Mortgage Glossary – F
Fair, Isaac and Co.
The company that invented credit scoring software.
A common nickname for the Federal National Mortgage Association.
See Federal Deposit Insurance Corporation.
Federal Deposit Insurance Corporation (FDIC)
Independent deposit insurance agency created by Congress to maintain stability and public confidence in the nation’s banking system.
Federal Home Loan Mortgage Corporation –
(FHLMC, or Freddie Mac)
A Quasi government agency that buys conventional loans that are underwritten to its specific guidelines. These guidelines are an industry standard for residential conventional lending.
Federal Housing Administration (FHA)
A federal agency within the Department of Housing and Urban Development (HUD), which insures residential mortgage loans made by private lenders and sets standards for underwriting mortgage loans.
Federal National Mortgage Association (FNMA, or Fannie Mae)
This agency buys loans that are underwritten to its specific guidelines. These guidelines are an industry standard for residential conventional lending.
Absolute ownership of real property giving the right to dispose or pass on the property.
See Federal Housing Administration.
Fixed- or adjustable-rate loans insured by the U.S. Department of Housing and Urban Development. FHA loans are designed to make housing more affordable, particularly for first-time homebuyers.
Federal Home Loan Mortgage Corporation.
The most common credit-scoring model used by lenders, it is also known as a Fair, Isaac score. Your FICO can range from 200 to 900. According to this model, the higher your score, the less likely you are to default on your loan.
A mortgage which is in first lien position, taking priority over all other liens. In the case of a foreclosure, the first mortgage will be repaid before any other mortgages.
Fixed-rate loans have interest rates and payment that remain the same for the life of the loan.
Insurance that compensates for physical damage to a property by flood. Typically not covered under standard hazard insurance.
Federal National Mortgage Association.
The act by the lender of refraining from taking legal action on a mortgage loan that is delinquent.
Foreclosure (or Repossession)
A legal process by which a mortgaged property may be sold to pay off a mortgage loan that is usually in default.
A common nickname for the Federal Home Loan Mortgage Corporation.