All of "F"

Question 1

Fair and Accurate Credit Transactions Act (FACT Act) 2003

Answer 1

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

Question 2

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

Answer 2

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

Question 3

Fair Housing Act (1968)

Answer 3

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

Question 4

Fair Market Value

Answer 4

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

Question 5

Fannie Mae/Freddie Mac Loan Limit

Answer 5

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

Question 6

Federal Mortgage Loans

Answer 6

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

Question 7

Federal National Mortgage Association (Fannie Mae/FNMA)

Answer 7

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

Question 8

Federal Home Loan Mortgage Corporation (Freddie Mac/FHLMC)

Answer 8

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

Question 9

Federal Housing Administration (FHA) (1934)

Answer 9

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

Question 10

Federal Reserve System (FRS)

Answer 10

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

Question 11

Fee Simple

Answer 11

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

Question 12

FHA Mortgage

Answer 12

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

Question 13

FHA Mortgage Insurance (MIP)

Answer 13

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

Question 14

Finance Charge

Answer 14

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

Question 15

Firm Commitment

Answer 15

A promise from a lender to make a mortgage loan.

Question 16

First Mortgage

Answer 16

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

Question 17

First Time Home Buyer

Answer 17

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

Question 18

Fixed Installment

Answer 18

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

Question 19

Fixed Period Adjustable Rate Mortgage

Answer 19

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

Question 20

Fixed Rate Mortgage (FRM)

Answer 20

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

Question 21

Flood Certification Fee

Answer 21

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

Question 22

Flood Insurance

Answer 22

Insurance that covers losses directly caused by flooding.

Question 23

Floor

Answer 23

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

Question 24

Forbearance

Answer 24

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

Question 25

Forced Placed Insurance

Answer 25

Insurance that will protect the property, the homeowner, and the lien holder. (This is for when the homeowners insurance is cancelled)

Question 26

Foreclosure

Answer 26

The action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments.

Question 27

Forefeiture

Answer 27

A destruction of loss or giving up of something as a penalty for wrongdoing because of the failure to perform some obligation.

Question 28

Fraud Enforcement and Recovery Act of May 2009 (FERA)

Answer 28

An act to improve enforcement of mortgage fraud and securities fraud.

Question 29

Fully Amortized Mortgage

Answer 29

If you make every payment according to schedule, your loan will be fully paid off by the end of the term.