Enter Zip, City, or County... i.e. orange,NY or 90019
Search Method:    regular time edocs

Resources > Glossary > F

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

0-9  A  B  C  D  E  [F]  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z  
Common Terms 1   Common Terms 2

Fair Credit Reporting Act

A consumer protection law that regulates the disclosure of consumer credit reports by consumer and credit reporting agencies and establishes procedures for correcting mistakes on one's credit record.

Fair Market Value

The highest price that a buyer would pay, and the lowest a seller would accept. . A value similar to what comparable properties in comparable areas would have.

Family Rider

The Family Rider transfers the owner's right to collect rents to the lender. One common clause in the family rider is that the borrower would not make any changes to the use of the property or to its zoning...

Fannie Mae

The Federal National Mortgage Association which is an organization created by Congress that purchases and sells conventional residential mortgages as well as those insured by FHA or guaranteed by the VA.

FDIC Insured

Federal deposit insurance protects the first $250,000 of deposits that are payable in the United States in any bank account. The FDIC also supervises some financial institutions for safety and soundness.

Federal Housing Administration

Also known as the FHA.   A division of the Department of Housing and Urban Development. Its main activity is the insuring of residential mortgage loan made by private lenders. FHA also sets standards for underwriting mortgages.

Federal National Mortgage Association

Also known as "Fannie Mae". A tax-paying corporation created by Congress that purchases and sells conventional residential mortgages as well as those insured by FHA or guaranteed by the VA. This institution...


A crime more serious than a misdemeanor and punishable by a more stringent sentence. Most states will not allow an individual with a Felony, or crime involving dishonesty or moral turpitude from becoming a...

FHA Loan

A loan insured by the Federal Housing Administration available to all qualified home purchasers. While there are limits to the size of FHA loans, they are generous enough to handle moderate-priced homes in...

FHA Mortgage

A mortgage that is insured by the Federal Housing Administration (FHA). Also known as a government mortgage. A loan insured by the Federal Housing Administration available to all qualified home purchasers...

Finder's Fee

In a mortgage context, a finder's fee is a fee or commission paid to a mortgage broker for finding a mortgage loan for a prospective borrower. A finders fee would generally be classified as compensation given to...

Firm Commitment

A commitment, generally in writing where a lender agrees to lend money to a borrower with specified conditions. This promise is often made using a commitment letter.

First Mortgage

A mortgage that is the primary lien against a property. Please read about subordination agreements to learn which mortgage is primary or secondary against a property. Please do not confuse the concept of...

Fixed Rate Mortgage

A mortgage where the monthly payments remain constant regardless of how interest rates fluctuate. Borrowers who want a lower interest rate often opt for an adjustable rate mortgage which has a fluctuating rate.

Float Down Option

One variation of a float down option is an option to choose a lower rate within 30 days before the closing of your loan and "float down" to a lower rate than the previously locked-in rate. This allows you to pick...

Flood Insurance

Insurance that compensates for physical property damage resulting from flooding. It is a requirement for properties located in federally designated flood areas. Even a few inches of water can bring thousands of...

Flood Zone Notification

This document called a flood zone notification would only be in a loan package if the lender determined that the property involved is located within a flood plain. If the property was in a flood plain, then the flood zone...


The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds...


A false signature, written document or other creation made to imitate the true signature, document, or creation, with the intent to defraud. Notaries would be wise to employ the use of thumbprinters when...

Form 4506 Request for Copy or Transfer of Tax Form

This document authorizes the lender to obtain a copy of the borrower's tax return if a loan is chosen to be audited. It also ensures that the borrowers didn't commit fraud in their application regarding their...

Form 8821 Tax Information Authorization

This document authorizes the lender to contact the Internal Revenue Service for many years of tax reports on the behalf of the borrower. Lenders very tax reports to verify the financial soundness of the applicant.