Glossary 

Executor: A person named in a will and

premiums, or other charges when they

are due. Sometimes referred to as an

approved by a probate court to adminis-

"impound" or "reserve" account.

ter the deposition of an estate in accor-

dance with the instructions of the will.

Escrow Analysis: The accounting that

a mortgage servicer performs to deter-

F

mine the appropriate balances for the

escrow account, compute the borrower's

monthly escrow payments, and deter-

Fair Credit Reporting Act (FCRA): A

mine whether any shortages, surpluses

consumer protection law that imposes

or deficiencies exist in the account.

obligations on (1) credit bureaus (and

similar agencies) that maintain consum-

Eviction: The legal act of removing

er credit histories, (2) lenders and other

someone from real property.

businesses that buy reports from credit

bureaus, and (3) parties who furnish

Exclusive Right-to-Sell Listing: The

consumer information to credit bureaus.

traditional kind of listing agreement un-

Among other provisions, the FCRA limits

der which the property owner appoints

the sale of credit reports by credit bu-

a real estate broker (known as the list-

reaus by requiring the purchaser to have

ing broker) as exclusive agent to sell the

a legitimate business need for the data,

property on the owner's stated terms,

allows consumers to learn the informa-

and agrees to pay the listing broker a

tion on them in credit bureau files (in-

commission when the property is sold,

cluding one annual free credit report),

regardless of whether the buyer is found

and specifies procedure for challenging

by the broker, the owner or another

errors in that data.

broker. This is the kind of listing agree-

ment that is commonly used by a list-

Fair Market Value: The price at which

ing broker to provide the traditional full

property would be transferred between

range of real estate brokerage services.

a willing buyer and willing seller, each

If a second real estate broker (known as

of whom has a reasonable knowledge of

a selling broker) finds the buyer for the

all pertinent facts and is not under any

property, then some commission will be

compulsion to buy or sell.

paid to the selling broker.

Fannie Mae: A New York stock ex-

Exclusive Agency Listing: A listing

change company. It is a public company

agreement under which a real estate

that operates under a federal charter

broker (known as the listing broker) acts

and is the nation's largest source of

as an exclusive agent to sell the prop-

financing for home mortgages. Fannie

erty for the property owner, but may be

Mae does not lend money directly to

paid a reduced or no commission when

consumers, but instead works to en-

the property is sold if, for example, the

sure that mortgage funds are available

property owner rather than the listing

and affordable, by purchasing mortgage

broker finds the buyer. This kind of list-

loans from institutions that lend directly

ing agreement can be used to provide

to consumers.

the owner a limited range of real estate

brokerage services rather than the tra-

Fannie Mae-Seller/Servicer: A lender

ditional full range. As with other kinds

that Fannie Mae has approved to sell

of listing agreements, if a second real

loans to it and to service loans on Fan-

estate broker (known as a selling broker)

nie Mae's behalf.

finds the buyer for the property, then

some commission will be paid to the

Fannie Mae/Freddie Mac Loan Limit:

selling broker.

The current 2006 Fannie Mae/Freddie