Dictionary

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Face Amount

The amount indicated on the face of a Life policy that will be paid at death or when a Whole Life policy matures at age 100. Also known as the Death Benefit or the policy limit. Not taxable.

Fair Credit Reporting Act

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

Fair Housing Act of 1968

The federal law prevents discrimination in housing based on race, color, religion, or national origin; amended in 1974 to include sex and include handicap and familial status in the protected categories.

Fair Market Value

The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept.

Fair Plan

Fair Access to Insurance Requirements. A program established by law that makes Property insurance available and affordable to insureds who might otherwise be uninsurable because of “environmental hazards.”

Family Income Rider

Added to a Whole Life policy for an additional premium, this rider is similar to the Decreasing Term Rider except that payments to the beneficiary are in the form of monthly income rather than a lump sum. For example, if you added a 10 year $100,000 FIR to your policy and died five years later, your family would receive $10,000 a year for five years PLUS the face amount of your Whole Life policy. Remember, the rider is term insurance and you must die in the term. If you died after 11 years, the rider would not cover, but the Whole Life would, since Whole Life is “permanent” insurance, covering to age 100.

Family Plan Policy

A combination plan covering your entire family, usually with Permanent insurance on the father’s life, with mother and children automatically covered for lesser amounts (usually Term), all included under one premium.

Fannie 97

A financing option for a fixed-rate mortgage that offers home buyers a 3 percent down payment loan with either a 25- or 30-year term. The mortgage features a loan-to-value (LTV) percentage of 97 percent and is designed to expand homeownership opportunities for people with modest incomes. Borrowers must take a pre-purchase homebuyer education session to qualify for a Fannie 97 mortgage.

Fannie Mae

Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation’s largest source of financing for home mortgages. Over the past 30 years, Fannie Mae has provided nearly $2.5 trillion of mortgage financing for over 30 million families.

Fannie Mae’s Community Home Buyer’s Program

An income-based community lending model, under which mortgage insurers and Fannie Mae offer flexible underwriting guidelines to increase a low or moderate-income family’s buying power and to decrease the total amount of cash needed to purchase a home. Borrowers who participate in this model are required to attend pre-purchase home-buyer education sessions.