Glossary

FAIR CREDIT REPORTING ACT: This is a federal law regulating the way credit agencies disclose consumer credit reports and the remedies available to consumers for disputing and correcting mistakes on their credit history.

FAIR MARKET VALUE: This is when a price is reached at which two unrelated parties, under no duress, are willing to transact business.

FANNIE MAE: Created by Congress in 1938, Fannie Mae is the nation's largest source of financing for home mortgages. A private, shareholder-owned company that works to make sure mortgage money is available for people to purchase homes.

FASCIA: These are the boards that enclose the eaves.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): The U.S. Government agency created in 1933 which maintains the stability of and public confidence in the nation's financial system by insuring deposits and promoting safe and sound banking practices.

FEDERAL HOUSING ADMINISTRATION (FHA): It currently provides federally-subsidized mortgage insurance for private lenders. This is a sub-agency of the U.S. Department of Housing and Urban Development created in the 1930's to facilitate the purchase of homes by low-income, first-time home buyers.

FEE APPRAISER: This is a certified, professional appraiser who estimates the fair market value of property and receives a set fee in exchange.

FEE SIMPLE: This is a complete, unencumbered ownership right in a piece of property.

FEE SIMPLE ESTATE: It is the most complete form of title, having an unconditional and unlimited interest of perpetual duration with a form or ownership, or holding title to real estate.

FHA MORTGAGE: When a mortgage is insured by the Federal Housing Administration (FHA).

FIRST MORTGAGE: This is the primary loan or mortgage secured by a piece of property.

FIXED-RATE MORTGAGE (FRM): This is a mortgage which has a fixed rate of interest over the life of the loan, usually a 15 year or 30 year mortgage.

FIXTURE: This is any piece of personal property which becomes permanently affixed to a piece of real property.

FLASHING: This is the metal used around the base of roof mounted equipment, or at the junction of angles used to prevent leaking.

FLOOD INSURANCE: This is a supplemental insurance which covers a home owner for any loss due to water damage from a flood. This is usually required by lenders for homes located in FEMA-designated flood zones.

FLOOR PLAN: The drawing of a building which shows the basic outline of the structure, as well as detailed information about the positioning of rooms, hallways, doors, stairs and other features. Oftentimes, this includes detailed information about other fixtures and amenities.

FOOTING: This is a partially buried support for a vertical structural member such as a post.

FORECLOSURE: The processes whereby a lender can reclaim the property used by a borrower in order to secure the mortgage and sell the property to meet the obligations of the loan.

FORFEITURE: This is when there is a loss of property or money due to the failure to meet the obligations of a mortgage or loan secured by that property.

FOUNDATION: The solid part of the structural element upon which a structure is built.

FRONTAGE: When part of a property runs along a point of access, such as a street or water front.

FUNCTIONAL OBSOLESCENCE: Functional obsolescence can also occur when the surrounding area changes, rendering the property unusable for its originally intended purpose. This decreases in the value of property due to a feature or lack thereof which renders the property undesirable.