F

Fair Credit Reporting Act
A federal law that allows individuals to examine and correct information used by credit reporting services.

Fannie Mae (FNMA)
Federal National Mortgage Association, a federally chartered corporation that purchases mortgages and packages them to sell as securities.

Federal Fair Housing Law
A federal law that forbids discrimination on the bais of race, color, sex, religion, or national origin in the selling or renting of property.

Federal Housing Administration (FHA)
An agency within HUD that administers many loan programs designed to make housing more available.

Fee Agreement
An agreement between a borrower and a broker which normally specifies the relationship between them and the amount of compensation to the broker.

Fee Simple
Absolute ownership of real property.

Fiduciary
An obligation to act in the best interest of another party. This type of obligation typically exists when one person places special trust and confidence in another person and that responsibility is accepted.

First Mortgage
That mortgage which is recorded at the earliest time. The time of recording is the sole criteria. Size of loan and type of mortgage are immaterial. When the first mortgage is paid off and released, the second mortgage (if any existed) becomes the first mortgage.

Fixed Expenses
Operating expenses that generally do not vary with occupancy and which prudent management will pay whether the property is occupied or vacant.

Fixed Payment Mortage
A loan secured by real property which features a periodic payment of interest and principal which is constant over the term of the loan.

Fixed Rate Mortgage
A mortgage with an interest rate that remains the same through the life of the loan.

Floodplain
A level land area subject to periodic flooding from a contiguous body of water.

Forbearance
A course of action a lender may pursue to delay foreclosure or legal action against a delinquent borrower

Foreclosure
The process by which the mortgagor’s (borrower’s) rights to a property are terminated. While the general process is similar from state to state, the actual procedures tend to vary greatly.

Freddie Mac (FHMLC)
Federal Home Loan Mortgage Corporation, a federally chartered corporation that purchases mortgages and packages them to sell as securities.

FSBO
For sale by owner.

Functional Utility
The ability of a property or building to be useful and to perform the function for which it is intended according to market tastes and standards; the efficiency of a building’s use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms.