Federal Laws and Government Agencies
Things you might have heard but never understood, or things you haven't heard but understand, or things that are completely foreign. Hey, it's all jargon to you!

1. Department of Veterans Affairs (VA)
   • An independent agency of the federal government that guarantees long-term, low-or no-down payment mortgages to eligible veterans.
2. Due-on-Sale Clause
   • A provision in a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home.
3. Equal Credit Opportunity Act (ECOA)
   • Is a federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs.
4. Farmers Home Administration (FmHA)
   • Provides financing to farmers and other qualified borrowers.
5. Federal Home Loan mortgage Corporation (FHLMC)
   • Is a quasi-governmental agency that purchases conventional mortgages from insured depository institutions and HUD-approved mortgage bankers. Also called Freddie Mac.
6. Federal Housing Administration (FHA)
   • A division of the Department of Housing and Urban Development. Its main activity is the insuring of residential mortgage loans made by private lenders. FHA also sets standards for underwriting mortgages.
7. Federal National Mortgage Association (FNMA)
   • A tax-paying corporation created by Congress that purchases and sells conventional residential mortgages, as well as those insured by FHA or guaranteed by VA. This institution, which provides funds for one in seven mortgages, makes mortgage money more available and more affordable.
8. Government National Mortgage Association (GNMA)
   • Also known as Ginnie Mae, provides sources of funds for residential mortgages, insured or guaranteed by FHA or VA.
9. Real Estate Settlement Procedures Act (RESPA)
   • Short for the Real Estate Settlement Procedures Act. RESPA is a federal law, which in part allows consumers to review information on known or estimated settlement costs, once after application and once prior to or at a settlement.
10. Truth-in-Lending Act
    • A federal law requiring disclosure of the Annual Percentage Rate to home buyers shortly after they apply for the loan. Also known as Regulation Z.

7/23 and 5/25 Mortgages
Mortgages with a one time rate adjustment after seven years and five years respectively.

3/1, 5/1, 7/1 and 10/1 ARMs
Adjustable-rate mortgages in which rate is fixed for three-year, five-year, seven-year and 10-year periods, respectively, but may adjust annually after that.