Fannie Mae
See Federal National Mortgage Association.

See Fair Housing Act

Fair Housing Act (FHAct)
Prohibits discrimination in real estate transactions because of race, color, religion, sex, handicap, familial status (families with children), or national origin. It applies to mortgage lending as well as other aspects of real estate transactions, including sales and rentals, real estate brokerage, and appraisals.

Farmer’s Home Administration (FMHA)
An agency within the U.S. Department of Agriculture that provides financing for homes and farms in small towns and rural areas.

Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)
Quasi-governmental agency that purchases conventional mortgages from insured depository institutions and HUD-approved mortgage bankers.

Federal Housing Administration (FHA)
A government agency, division of the Department of Housing and Urban Development, that insures residential mortgage loans made by private lenders and sets standards for underwriting mortgage loans.

Federal National Mortgage Association (FNMA or Fannie Mae)
A quasi government agency created by Congress that buys and sells residential loans.

Federal Reserve
The central bank of the United States and major regulatory agency for many commercial banks.

Fee simple
Absolute ownership of real property.

See Federal Housing Administration.

FHA Loan
A loan insured by the FHA open to all qualified home purchasers.

See Federal Home Loan Mortgage Corporation.

Fully Indexed Accrual Rate (Index + Margin).

First mortgage
A mortgage that is in first lien position, taking priority over all other liens. In the case of foreclosure, the first mortgage will be repaid before any other mortgages.

Fixed rate
An interest rate that is fixed for the term of the loan.

Fixed-rate mortgage
A mortgage with an interest rate that doesn’t change for the life of the loan, guaranteeing fixed payments.

Flood insurance
A form of hazard insurance required by lenders to cover properties in flood zones.

The minimum rate of interest payable on an adjustable-rate mortgage.

Floor (Interest – ARM)
A pre-determined amount that establishes the minimum interest rate life of a loan. This can be expressed as a percentage below the start rate, as a rate of interest independent of the start rate, or, quite typically, the “Floor” may be established as being equal to the Margin.

See Farmer’s Home Administration.

See Federal National Mortgage Association.

Grace period given when a lender postpones foreclosure to give the borrower time to catch up on overdue payments.

Foreclosure (or repossession)
Legal process by which the lender forces the sale of a property because the borrower has not met the mortgage terms.

Freddie Mac
See Federal Home Loan Mortgage Corporation.