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Fair Credit Reporting Act - A consumer protection law that allows a person to know that is in his/her credit file, have explanations inserted, and have information investigated and removed if wrong. 

Fair Market Value - See Market Value.

Fannie Mae - See Federal National Mortgage Association.  

Farmers Home Administration -  A federal  agency that makes and insures loans for rural housing and farms.  

FCRA - See Fair Credit Reporting Act.

FDIC -  See Federal Deposit Insurance Corporation.

Federal Deposit Insurance Corporation - A federal agency that insures deposits in commercial banks up 100,000 and, along with the Federal Reserve System, regulates banks and banking procedures.

Federal Home Loan Bank -  A regulatory and supervisory agency for federally chartered savings institutions.  It oversees the operations of the Federal Savings and Loan Insurance Corporation (FSLIC) and the Federal Home Loan Mortgage Corporation (FHLMC).

Federal Home Loan Mortgage Corporation -  A secondary market facility of the Federal Home Loan Bank System that is authorized to buy and sell conventional home loans and participating interests in blocks of conventional loans.

Federal Housing Administration -  A federal agency within the U.S. Department of Housing and Urban Development (HUD).  Using loan insurance programs to insure mortgages for lenders, the Federal Housing Administration (FHA) stimulates these availability of housing for low-and moderate-income families.

Federal National Mortgage Association - A privately owned corporation created by Congress to support the secondary mortgage market.  It purchases and sells residential mortgages insured by the Federal Housing Administration (FHA) or guaranteed by the Veterans administration (VA), as well as conventional home mortgages.  

Federal Reserve Bank System - Central bank of the United States established to regulate the flow of money and the cost of borrowing.

Federal Savings and Loan Insurance Corporation - An instrument of the federal government which insures savings accounts in member savings institutions.  It is similar to the Federal Deposit Insurance Corporation (FDIC), which insures savings deposits in commercial banks an mutual savings banks.

Fee Simple - The greatest possible interest a person can have in real estate, including the right to dispose of the property or pass it on to heirs without limitation.  

Fee Simple Determinable - See Determinable Fee. 

Fee Tail - An estate in which conveyance is limited to the descendants of the grantee.

FHA -  See Federal Housing Administration.

FHA Mortgage -  A mortgage with federally sponsored mortgage guaranty insurance provided through the Federal Housing Administration (FHA).

FHLB -  See Federal Home Loan Bank.

FHLMC -  See Federal Home Loan Mortgage Corporation.

FIAR -  See Fully Indexed Accrual Rate.  

Fictitious Deed of Trust - See Fictitious Mortgage.

Fictitious Mortgage - A mortgage recorded solely to provide terms for other mortgages that will incorporate them by reference.  The purpose is to reduce the number of recorded pages.

Fictitious Name - A name that does not include the surname of every principal in a business.  To use a fictitious name, the fictitious name publication and recording statutes must be complied with.

Fiduciary -  A person or legal entity that administers investments for the benefit of another.  

Filtering Down - Process in which housing passes down to lower economic groups. 

Final Value Estimate - An appraiser's estimate of the defined value of a property, arrived at by reconciling the estimates of value derived from the cost, income capitalization and sales comparison approaches.

Financing Package - The total of all financial interest in a project.  It may include mortgages, partnerships, joint venture capital interests, stock ownership or any financial arrangement used to complete a project.  

Fire Block - A horizontal block between studs to prevent a fire from rising through a wall.

Fire Wall - A wall built of fireproof material to limit or contain a fire.

Firm Commitment -  A lender’s conditions, agreement or promise to make a loan to a specific borrower on a specific property.

First Mortgage -  A loan on real estate that creates a paramount and prior lien against real property.  

First Right of Refusal - A right to meet any bona fide offer to purchase or lease that an owner wishes to accept.  Generally given to tenants. 

Fixed Expenses - Those costs that are more or less permanent and do not vary in relation to the property's income, such as real estate taxes and hazard insurance.

Fixed Interest Rate -  A mortgage feature that structures the loan so that there will be no increases or decreases in the interest rate during the life of the loan.

Fixed Monthly Payment -  A feature in a loan that prevents increases or decreases in the monthly payment amount during the life of the loan.

Fixed Rate Mortgage -  The type of loan where the interest rate will not change for the entire term of the loan.

Fixture - Personal property that becomes real property upon being attached to real estate.  

Flat Lease - A level-payment lease with no escalation clause.

Floor Space - Interior square footage measured from the inside walls.

Floor Time - The time that realty offices require their salespersons to be physically present in the office each week to answer phones and talk with walk-ins while other agents are out.

FmHA - See Farmers Home Administration.

FNMA - See Federal National Mortgage Association.  

Footing - Concrete poured in the ground upon which the foundation rests.  The footing distributes the building load over soil.

Forbearance -  An effort made by the lender to offer the borrower a method of, or alternatives to, making a loan current if it is in default.

Forbearance Agreement - A verbal or written agreement that the lending institution will delay exercising its right to foreclose on a loan as long as the borrower performs certain agreed-upon terms and conditions.

Foreclosure -  An action to eliminate the interest of a borrower in real estate so as to give the lender good title.

Foreclosure by Action and Sale -  See Judicial Foreclosure

Foreclosure by Advertisement -  See Power of Sale.  

For Sale By Owner - A term used to describe a property sold by the owner without the assistance of a real estate agent.

Forward Commitment -  A commitment to purchase loans or mortgage-backed securities which calls for delivery at some future date - typically beyond 90 days.  

Foundation - the masonry substructure upon which the building rests.  The foundation rests on the footing.

Freddie Mac -  See Federal Home Loan Mortgage Corporation. 

Free and Clear - Title to real property that is unencumbered by liens.

Freehold - A higher-interest category of estates such as fee simple and life estates. 

Front-Foot - A linear measurement of land based on the number of feet fronting on a road. 

Frost Line - The depth of frost penetration in the soil.  

FSBO - Pronounced "fizzbo".  See For Sale By Owner.

FSLIC - See Federal Savings and Loan Insurance Corporation.

Fully Indexed Accrual Rate -  The base index value of an adjustable-rate mortgage (ARM) plus the highest gross margin during the life of the loan.

Functional Obsolescence -  Caused by structural components of a property being outmoded or inefficient by current standards.  

Funding - The disbursement of funds to complete a transaction.  In mortgage finance, it occurs when the lender provides money to close a real estate sale.  

Funding Fee - A fee charged by the VA for a VA loan.  The veteran can financing the fee, pay for it at closing or have the seller pay for the fee.  Qualifying disabled veterans are exempt from this fee. 

Future Interest - An estate in real property that provides for the benefits of possession and enjoyment at some future date.