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GLOSSARY
Federal Open Market Committee
The Federal Open Market Committee, or FOMC, is the 12-person group that sets monetary policies for the Federal Reserve System. The FOMC assesses the state of the economy to determine the appropriate actions necessary. These actions might include increasing or decreasing key interest rates, or conducting open market transactions of government securities to increase or decrease the money supply.
Federal poverty level - FPL
Federal poverty level, or FPL, is an estimation of the minimum income needed to support a family's basic needs such as food, clothing, shelter, and transportation. The value is used to determine a household's eligibility for certain types of public assistance. The Department of Health and Human Services determines the FPL and the numbers, which are based on family size, are issued annually.
Federal Reserve Board
This board runs the Federal Reserve System which controls the monetary policies of the US (interest rates and credit) and monitors the economic health of the country. The Federal Reserve Board was created to provide the country with a stable, yet flexible financial system. It consists of seven governors, appointed by the president for a 14 year term.
Federal Reserve System
The Federal Reserve System, also known as the Fed, 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 savings and loan association
A federal savings and loan association is a registered financial institution that offers savings deposit accounts and mortgage loans to its customers.
Federal tax brackets
Federal tax brackets are defined levels of income that correspond to the percentage of federal income tax imposed on that income level. For example, in the 2007 tax year, the lowest tax bracket is defined as income between $0 and $7,825, which is assessed 10 percent income tax; the highest bracket is income in excess of $349,700, which is assessed 35 percent income tax.
Federal Trade Commission
Federal Trade Commission, or FTC, is a U.S. federal agency that's tasked with protecting consumers from unfair and anti-competitive business practices. The FTC reviews mergers, investigates reports of fraud and false advertising, and manages the Do Not Call Registry.
Federal Truth in Lending Form
This form is a document that the lender is required to provide before closing. This is the main disclosure document which outlines the key terms of the mortgage, all of the borrowing costs and the fees that are involved. This document was designed to protect consumers and provide a concise manner of calculating and presenting the terms of mortgages so that consumers can compare interest rates to find the best deal.
Federal Unemployment Tax Act
Federal Unemployment Tax Act, or FUTA, is the legislation that requires employers to contribute to unemployment compensation programs. Amounts paid are based on each employee's wages. The tax itself is usually called the FUTA tax.
Fee simple
The highest possible interest or complete ownership interest that a person can have in real estate.
Fee simple defeasible
A situation where someone has outright ownership of real estate, free of any liens or other claims against title, but whose use of the property has restrictions.
Fee-based investment
Fee-based investment refers to a type of investment account. The fees owed to the investment advisor are calculated as a percentage of the customer's assets. This type of account provides greater incentive to the investment advisor to grow his client's asset value. The alternative to a fee-based investment is the commission-based investment, where the advisor earns a set fee on each trade.
FHA mortgage
A mortgage insured by the Federal Housing Administration and commonly referred to as a government loan.
FICA
The Federal Insurance Contributions Act consists of payments to the Social Security retirement supplement system and the Medicare hospital insurance program. A tax for each component is levied on employers, employees and certain self-employed individuals. These taxes are taken out of your paycheck separately from your income taxes.
FICO
The most commonly used credit score. The name comes from the Fair Isaac Corporation, which developed the scoring model. They are used to predict the likelihood that a person will pay his or her debts. The scores use only information from credit reports.