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54 Cards in this Set
- Front
- Back
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as transportation costs increase
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the value of the land decreases realtive to similar parcels with lower transportation costs
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the tendency for similar land uses to agglomerate is
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economic zoning
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all of the following are examples of problems that may arise out of a purely free market solution to zoning except
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zoning restirctions
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an important limitation to the use of private restrictions for controlling land uses is often
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that they may be too costly to enforce
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the authority to control and regulate land uses is
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generally vested in local jurisdictions
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a general guide to a communities furture development which include projections of its needs for infrstructure public services land and finanical resources is
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the comphrhensice plan
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in a planned unit development
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building densities may exceed the maximum allowed in some area in order to provide larger areas of open space in the PUD
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land use standards that are based on the extent to which operations impose negative externalities on the surronding parcels such as the impact of traffic is
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performance zoning standards
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amoung other things zoning is intendeted to
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minimize the risks inhernt in a properties ownership and enhance the degree of certainty regarding future development patterns and standards
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inverse condemnation
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a legal action for just compensation taken by a landowner against government for a claimed partial taking perhaps due to a change in zoning
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sequence of adjustments applied to the sales comparison approach
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1. transaction price
2. conditions of sale 3. financing terms 4.=normal sale price 5. market conditions 6. =market adjusted normal sale price 7. location 8.physical characteristics 9. legal characteristics 10. use 11. nonrealty items 12. final adjusted sale price |
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in the traditional sales comparison approach the appraiser reconciles the ___ to determine the ___.
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final adjusted sale prices
indicated value |
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changes in market conditoins result from
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increase/decrease in demand
increases/decreases in supply inflation |
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a technique which identifies two or more properteries that are similar in all respects except for one in order to estimate the value of that componment is
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paired data anaylsis
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the cost of a building to construct the budiling day replicating it in exact detail is
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reproduction cost
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the estimated constant in a linear multiple regression model represents
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the contribution of all the factos that are not explained by the equatopn and to which the coefficents are added
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any loss of a buildings value due to excess traffic noise is
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external obsolecencce
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a projects NOI is caculated by
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deducting all expenses and allowances from the properties effective gross income
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which is not an operating expense
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capital improvement expenditures
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in cases which appreciatoion is expected in a propertys NOI and market value the overall yield on a property is
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greater than the overall capilitzation rate
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dividing equity income (BTVF) by by dividend rate yeilds
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value of the equity
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technically a mortgage is best described as
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a contractual pledge for real estate to serve as collateral for a loan
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in the US
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the governemtn encourages the development of mortgage securities
wall street investment banks participate in the commercial mortgage market equity financing sources include life insurance companies |
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the secondary mortgage market serves to
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a source for the sale of mortgages to investors
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firms which assist in pension funds, insurance companies, or other lenders in distributing mortgage obligations to mortgage investors are known as
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coduits
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mortgage documents containing notes with specific language about the borrower's promise to repay loans establish
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recourse financing
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the public equity quadrant of real estate markets includes the following major participants
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equity REITs
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money that is invested in shares issued and traded in securities markets of pools of mortgage loans such as mortgage-banked securrities are
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public debt
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a loan in which a builder is required to obtain a forward commitment to secure construction financing is
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a covered loan
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a clause which requires all remaining payments are due on the loan be paid in the event of default is
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acceleration clasue
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the right given to borrowers to make up over due payments when in defulat but prior to a sale of the property is
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equity right of redemption
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a major purchaser of residential mortgage loans in the secondary market is
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the federal national mortgage association (FNMA)
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when a mortgage is used as collateral for the insurance of mortgage backed security the underlying mortgage is said to be
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securitized
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a conforming conventional mortgage loan is
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one that meets standards required for purchase in the secondary market but is not insured or guaranteed by a government agency
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the primary reason a borrow should chose a 15 year mortgage over a 30 year mortgage
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if they can afford the larger monthly payments and belueve the mortgage interest rate is greater than the rate of return they can earn on other investments they will be better off financially
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mortgage insureance is typically required on new FHA loans when the loan amount is greater than
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its required on all FHA loans
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3 c's
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credit
capacity collateral |
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savings and loan institutions saving banks credit unions and commercial banks which bring together depositions and mortgage borrowers are
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financial intermediaries
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financial insitiutions which serve a group of people who have a common bond such as employees of a corporotion government unit labor union or trade association are
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credit unions
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a institution which fund long term mortgage loans then hold the whole loans as an investment
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portfolio lenders
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a mortgage pipeline is a term used to describe
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a mortgage bankers approved but currently unfunded loan commitments
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mortgage bankers are often compensated for
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servicing loans
servicing borrowers thru loan processing fees orginating loans thru the mortgage orignating fees |
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a mortgage broker
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serves as an intermediated between the borrower and the lender
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a loan type in which guarentes loan losses up to 100% of a properties value
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veteran's adminstration mortgage loan
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the primary guarantor of pass through mortgage bacjed securities issued by approved issuers
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ginnie mac
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to obtain a conventional loan the month PITI plus any monthly fiancial obligations such as auto or credit loans must typicall be less than __% if the borrowers monthly gross income
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36
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the feradal act signed 1975 which discourages lenders from redlining certain neighborhoods is
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the home loan mortgage discloser act (HMDA)
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the second largest single source of long term commercial real estate debt is
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life insurance companies
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which of the following has gained importance as a source of commercial real estate debt in the 1990s
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pension fund
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when a note is used in the financing of property and borrowers have person liability the arrangement is known as
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recourse financing
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most commercial loans do not allow borrowers to freely prepay at par because they generally contain
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a prepayment penalty
a lock out provision |
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the index on a floating rate mortgage is
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rate banks charge their best customers, the prime rate
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a method of selling property where the seller allows the buyer to pay the purchase price over a number of years thereby deffering taxable income is
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installment sale agreement
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the payment of a specified percentage of the properties gross or net income to a lender is termed
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an income kicker
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