Terms starting with the letter F

Fannie Mae
A common term used in real estate finance taken from FNMA (Federal National Mortgage Association).  It provides a market for government secured mortgages held by primary lenders and provides them with a ready market so as to permit a greater turnover of money for loans.

Farmers Home Administration (FmHA)
Provides financing to farmers and other qualified borrowers who are unable to obtain loans elsewhere. 

Federal Emergency Management Agency (FEMA)
Federal agency which, among other things, directs the activities of the Federal Insurance Administration and establishes flood insurance rates and terms of coverage, issues policies, processes claims and identifies and maps flood-prone areas.

Federal Housing Administration (FHA)
An agency of the U.S. Department of Housing and Urban Development (HUD).  It insures residential mortgage loans made by private lenders.  FHA also sets standards for underwriting mortgages. 

Federal Home Loan Mortgage Corporation (FHLMC)  
A quasi-governmental agency that purchases conventional mortgage from insured depository institutions and HUD-approved mortgage bankers.  FHLMC buys existing approved mortgage loans and resells them to individual investors or financial institutions. also called Freddie Mac.

Federal National Mortgage Association (FNMA) 
A tax-paying corporation created by Congress to support the secondary market in mortgages on residential properties.  FNMA sells residential mortgages to lenders (Conventional, FHA insured, and VA guaranteed).  FNMA also purchases pools of mortgages from lenders with securities, also know as Fannie Mae, the largest single holder of home mortgages in the United States.

Fee Simple Absolute
Often called a fee or fee simple; the most comprehensive ownership of real property known to the law; the largest bundle of ownership rights possible in real estate.

Fee Tail
An estate or interest in land which cannot be conveyed but which must descend to the heirs of the holder.  Abolished in Colorado.

Fees
Fees include mortgage points and expenses to underwrite and originate a mortgage loan.  See Closing Cost

FEMA - See Federal Emergency Management Agency

FHA - See Federal Housing Administration

F.H.A. Insured Mortgage
A mortgage under which the Federal Housing Administration insures loans made according to its regulations by approved lenders.

FHA Mortgage
A mortgage that is insured by the Federal Housing Administration.  

FHLMC - See Federal Home Loan Mortgage Corporation

FICO 
Is a mathematical model named after its creator, the Fair Isaac Company (FICO).  Credit repositories (Bureaus) have adopted FICO as a tool for lenders in evaluating the risk associated with lending money. 

Fiduciary
Adjective - Confidential, such as a confidential relationship. Fiduciary refers to the relationship of an agent to a principal.

Fiduciary
Noun - A person who is in a position of trust in relation to another party; or a person in a confidential or trust position.

Finance Charge
The total amount of interest, prepaid finance charge and specific insurance premiums (if applicable) that the borrower is expected to pay over the life of the loan.

First Mortgage
A real estate loan with a lien (i.e., mortgage or deed of trust) on the subject property that has priority over any subsequently lien or financial encumbrances.

Fixed Interest Rate
An interest rate that does not change during the entire term or life of the loan.

Fixed Monthly Debt
The amount of monthly payment required to be paid each month.  Sometimes referred to as "minimum monthly payment" for credit card or revolving accounts.

Fixed-Rated Mortgage
A mortgage on which the interest rate is set for the term of the loan.

Fixture
An article of personal property which has been installed in or attached to land or a building thereon, in a permanent manner, so that it is now considered to be a part of the real estate.

FmHA - See Farmers Home Administration

FNMA - See Federal National Mortgage Association 

Forbearance
The act of refraining from taking legal action despite the fact that the mortgage is in arrears.  It is usually granted only when a mortgagor makes satisfactory arrangements to pay the amount owed at a future date.

Foreclosure
A termination of the rights of the mortgagor in the property covered by the mortgage; a court process instituted by a mortgagee or lien creditor to defeat any interest or equity of redemption which the mortgagor or debtor-owner may have in the property.

Freddie Mac - See Federal Home Loan Mortgage Corporation

Funding
Payment of loan money by a lender to a borrower so that he or she can purchase real estate; or, the payment of money by investors to lenders in return for mortgages sold to them by the lender.