Fannie Mae
See Federal National Mortgage Association
Farmer’s Home Administration (FmHA)
An agency of the U.S. Department of Agriculture that provides financing for purchasers of homes and farms in small towns and rural areas.
Federal Deposit Insurance Corporation (FDIC)
Independent deposit insurance agency created by Congress to maintain stability and public confidence in the nation’s banking system.
Federal Home Loan Bank Board (FHLBB)
Former name for the regulatory and supervisory agency of federally chartered savings institutions, now called the Office of Thrift Supervision.
Federal Home Loan Mortgage Corporation (FHLMC
Quasi-governmental agency that purchases conventional mortgages from insured depository institutions and HUD-approved mortgage bankers.
Federal Housing Administration (FHA)
Government agency, division of the Department of Housing and Urban Development, which insures residential mortgage loans made by private lenders and sets standards for underwriting mortgage loans.
Federal National Mortgage Association (FNMA)
Popularly known as Fannie Mae. A privately owned corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by FHA or guaranteed by the VA, as well as conventional home mortgages.
Federal Reserve
Central bank of the United States and major regulatory agency for many commercial banks.
Fee Simple
An estate in which the owner has unrestricted power to dispose of the property as he wishes, including leaving by will or inheritance. It is the greatest interest a person can have in real estate.
FHA
See Federal Housing Administration
FHA Loan
A loan insured by the Federal Housing Administration (of the Department of Housing and Urban Development).
FHLBB
See Federal Home Loan Bank Board
FHLMC
See Federal Home Loan Mortgage Corporation
Finance Charge
The total cost a borrower must pay, directly or indirectly, to obtain credit according to Regulation.
First Mortgage
A mortgage that is in first lien position, taking priority over all other liens. In the case of a foreclosure, the first mortgage will be paid before any other mortgage.
Fixed Rate
An interest rate that is fixed for the term of the loan.
Fixed-Rate Mortgage
A mortgage whose interest rate does not change for the life of the loan. The payments are also fixed.
Flood Insurance
A form of hazard insurance required by lenders to cover property damage or loss in flood zones.
Floor
The minimum rate of interest payable on an adjustable-rate mortgage.
FmHA
See Farmer’s Home Administration
FNMA
See Federal National Mortgage Association.
Forbearance
Grace period given when a lender postpones foreclosure to give the borrower time to catch up on overdue payments.
Foreclosure (Repossession)
Legal process by which the lender forces the sale of a property when the borrower has not met the mortgage terms.
Freddie Mac
See Federal Home Loan Mortgage Corporation.