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F
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.
Fair
market value
The highest price that a buyer, willing but not compelled to buy,
would pay, and the lowest a seller, willing but not compelled to sell,
would accept.
Federal
Home Loan Mortgage Corporation "Freddie Mac" (FHLMC)
A privately owned corporation that provides secondary market support for
conventional mortgages. "Freddie Mac" was authorized by Congress
in 1970.
Federal
Housing Administration (FHA)
An agency of the U.S. Department of Housing and Urban Development
(HUD). Its main activity is the insuring of residential mortgage loans
made by private lenders. The FHA sets standards for construction and underwriting
but does not lend money or plan or construct housing.
Federal
National Mortgage Association "Fannie Mae" (FNMA)
A congressionally chartered, shareholder-owned company that is the
nation's largest supplier of home mortgage funds. "Fannie Mae"
was created by Congress in 1938
Fannie
Mae's Community Home Buyer's Program
An income-based community lending model, under which mortgage insurers
and Fannie Mae offer flexible underwriting guidelines to increase a low-
or moderate-income family's buying power and to decrease the total amount
of cash needed to purchase a home. Borrowers who participate in this model
are required to attend pre-purchase home-buyer education sessions.
Finder's
fee
A fee or commission paid to a mortgage broker for finding a mortgage
loan for a prospective borrower.
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.
Flood
insurance
Insurance that compensates for physical property damage resulting from
flooding. It is required for properties located in federally designated
flood areas.
Foreclosure
The legal process by which a borrower in default under a mortgage
is deprived of his or her interest in the mortgaged property. This usually
involves a forced sale of the property at public auction with the proceeds
of the sale being applied to the mortgage debt.
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.
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