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32 Cards in this Set
- Front
- Back
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What is the Savings and Loan Association(S&Ls)? |
The oldest and largest source of funds for financing residential property |
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When were saving and Loans (S&Ls) at their Peak, what years? |
Between 1945 and the late 1970s |
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What is money market funds? |
They are private non insured investment accounts |
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What is a profolio loan? |
A loan held by A lender rather than sold into the secondary Market |
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What is the federally related transaction? |
Any transaction in which the federal government is involved ex. real estate transaction or loans |
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What does the Financial institutions reform, recovery, and Enforcement Act (FIRREA) do? |
Governs all federally related transactions. Protects the Federal Deposit Insurance funds. |
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Under (FIRREA) who regulates the S&L's? |
The office of thrift supervision(OTS) |
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Why was the resolution trust Corporation(RTC) formed? |
It was formed to liquidate the assets of fraudulent and failed S&L's |
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What ended up replacing S&L's? |
The savings Association Insurance Fund (SAIF) |
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What was the purpose of FIRREA's? |
To restore the Public's confidence and Savings and Loan industry |
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What are the purpose of commercial Banks? |
They do commercial lending activities. Supply capital for business ventures. Do short-term construction activities. |
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What does servicing a mortgage loan mean? |
Means that the bank collects the mortgage payments for the loan even though it has been sold into the secondary Market. |
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All commercial banks are part of what system? |
The Federal Reserve System |
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What are three facts regarding credit unions? |
They were set up in 1970 as a membership Association. Still relatively new. And do small business Landings. |
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What are Pension funds? |
A fund set up by a corporation, labor union, government entity or other organization to pay pension benefits to retired workers. |
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What companies are able to safely invest large sums of money into long-term real estate loans? |
Insurance companies, because they're held for relatively long term and not subject to early or sudden withdrawal. |
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What is a participation loan? |
Where the lender assumes a percentage of ownership in addition to the loan proceeds |
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When investing money in the secondary Market what companies pay no interest? |
Insurance companies |
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What are mortgage brokers? |
Are Financial Negotiators between the lenders and the Borrowers. Finding you the best loan. |
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Mortgage Bankers/Mortgage companies do what? |
Originate service, and sell loans investors |
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What is a seasoned loan? |
A sufficient time to establish that the borrower is making payments in a timely manner often 6 to 12 months |
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What is the Real Estate Investment Trust(REIT)? |
An unincorporated association a real estate investor is managed by a trustee. This allows tax benefits for people to invest in real estate. Example there only taxed once |
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What are the several requirements of REIT? |
1. Cannot hold property primarily for sale to customers. 2. Must have 100 beneficial owners 3. No five persons can hold over 50% of the beneficial interest 4. Must issue shares or certificates of Interest 5. Each share must have proportionate vote in trust policy decisions 6. 95% of its gross income must be from 7. 75% of its income must be from Real Estate Investments |
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What is a second mortgage? |
A source of funds When A lender will not loan the full amount of the purchase price of residence and could also be a source of funds for home repairs |
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How has the internet helped? |
Lower consumer cost and increase productivity. |
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What percentage of net income must come from Real Estate Investments? |
75% |
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The collection of principal and interest payments by one lender on behalf of another is called? |
Loan Servicing |
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Any transaction that involves the federal government is called what? |
Federally related transaction |
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The deposit Insurance Fund for both Banks and saving banks is managed by who? |
FDIC |
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Requiring a percentage of a developer's profit as well as principal and interest is known as? |
Loan participation |
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What Market is not insured? |
Money markets |
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What loans are not sold in the secondary Market? |
Portfolio loans |
