1 / 14

Chapter 15 Real Estate Financing: Practice

This chapter focuses on the institutions and logistics of real estate lending. Banks are among the lending institutions involved in the real estate financing process. Chapter 15 Real Estate Financing: Practice. Real Estate Financing Market Federal Reserve System Discount Rates

oistin
Download Presentation

Chapter 15 Real Estate Financing: Practice

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. This chapter focuses on the institutions and logistics of real estate lending. Banks are among the lending institutions involved in the real estate financing process. Chapter 15Real Estate Financing: Practice

  2. Real Estate Financing Market • Federal Reserve System • Discount Rates • FDIC Reserve Requirement Modern Real Estate Practice17th Edition

  3. Primary Mortgage Market • Thrifts, savings associations, commercial banks • Insurance companies • Credit unions • Pension funds • Endowment funds • Investment group financing • Mortgage banking companies • Mortgage brokers

  4. Financing Techniques • Straight Loans • Interest-Only Mortgages • Balloon Payment Loans • Amortized Loans • Adjustable-Rate Mortgages (ARMs) • Growing-Equity Mortgages (GEMs) • Reverse-Annuity Mortgages (RAMs) Modern Real Estate Practice17th Edition

  5. Other Financing Techniques • Purchase-Money Mortgages • Package Loans • Blanket Loans • Wraparound Loans • Open-End Loans • Construction Loans • Sale-and-Leaseback • Buydowns • Home Equity Loans Modern Real Estate Practice17th Edition

  6. Loan Programs • Conventional Loans • Loan-to-Value Ratio (LTV) • Private Mortgage Insurance (PMI) • FHA-Insured Loans • VA-Guaranteed Loans • Agricultural Loan Programs Modern Real Estate Practice17th Edition

  7. Real Estate Financing Market • Secondary Mortgage Market • Fannie Mae • Ginnie Mae • Freddie Mac • Wall Street • Insurance companies • Financial Institutions Modern Real Estate Practice17th Edition

  8. What Can I Buy? • www.ginniemae.gov

  9. Modern Real Estate Practice17th Edition

  10. Modern Real Estate Practice17th Edition

  11. Financing Legislation • Truth-in-Lending Act and Regulation Z • Total finance charge and the interest rate • Annual percentage rate • Total amount of payments • Amount financed • Number, amount, time installments are due • Prepayment penalties • Late payment charges • Required insurance • Filing fees • Description of the collateral Modern Real Estate Practice17th Edition

  12. Equal Credit Opportunity Act (ECOA) • Community Reinvestment Act (CRA)

  13. Computerized Loan Origination • Electronic network for handling loan applications • Scoring and Automated Underwriting Modern Real Estate Practice17th Edition

More Related