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Loanfactz DefinitionsGlossary of Legal Terms, Loan Terms and Home Construction, Repair and Maintenance Definitions. Some words have more than one meaning. Only those meanings relating to this site will be used.
FAFSA (Free Application for Federal Student Aid) The FAFSA is the form you must complete to apply for federal student loans or other student aid from the United States Department of Education. Many states and schools also use the FAFSA data to award aid from their programs. The information you report is used to calculate your Expected Family Contribution (EFC), which measures your family's financial strength on the basis of your family's income and assets. To visit the FAFSA online, go to www.fafsa.ed.gov/ Fair and Accurate Credit Transaction Act (FACTA) of 2003 Enhances consumers ability to combat identity theft, increases the accuracy of consumer reports, allows consumers to exercise greater control over the type and amount of marketing solicitations they receive, restricts the use and disclosure of sensitive medical information, and establishes uniform national standards in the regulation of consumer reporting. To amend the Fair Credit Reporting Act. More about the Fair and Accurate Credit Transaction Act Fair Credit and Charge Card Disclosure Act of 1988 Requires that applications for credit cards that are sent through the mail, solicited by telephone, or made available to the public, for example, at counters in retail stores or through catalogs, contain information about key terms of the account. Amended the Truth in Lending Act. Fair Credit Billing Act of 1974 Specifies how creditors must respond to billing error complaints from consumers, imposes requirements to ensure that creditors handle accounts fairly and promptly, and allows you to withhold payments on defective goods. Applies primarily to credit and charge card accounts (for example, store card and bank card accounts). Amended the Truth in Lending Act. Fair Credit Reporting Act Establishes procedures for correcting mistakes on a person's credit record and requires that a consumer's record only be provided for legitimate business needs. It also requires that the record be kept confidential. A credit record may be retained seven years for judgments, liens, suits, and other adverse information except for bankruptcies, which may be retained ten years. If a consumer has been denied credit, a cost free credit report may be requested within 30 days of denial. Fair Debt Collection Practices Act of 1977 To amend the Consumer Credit Protection Act, to prohibit abusive practices by debt collectors. Fair Housing Act of 1968 Prohibits discrimination on the basis of race, color, sex, religion, marital status, handicap, familial status or national origin in the financing, sale or rental of housing. More about the Fair Housing Act Fair Market Value The price at which property would be transferred between a willing buyer and willing seller, each of whom has a reasonable knowledge of all pertinent facts and is not under any compulsion to buy or sell. FDIC FDIC stands for the Federal Deposit Insurance Corporation. FDIC is an independent agency of the United States government. The FDIC protects you against the loss of your deposits if an FDIC insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government. More about FDIC Federal Family Education Loans (FFEL) The Federal Stafford, Federal PLUS, Federal SLS, and Federal Consolidation Loan programs. These programs offer loans that are funded by private lenders, guaranteed by guarantors, and reinsured by the federal government Federal Loan Loans that are guaranteed by the United States government. Federal Perkins Student Loan Perkins Loans are low interest (5%) federal student loans for both undergraduate and graduate students. Perkins Loans are made through a school's financial aid office. Your school is your lender, and the loan is made with government funds. Federal Trade Commission Act (FTCA) Requires federal financial regulatory agencies to maintain a consumer affairs division to assist in resolving consumer complaints against institutions they supervise. This assistance is given to help get necessary information to consumers about problems they are having in order to address complaints concerning acts or practices which may be unfair or deceptive. More about Federal Trade Commission Act (FTCA). Federal Trade Commission (FTC) The Federal Trade Commission (FTC) works for the consumer (you) to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. More about Federal Trade Commission (FTC) FHA Federal Housing Administration (FHA). A loan with certain restrictions that is guaranteed by the Federal Housing Administration. An agency within the Department of Housing and Urban Development that sets underwriting standards and insures residential mortgage loans made by private lenders. FHA mortgages may be easier to qualify for since they require a low down payment, usually about 3 percent of the loan amount, and may offer low interest rates. One of FHA's objectives is to help make affordable mortgages available to homeowners with low or moderate income. FHA loans may be high loan to value, and they are limited by loan amount. FHA mortgage insurance requires a fee of 1.5 percent of the loan amount to be paid at closing, as well as an annual fee of 0.5 percent of the loan amount added to each monthly payment. Finance Charge Interest and any other charges, including points, that make up the fees incurred when borrowing money. Financed Closing Costs Costs for closing of title that are added to the loan amount rather than being paid up front. This practice adds to the amount borrowed, increasing the monthly payment. Financial Statement Report that shows income and expenses for an accounting period and normally consists of a balance sheet, income statement and statement of cash flows. Financing The loaning and borrowing of money to buy something. First Mortgage A mortgage that is the primary lien against a property. Fixed Interest Rate An interest rate which does not change during the entire term of the loan, which makes your monthly payments (interest and principal) stay the same. Generally have repayment terms of 15, 20, or 30 years. Fixed Rate Mortgage A home mortgage loan in which the interest rate does not change during the entire term of the loan. Flood Disaster Protection Act Requires flood insurance on property in a flood hazard area that comes under the National Flood Insurance Program. The Flood Disaster Protection Act is an act to expand the national flood insurance program by substantially increasing limits of coverage and total amount of insurance authorized to be outstanding and by requiring known flood prone communities to participate in the program, and for other purposes. Forbearance A temporary postponement of principal and interest payments during which the borrower may only pay the interest on the loan. If the borrower chooses not to pay the interest, it will be capitalized at the end of the period. Forced Placed Insurance If the lender discovers that you have no car insurance on your vehicle or the required property insurance on your home, they will take out a special policy to cover the loan they approved for you. This kind of insurance is very expensive and it provides less coverage. The lender will add the premium costs of the new insurance policy to your loan, and you must pay it, so make sure you get your own vehicle insurance coverage or homeowners insurance coverage you need. Review all correspondence you receive from your lender. Your lender may request that you provide a copy of your insurance policy. Respond promptly to requests regarding insurance, and keep copies of all documents you send to your lender. If you believe there's a paperwork error and that your coverage is adequate, provide a copy of your insurance policy to your lender. Once the lender corrects the error, removes the force placed coverage, and refunds the cost of the force placed policy, make sure that any late fees or interest you were charged as a result of the coverage also are removed. Foreclosure A legal action that terminates (ends) all ownership rights in a home when the homebuyer fails to make the mortgage payments or is otherwise in default under the terms of the mortgage. Fraud Fraud is when a person or business intentionally deceives another person with promises of goods, services, or financial benefits that do not exist, were never intended to be provided, or were misrepresented. Typically, victims give money but never receive what they paid for. Fraud is a crime. Freddie Mac Freddie Mac is a stockholder owned corporation chartered by Congress in 1970 to keep money flowing to mortgage lenders, such as commercial banks, mortgage bankers, savings institutions and credit unions, in support of homeownership and rental housing. By doing so, Freddie Mac helps lower housing costs and provide better access to home financing. |
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