Fannie Mae : The Federal National Mortgage Association, a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages. It adds liquidity to the mortgage market by investing in home loans throughout the country.

First Mortgage : A mortgage that has priority as a lien over all other mortgages.

Freddie Mac : The Federal Home Loan Mortageg Corporation. A federal agency within the Deprtment of Housing and Urban Development (HUD), which insures residential mortgage loans made by private lenders and sets standards for underwriting mortgage loans.

HUD: The Department of Housing and Urban Development was established by Congress in 1965 and is responsible for the implementation and administration of government housing and urban development programs. These programs include community planning and development, housing production and mortgage insurance (FHA), secondary mortgage market activities (GNMA) and equal opportunity in housing.

HUS-1 Settlement Statement: A document that provides an itemized listing of the funds that are payable at closing. Items that appear on the statement include real estate comissions, loan fees, points, and initial escrow amounts. Each item on the statement is represented by a seperate number within a standardized numbering system. The totals at the bottom of the HUD-1 Statement define the seller's net proceeds and the buyer's net payment at closing. The blank form for the statement is published by the Department of Housing and Urban Development (HUD). The HUD-1 statement is also know as the "closing statement" or "settlement sheet".

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