Federal home loan mortgage corporation - A affiliate of the Federal Home Loan Bank which creates a secondary money market in conventional residential loans and in FHA and VA loans by purchasing mortgage loans from members of the Federal Reserve System and the Federal Home Loan Bank Systems.

Fee simple - The absolute total interest in real property. Compare, LIFE ESTATE, REVERSION.

Fiduciary relationship - A relationship of trust and confidence between principal and agent; lawyer and client; doctor and patient; etc.

Fixture - An item of personal property attached to real property so that it can not be removed without damage to the real property. A FIXTURE becomes part of the real property.

Foreclosure - The process by which a lender sells property securing a loan in order to repay the loan. Under a DEED OF TRUST, foreclosure is by public auction after appropriate advertisement. A MORTGAGE may require the lender to obtain Court approval prior to sale.

Fully indexed note rate - As related to adjustable rate mortgages, the index value at the time of application plus the gross margin stated in the note.