Fair Credit Reporting Act - A federal law giving one the right to see his/her credit report so that errors may be corrected. A lender refusing credit based on a credit report must inform the buyer which company issued the report. The buyer may see the report without charge if refused credit.
FHA Loan (Federal Housing Administration) - A federal agency, created by the National Housing Act of 1934, for the purpose of expanding and strengthening home ownership by making private mortgage financing possible on a long-term, low down payment basis. The vehicle is a mortgage insurance program, with premiums paid by the homeowner, to protect lenders against loss on these higher-risk loans. Since 1965, FHA has been part of the newly created Department of Housing and Urban Development (HUD).
Federal National Mortgage Association (FNMA) - Popularly known as Fannie Mae. A privately owned corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgages by FHA or guaranteed by the VA, as well as conventional home mortgages.
Fee Simple - An estate in which the owner has unrestricted power to dispose of the property as he wishes, including leaving by will of inheritance. It is greatest interest a person can have in real estate.
Fiduciary - A person in position of great trust and confidence, as the relationship between principal and agent.
Finance Charge - The total cost a borrower must pay, directly or indirectly, to obtain credit according to Regulation Z.
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