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Unformatted text preview: Financial institutions – California contains the largest number of banks and thrift institutions. Obviously, thrift institutions want to be where the greatest demand for real estate loans can be found. Californians have a greater choice of lenders than do residents of other states. Loan correspondents – California has attracted many experienced and diversified mortgage loan correspondents who represent out–of–state life insurance companies and other Institutional and non–Institutional lenders. This brings additional mortgage money to California. WIDE USE OF TITLE INSURANCE AND ESCROWS, LESS COMMON IN OTHER STATES
Title companies – Title insurance originated in California and it continues to increase in volume. Escrow companies, too, are peculiar to this state, though the use of both title and escrow firms is spreading to other states. This easy, low–cost closing process attracts lenders and borrowers.
2-14 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 2. THE MONEY MARKET
USE OF TRUST DEEDS INSTEAD OF MORTGAGES TO SECURE REAL ESTATE LOANS
Loan document – In California the deed of trust is used almost exclusively, rather than the mortgage instrument, as the legal basis for securing real estate loans. This gives greater protection to lenders, because it allows a quick foreclosure process. Active secondary market – This is where existing real estate loans are sold to in–state and out–of–state purchasers. These secondary market sales bring fresh capital to the California real estate market. MONEY IN THE ECONOMY
The following excerpts are from the booklet “Money in the Economy”, published by the Research and Public Information, Department of the Federal Reserve, Bank of San Francisco. It spells out in more detail the monetary principles summarized in this and the preceding chapter. Most of us take it for granted that money and credit conditions have important effects o...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10