All of "F" Flashcards

1
Q

Fair and Accurate Credit Transactions Act (FACT Act) 2003

A

An amendment to FCRA (Fair Credit Reporting Act) that was added to protect consumers from identity theft.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Fair Credit Reporting Act (FCRA/ Reg V)(1970)

A

Promotes fairness privacy of info in the files of consumer reporting agencies. (Consumers have access to their credit reports)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Fair Housing Act (1968)

A

Makes it illegal to discriminate people base on race, sex, religion, family status, if they refuse to sell or rent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Fair Market Value

A

The price that a seller is willing to accept & a buyer is willing to pay on the open market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Fannie Mae/Freddie Mac Loan Limit

A

The dollar cap on the size of a mortgage that they are willing to buy. (These numbers change yearly)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Federal Mortgage Loans

A

Loans insured by the federal gov’t and issued by a bank or lender. (EX: FHA, VA, USDA loans)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Federal National Mortgage Association (Fannie Mae/FNMA)

A

A private cooperation that provides a secondary mortgage market and sale of conforming mortgages.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Federal Home Loan Mortgage Corporation (Freddie Mac/FHLMC)

A

A corporation that purchases both conventional conforming 1st mortgages and other approved banks.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Federal Housing Administration (FHA) (1934)

A

Insures mortgages loans on houses meeting the agencies standards. (Provides Mortgage Insurance on single family, multifamily, etc.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Federal Reserve System (FRS)

A

The central bank of the U.S that sets credit and monetary policy by fixing the reserves to be maintained.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Fee Simple

A

AN interest in land that endures until the current holder dies without heirs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

FHA Mortgage

A

A mortgage that is insured fully by FHA.(Federal Housing Administration)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

FHA Mortgage Insurance (MIP)

A

An additional fee you pay to protect the lenders financial interests in case you default on your FHA Loan. (FHA borrowers are required to pay 2 mortgage insurance premiums. 1 up front at closing, and the other annually for as long as you repay the loan.)

-Equation for FHA
.85% X mortgage amount divided by 12 = the monthly premium added to the monthly payment
0r
1.75% X mortgage amount divided by 100= MIP

EX: 1.75% loan size
$300,000 for mortgage amount
$300,000 X 1.75= $525,000
$525,000 / 100 = $5,250 as the mortgage insurance premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Finance Charge

A

The cost of borrowing money, including interest and other fees. (A fee charged from the use of credit or extension of existing credit)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Firm Commitment

A

A promise from a lender to make a mortgage loan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

First Mortgage

A

A primary mortgage that is senior to all mortgages.(Initial loan obtained for a property)

17
Q

First Time Home Buyer

A

An individual who has had no ownership during the 3 year period ending on the date of purchase, which includes your spouse.

18
Q

Fixed Installment

A

Th monthly payment due on a mortgage, calculated by the lender.

19
Q

Fixed Period Adjustable Rate Mortgage

A

An adjustable rate mortgage with an initial fixed interest rate, after it expires the rate starts to adjust based on an index plus margin.

20
Q

Fixed Rate Mortgage (FRM)

A

A mortgage with an interest rate that remains the same for the entire term of the loan.

21
Q

Flood Certification Fee

A

A fee included in closing costs to verify that your property does not reside in a flood zone.

22
Q

Flood Insurance

A

Insurance that covers losses directly caused by flooding.

23
Q

Floor

A

On an ARM Loan, the margin is the floor and the lowest interest rate can go over the life of the loan.

24
Q

Forbearance

A

The action of refraining from exercising a legal right, especially enforcing the payment of a debt.

25
Forced Placed Insurance
Insurance that will protect the property, the homeowner, and the lien holder. (This is for when the homeowners insurance is cancelled)
26
Foreclosure
The action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments.
27
Forefeiture
A destruction of loss or giving up of something as a penalty for wrongdoing because of the failure to perform some obligation.
28
Fraud Enforcement and Recovery Act of May 2009 (FERA)
An act to improve enforcement of mortgage fraud and securities fraud.
29
Fully Amortized Mortgage
If you make every payment according to schedule, your loan will be fully paid off by the end of the term.