APPLY
NOW / LOGIN
GLOSSARY
Fed
Fed is short for the Federal Reserve, which is the U.S. central banking system. The Fed is responsible for setting and implementing monetary policy, and regulating its member banks. One of the Fed's most visible functions is the maintenance of the federal funds rate, which drives interest rates on many short-term loan programs.
Federal Advisory Council
The Federal Advisory Council is a group consisting of one elected member from each of the 12 districts within the Federal Reserve banking system. The Federal Advisory Council meets with the Federal Reserve Board of Governors periodically to discuss the banking environment and business issues.
Federal covered advisor
A federal covered advisor is an investment advisor who manages more than $25 million on behalf of others. Federal covered advisors must register with the state and with the SEC, pursuant to Section 203 of the Federal Investment Advisers Act of 1940.
Federal discount rate
The federal discount rate is the interest rate charged to member banks when they borrow money from the Federal Reserve Bank. The federal discount rate is managed by the Fed, but it doesn't have a direct affect on the cost of short-term loan rates.
Federal Family Education Loan (FFEL)
Federal Family Education Loan (FFEL) is a group of student financing programs that include Stafford loans, unsubsidized Stafford loans, PLUS loans (made to parents), and student consolidation loans. FFEL loans are federally guaranteed, insured loans that are made by private banks and credit unions.
Federal Family Education Loans
These student loans are similar to the Direct Loan program. This group of loans includes Stafford loans and PLUS loans. They are funded primarily by banks and credit unions.
Federal funds rate
The federal funds rate is the interest rate applied to loans made between member banks within the U.S. Federal Reserve system. Usually, these interbank arrangements are overnight loans, made to meet the Fed's cash reserve requirements. Because the federal funds rate affects pricing on short-term loans made to consumers and businesses, the Fed changes it periodically to stimulate or reign in the economy.
Federal Home Loan Bank System - FHLB
The Federal Home Loan Bank System, or FHLB, is a federally chartered organization that was originally established to supply reserve funds to U.S. savings and loans institutions. Today, the FHLB is also involved in housing and community development programs.
Federal Home Loan Mortgage Corporation
Federal Home Loan Mortgage Corporation, or FHLMC, was the original name of Freddie Mac. Freddie Mac is a federally chartered corporation that supports the mortgage industry by repackaging qualified mortgage loans. The mortgages are purchased from lenders, securitized, and then sold to the investment community. These securities are not federally guaranteed.
Federal Housing Administration
The Federal Housing Administration, or FHA, is an agency of the Department of Housing and Urban Development (HUD). The FHA insures qualified mortgages so that borrowers of limited means can have access to affordable mortgage loans.
Federal housing administration (FHA)
This is an agency of the U. S. Department of Housing and Urban Development (HUD). It guarantees private home mortgages or FHA loans and provides funds to promote housing construction and underwriting. It does not itself lend money or involve itself in construction.\n\nSee further FHA mortgage
Federal income tax
Federal income tax is the federal government's primary source of revenue. The tax is imposed by the Internal Revenue Service (IRS), and is paid by individuals, businesses, and other legal entities, based on their annual earnings.
Federal Insurance Contributions Act
Federal Insurance Contributions Act, or FICA, is legislation that mandates the withholding of a percentage of one's income to support the federal Social Security and Medicare programs. Amounts withheld from employee wages must be matched by employers; those who are self-employed must pay both the employee and employer portions.
Federal methodology - FM
Federal methodology, or FM, is a legally-defined formula that the federal government uses to calculate a student's estimated financial contribution (EFC). The EFC is an approximation of the portion of college education expenses that will not be covered by financial aid.
Federal National Mortgage Association
Federal National Mortgage Association, or FNMA, is another name for Fannie Mae. Fannie Mae is a shareholder-owned, federally chartered corporation that purchases mortgages, repackages them into mortgage-backed securities, and then sells those securities to investors. Fannie Mae (not the U.S. government) guarantees principal and interest payments on the securities, no matter what happens with the underlying mortgages. This activity provides funds for the mortgage industry so that more people in the U.S. can buy homes.