Mortgage Terms

A, B, C, D-E, F-G, H-K, L-M, N-Q, R-S, T-Z

 

Fannie Mae
nickname for the Federal National Mortgage Association (FNMA). FNMA is the largest of the secondary market investors that purchase loans from mortgage companies. The company is a private corporation and is listed on the New York Stock Exchange.

Federal Housing Administration (FHA)
an agency of the U.S. Department of Housing and Urban Development (HUD) that insures first mortgages and can enable lenders to lend a very high percentage of the purchase price. The FHA does not actually lend money.

Federal Reserve Bank
the regulatory agency that sets monetary policy for the country and provides liquidity for supervised financial institutions.

Fiduciary
an entity, such as a real estate broker or mortgage broker, designated to act in the best interest of a client.

First Mortgage
a mortgage that is the primary lien against a property. Not necessarily the first mortgage obtained chronologically.

Foreclosure
a legal process in which a homeowner in default on a mortgage is deprived of interest in the property, so that it may be sold to satisfy the debt.

Freddie Mac
nickname for the Federal Home Loan Mortgage Corporation (FHLMC). Another major secondary market purchaser of loans. FHLMC is a government-sponsored agency that is also publicly traded on the NYSE.

Ginnie Mae
nickname for the Government National Mortgage Association (GNMA). An agency that acts as a secondary market conduit for FHA and VA loans, guaranteeing payment to investors.

Good Faith Estimate
a written disclosure of costs provided by a lender to a prospective borrower.