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12 Cards in this Set
- Front
- Back
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Commercial Banks
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operate under a license or charter from the state or federal government. As far as real estate loans are concerned, there is little difference between a state and a national bank
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Life Insurance
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important source for real estate financing, particularly for large commercial and industrial properties such as shopping centers, office buildings, and ware- houses. Life insurance companies also provide a significant amount of money for new housing subdivisions. In general, life insurance companies have broad lending powers
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Credit Union
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mutual, voluntary-membership, cooperative organization of people who agree to save their money together to provide money for loans to each other.
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Mortgage Brokers
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do not lend their own money. Rather, they find a lender and a borrower and get a fee for bringing them together
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Mortgage Companies
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a major type of non-institutional real estate lender. Represents life insurance companies, commercial banks, savings banks, or other lenders. In this case, it would be called a mortgage or loan correspondent. Regulated.
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Institutional Lenders
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financial depository that gathers deposits from the general public and then invests these funds. California has three major types of institutional lenders: commercial banks, savings banks, and life insurance companies
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Mortgage Bankers
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lend their own money and then either resell the loan to another lender or keep the loan for an investment
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Non-institutional Lenders
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o not accept deposits from the general public and are not as strictly regulated as institutional lenders. Major non-institutional lenders include mortgage companies, private parties, real estate investment trusts, credit unions, and pension funds
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Private Lenders
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individuals who invest their savings in real estate loans. Private individuals can invest directly by granting loans to borrowers, or they can invest indirectly by turning to mortgage brokers who find borrowers for the private lender
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Private Mortgage Insurance (PMI)
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insurance that is used to guarantee lenders the payment of the upper portion of a conventional loan if a borrower defaults and a deficiency occurs at the foreclosure sale
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Real Estate Investment Trust (REIT)
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created in 1960 with the goal of encouraging small investors to pool their resources with others in order to raise venture capital for real estate transactions
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Savings Bank
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a financial institution that accepts savings from the public and invests these savings mainly in real estate trust deeds and mortgages. The majority of savings bank loans are in residential properties, mostly single-family dwellings. A savings bank is also classified as either a state-chartered or a federally chartered institution. As far as real estate lending is concerned, there is little difference
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