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Fair Credit
Reporting Act (FCRA)
Congress passed this act to give consumers certain rights when dealing
with consumer reporting agencies, or CRAs. CRAs are required to
provide accurate credit histories to authorized businesses for use
in evaluating applications for insurance, employment, credit or
loans.
Fair market
value
The likely selling price of a home between a willing buyer and a
willing seller on the open market. In a mortgage or a home equity
loan, the fair market value is usually determined by an appraisal.
Fannie Mae
Federal National Mortgage Association, a government-sponsored enterprise
which buys and securitizes mortgages for re-sale in the secondary
market.
FHA
An acronym for Federal Housing Administration, which is an agency
of the Department of Housing and Urban Development. The FHA provides
mortgage insurance for certain residential mortgages. It sets standards
for underwriting these mortgages and for construction of homes secured
by these mortgages.
FICO®
An acronym for Fair Isaac Company, Inc., which develops the mathematical
formulas used to produce credit scores for assessing credit risk.
Finance charge
The finance charge is the cost of consumer credit expressed as a
dollar amount. It includes the amount of interest you will pay during
the terms of the loan, origination points and certain other items.
Some closing costs are not treated as finance charges.
First mortgage
A mortgage that is the senior lien against a property.
Fixed-rate option or fixed-rate loan option
An option available on all Bank of America home equity lines of
credit allowing borrowers to fix the payments and interest rate
on all or a portion of their outstanding principal balance for a
specific term. Customers may be charged a fee for this privilege.
Fixed-rate
mortgage
A home loan with a predetermined fixed interest rate for the entire
term of your loan. This means that the interest rate will never
change for as long as you have the loan.
Flood certification
A determination by a reputable source about whether property is
located within a special flood hazard zone.
Flood insurance
Insurance that protects against loss due to floods. When available,
this type of insurance is required by law when a property is located
within a special flood hazard zone.
Foreclosure
A legal procedure in which property securing a defaulted loan is
sold by the lender in order to repay a borrower's loan. The amount
paid by a buyer at the foreclosure may not be enough to fully repay
the loan and the borrower may continue to owe the lender the difference.
Freddie Mac
A government-sponsored enterprise which buys and securitizes mortgages
for re-sale in the secondary market.
Funding date
The date on which the proceeds from a loan are available to, or
disbursed for the benefit of, the borrowers.
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