Federal National Mortgage Association; commonly known as "Fannie Mae", the FNMA is the largest buyer of existing mortgages. The Federal National Mortgage Association was originally organized by the federal government in 1938 to purchase FHA-insured mortgages. The association was reorganized in 1968 as a quasi-private corporation whose entire ownership is private. Fannie Mae raises capital by issuing corporate stock which is actively traded on the New York Stock Exchange and by selling mortgages out of its portfolio to various investors.
Federal Home Board
The board which oversees the Federal Home Loan Bank systems.
Federal Home Loan Bank
Provides liquidity to supervised financial service companies, such as savings and loans and credit unions. The bank system has several districts.
Federal Home Loan Board
The board which charters and forbids discrimination in the sale.
Federal Home Loan Mortgage Corporation (Freddie Mac/FHLMC)
A government sponsored agency that is also a publicly traded company on the New York Stock Exchange that purchases mortgage loans from mortgage bankers and financial depository institutions. FHLMC is a major secondary market investor.
Federal Housing Administration
A federal agency which insures first mortgages, enabling lenders to loan a very high percentage of the sale price.
Federal National Mortgage Association
See Fannie Mae.
Federal Reserve Bank
The regulatory agency for certain commercial banks and bank holding companies. Sets monetary policy for the country and provides liquidity for supervised financial institutions.
Federal Tax Lien
A lien attached to property for nonpayment of a federal tax.
Federal Tax Return
The U.S. government’s method to identify individual and company’s annual tax responsibility. The tax returns identify the income and taxes.
Fee Simple
Highest possible degree of ownership of land. The estate allows owners to have unrestricted powers to dispose of property, and which can be left by will or inherited.
FICO Score (Loan)
A credit bureau risk score produced from models developed by Fair, Isaac and Company, Inc.; commonly known as FICO scores. Fair, Isaac credit bureau scores are used by lenders and others to assess the credit risk of prospective borrowers or existing customers, in order to help make credit and marketing decisions.
A person in a position of trust or responsibility with specific duties to act in the best interest of a client. Real estate brokers and mortgage brokers are fiduciaries.
( see Agency ).
Financial Depositor Institutions
Banks, savings and loans or credit unions.
First Mortgage
Mortgage holding priority over the claims of subsequent lenders against the same property.
Fixed Rate
A mortgage with an interest rate that remains constant for the life of the loan.
Personal property affixed to structures or land, usually in such manner that they cannot be independently moved without damage to themselves or the property housing, supporting, or pertinent to them. Varies under state laws.
Flex Space
An Industrial property subtype in which the property is occupied by one or more tenants and the property is utilized for industrial/office purposes. A Flex space property is typically a one or two story building with little or no common areas, high ceilings, load-bearing floors and loading dock facilities; usually configured to allow a small amount of office space in combination with light assembly or warehouse/distribution uses.
Floor-to-Area Ratio
The relationship between the total amount of floor space in a multi-story building and the base of that building. FARs are dictated by zoning laws and vary from one neighborhood to another, in effect stipulating the maximum number of stories a building may have.
FNMA/DUS Financing
A loan program through a lender designated by Fannie Mae who originates, underwrites, closes, and services Fannie Mae approved multifamily mortgage loans.
The process by which a mortgagee (lender) takes back a property on which the mortgagor (borrower) has defaulted. A servicer may take over a property from a borrower on behalf of a lender. A property usually goes into the process of foreclosure if payments are more than 90 days past due.
Franchise Affiliated (Hotel)
A franchise agreement allows the hotel to operate under a particular brand name and assures the hotel will be competently managed. Most hotels rely on their franchise agreement to give the property a brand name, to identify and define the service the hotel sells, and to produce a large percentage of its reservations. Franchises, or flags, include Holiday Inn, Marriott, Hilton, Comfort Inn, etc.
Franchise Fees
An expense line item representing the undistributed expenses (fees) related to the franchise including royalties, national advertising, and administration of frequent guest stay or similar programs. These fees can include part of an initial purchase requirement plus an ongoing percentage of gross sales of the business.
Freddie Mac
Federal Home Loan Mortgage Corporation.
Free Standing Retail
A Retail property subtype in which the property is occupied by one tenant and the property is utilized for retail purposes; fast-food franchises and high-scale retail stores are often free-standing buildings; sometimes called "big-box"; typical gross building area ranges from 2,000 to 100,000 square feet.
Freight Elevator
An elevator used to carry freight, typically separate from a passenger elevator. Elevators should be adequate in terms of speed, load capacity, safety, number, and they should be able to meet peak period demands. Appraisers judge the adequacy of elevators using established standards (e.g. one elevator per 25,000-40,000 square feet of GBA). Elevator service impacts the overall functionality of the property.
Full Disclosure
Revealing all known facts which may affect the decision of a buyer or tenant.
Full Recourse
Identifies whether the lender accepts full-recourse loan requests from the Lender.
Functional Obsolescence
Impairment of functional capacity or efficiency. For example, homes without indoor plumbing (while they may contain working outdoor plumbing facilities) are considered functionally obsolete.
Furnished Units
Identifies whether any or all units are furnished.
Future value measures the nominal future sum of money that a given sum of money is "worth" at a specified time in the future.