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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.
Fannie Mae
Fannie Mae is a New York Stock Exchange company and the largest non-bank financial
services company in the world.
It operates pursuant to a federal charter and is the nation's largest source of financing for home
mortgages.
Over the past 30 years, Fannie Mae has provided nearly $2.5 trillion of mortgage financing for over 30 million
families.
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.
Fee Simple
The greatest possible interest a person can have in real estate.
Fee Simple Estate
An unconditional, unlimited estate of inheritance that represents the greatest estate and
most extensive interest in land that can be enjoyed. It is of perpetual duration.
When the real estate is in a condominium project,
the unit owner is the exclusive owner only of the air space within his or her portion of the building (the unit)
and is an owner in common with respect to the land and other common portions of the property.
FHA mortgage
A mortgage that is insured by the Federal Housing
Administration (FHA).
Also known as a government mortgage.
Fiduciary
One who acts, in a legal role, in the best interest of others.
Firm Commitment
A lender's agreement to make a loan to a specific borrower
on a specific property.
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.
Fixture
Personal property that becomes
real property when attached in a permanent manner to
real estate.
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.
Forfeiture
The loss of money, property, rights, or privileges due to a breach of legal obligation.
401(k)/403(b)
An employer-sponsored investment plan that allows individuals to set aside tax-deferred
income for retirement or emergency purposes.
401(k) plans are provided by employers that are private corporations.
403(b) plans are provided by employers that are not for profit organizations.
401(k)/403(b) Loan
Some administrators of 401(k)/403(b) plans allow for loans
against the monies you have accumulated in these plans.
Monies must be repaid to avoid heavy penalty charges.
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