What is "wood fungus"?

[Kyle Shepherd]

Rookie here. A deal I was looking at was scooped by someone else. The deal fell through. The listing agent told me it was because they found some termites and "wood fungus".

I've never heard of this wood fungus before and neither has a friend of mine who's an insurance adjuster and had his own properties. A google search wasn't overly fruitful - maybe it's known by another name?

Anybody know what this "wood fungus" is? Would the same group that handles the termite care also deal with the wood fungus?