- Eviction
A legal proceeding by a landlord to recover possession
of real property from the tenant.
- Examination of Title
The report on the title of a property from the public
records or an abstract of the title.
- Fair Credit Reporting Act
- A consumer protection law that regulates the disclosure and use of consumer credit information, establishes rules for credit reporting to consumer credit reporting agencies, and establishes procedures for a consumer to view his or her credit report and correct mistakes on it.
- Fair Market Value
The price that a buyer, willing but not compelled to
buy, and a seller, willing but not compelled to sell, would agree on.
- Fannie Mae (Federal National Mortgage Association FNMA)
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. It adds liquidity to the mortgage market by investing in home loans
through the country.
- 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 loan
underwriting but does not lend money or plan or construct housing.
- Fee simple
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 Home Loan
A mortgage home loan that is insured by the Federal
Housing Administration (FHA). Also known as a government loan.
- Firm Commitment
A lender's agreement to make a loan to a specific
borrower on a specific property.
- First Mortgage
A home loan that is the primary lien against a
property.
- Fixed Installment
The monthly payment due on a mortgage loan. The fixed
installment includes payment of both principal and interest.
- Fixed Period ARM
Provides a fixed rate for 3, 5, 7 or 10 years then
adjusts annually based on a financial index for the remaining loan term.
- Fixed Rate loan
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 (such as a lighting fixture or an
in-ground spa).
- Flood Insurance
Insurance that compensates for physical property
damage resulting from flooding. It is required for properties located in federally
designated flood areas.
- Forbearance
- An intentional delay in collecting a debt or demanding performance on a
contract, usually for a specific period of time. Forbearance is often
consideration for a promise by the debtor to pay an added amount.
- Foreclosure
The legal process by which a borrower's interest in
mortgaged property is taken because of a default on the loan. 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.
- Freddie Mac (Federal Home Loan Mortgage Corporation)
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.
- Good Faith Estimate
An estimate of all closing fees
including pre-paid and escrow items as well as lender charges; must be given to
the borrower within three days after submission of a loan application.
- Government Loan
- A loan that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Contrast with conventional loan.
- Government National Mortgage Association (GNMA or Ginnie Mae)
- A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Created by Congress on September 1, 1968, GNMA assumed responsibility for the special assistance loan programs formerly administered by Fannie Mae.
- Graduated Payment Mortgage
- A scheme that allows the borrower the flexibility to
pay a lower installment sum at the beginning of the loan tenure before
progressing onto a higher installment sum as the borrower's purchasing power
improves.
- Grantee
- The person to whom an interest in real property is conveyed (e.g. the buyer).
- Grantor
- The person who conveys an interest in real property (e.g. the seller
Loan Glossary 
