding
Fee - A fee charged by the VA for a VA loan. The
veteran can financing the fee, pay for it at closing or have
the seller pay for the fee. Qualifying disabled veterans
are exempt from this fee. Future
Interest - An estate in real property that provides for
the benefits of possession and enjoyment at some future date.
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