Fannie Mae
See Federal National Mortgage Association (FNMA).

Federal Deposit Insurance Corporation (FDIC)
The Federal Deposit Insurance Corporation (FDIC) provides insurance of accounts for institutions whose deposits were formerly covered by the Federal Savings & Loan Insurance Corporation (FSLIC). See FIRREA

Federal Home Loan Bank Board (FHLBB)
A regulatory and supervisory agency for federally chartered savings institutions which oversees the operations of the FSLIC and FHLMC. This agency was abolished by the Financial Institutions Reform, Recovery and Enforcement Act of 1989. See FIRREA.

Federal Home Loan Mortgage Corporation, Freddie Mac (FHLMC)
A private corporation authorized by Congress, which became an independent, stockholder-owned government corporation with the passage of FIRREA. FHLMC promotes the flow of funds into the housing markets by purchasing conventional mortgages in the secondary market and selling securities backed by those mortgages in the capital market.

Federal Housing Administration (FHA)
A division of the Department of Housing and Urban Development. The FHA's main activity is the insuring of residential mortgage loans made by private lenders. It sets standards for construction and underwriting. FHA neither lends money, nor plans, nor constructs housing.

Federal Housing Finance Board (FHFB)
The Federal Housing Finance Board (FHFB) oversees the credit functions of the twelve regional Federal Home Loan Banks. See FIRREA.

Federal Savings & Home Loan Insurance Corporation (FSLIC)
See FIRREA.

Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA)
An act signed into law in August, 1989, by President George H. W. Bush that restructured the thrift regulatory and insurance system. The Federal Home Loan Bank Board (FHLBB) was abolished and its various functions reassigned to existing and new government agencies. The Federal Housing Finance Board (FHFB) was formed to replace Federal Home Loan Bank system. It oversees the credit functions of the twelve regional Federal Home Loan Banks. The Office of Thrift Supervision (OTC) was formed to charter federal thrifts, serve as the primary federal examiner and regulator of federal and state-charted savings associations (formally insured by the FSLIC), and administer laws governing savings and loan holding companies. The Federal Deposit Insurance Corporation (FDIC) provides insurance of accounts for institutions whose deposits were formerly covered by the Federal Savings & Loan Insurance corporation (FSLIC). The Resolution Trust Corporation (RTC) was formed to resolve thrift failures over the next three years and dispose of their assets and liabilities.

First Mortgage
The mortgage that has the first claim in the event of default.

Fixed Rate Mortgage (FRM)
A mortgage in which the interest rate does not change during the entire term of the loan.

Foreclosure
The process by which a mortgaged property may be sold when a mortgage is in default.

Freddie Mac
See Federal Home Loan Mortgage Corporation (FHLMC).

Full Recasting
Setting the P & I payments to the level that will fully amortize the loan's outstanding balance over the remaining term using the fully indexed rate at the recasting point.

Fully Indexed Accrual Rate
The interest (accrual) rate resulting from the index at closing (or another point in the loan) plus the lender's full spread, rounded as prescribed in the loan documents (often to the nearest 1/8th or 1%).

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