Federal National Mortgage Association (FNMA,
Fannie Mae): Fannie Mae purchases loans from
lenders, turns them into securities, and then sells
them on Wall Street.
Federal Home Loan Bank Board (FHLBB):
Provides financing to farmers.
Farmer's Home Administration (FmHA):
An agency, under the Dept of Agriculture that administers
assistance programs for purchaser of homes and farms
in small towns and rural areas.
Federal Home Loan Mortgage Corporation (FHLMC,
Freddie Mac): Freddie Mac purchases loans
from members of the Federal Reserve, turns them into
securities and trades them on Wall Street.
Federal Housing Administration (FHA):
An agency under the Dept of Housing and Urban Development
that administers loan programs and issues loan guarantees
to make more housing available.
Federal Reserve System: The central
federal banking system that regulates and provides
services to member commercial banks. Also has the
responsibility for conducting federal monetary policy.
Fee Simple: Absolute ownership of
real property; owner is entitled to the entire property
with unconditional power of disposition during the
owners life and upon his death the property descends
to the owner's designated heirs.
Fidelity Bond: An assurance, generally
purchased by an employer, to cover employees who are
entrusted with valuable property or funds.
Fiduciary: A trusted person with
specific duties to act in the best interests of a
client.
Finance Charge: Interest charged
by the lender.
First Mortgage: The primary lien
on a property. This is the mortgage that gets settled
first in case of repossession.
Fixture: Improvements or personal
property attached to the land so as to become a part
of the real estate. Fixtures are transferred to the
buyer upon sale of the property. To determine whether
an item is a fixture include :
Flood Insurance: This insurance
covers the property in case of a natural flood. It
is often required in areas designation as flood zones.
Foreclosure (Repossession): A legal
process by which the lender forces the owner of a
property to sell it due to his failure to meet the
conditions of the mortgage (e.g. failure to make payments).
Free and Clear: A property upon which
there are no liens.
For Sale By Owner (FSBO): A property
that is not listed with a real estate broker, and
is placed for sale with the owner acting on his own.
Fully Indexed Rate: The fully indexed
rate is the value of the index plus the index margin.
See Adjustable Rate Mortgages.
