Unformatted text preview: ool for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 3: INSTITUTIONAL LENDERS Answer Key: 1–B, 2–D, 3–D, 4–A, 5–D, 6–A, 7–D, 8–D, 9–C, 10–C Dynasty School (www.dynastySchool.com) 3-13 4: NONINSTITUTIONAL LENDERS CHAPTER 4: NONINSTITUTIONAL LENDERS PREVIEW
In previous chapter, Institutional lenders were described as real estate lenders whose activities are highly regulated by various state and federal agencies. In this chapter you will study noninstitutional lenders – real estate lenders whose activities are not as strictly regulated as Institutional lenders. Noninstitutional lenders, also called nonfiduciary financing include private parties, mortgage companies, syndicates, real estate investment trusts, pension and trust funds, and credit unions. SEMIFIDUCIARY AND NONFIDUCIAY LENDERS
The second general source of funds for real estate finance is a group known as financial semi fiduciaries. This heterogeneous group is composed of real estate mortgage brokers and bankers, real estate mortgage and investment trusts, real estate bond dealers and endowment fund managers. Some semifiduciaries arrange mortgages between the major fiduciary lenders and borrowers. Others make direct loans using their own funds. Unlike banks, savings institutions, life insurance companies, pension funds and credit unions, which are directly responsible to their depositors and premium payers, the semifiduciaries are removed from a first-person relationship. Although the quality of a fiduciary relationship is somewhat implicit in their actions, the semifiduciaries' responsibilities are directed either internally, to their owner-partners, or externally, to the primary fiduciaries that they represent, but never directly to any depositors or premium payers. Although a semifiduciary is expected to invest entrusted funds with sound
Dynasty School (www.dynastySchool.com) 4-1 REAL ESTATE FINANCE
judgment, no guarantee is given t...
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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