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Unformatted text preview: ing. As the depression caused massive foreclosures and a huge devaluation of real property, there emerged the first in–depth research into land use, real estate valuation, and the financing of real property in this country. GOVERNMENT PARTICIPATION
The federal government entered into real estate financing for the first time by establishing the: FEDERAL HOUSING ADMINISTRATION (FHA, 1934) – The long–term amortized loan developed by FHA brought about a profound change in home and farm financing. Federal Home Loan Bank Board (FHLBB, 1932) – The credit reserve system of the FHLBB added to the stability of the savings and loan industry. 1-2 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 1. IMPORTANCE OF REAL ESTATE FINANCE
Federal Deposit Insurance Corporation (FDIC, 1934) – The federal insurance of deposits in commercial banks ended the banking crisis of the Great Depression by restoring the public's confidence in banks and bringing to an end the “run on the bank” which could destroy a bank. Banks still sometimes fail, but since the establishment of the HDIC, no depositor has ever lost money in an FDIC–insured account. Very few people today fear the safety of funds in commercial banks. Federal Savings and Loan Insurance Corporation (FSLIC, 1934) – The federal insurance of deposits in savings and loan associations restored public confidence in the S&L industry. Federal National Mortgage Association (FNMA, 1938) – The secondary mortgage money market created by FNMA stimulated the primary mortgage money market by giving lenders their first organized system for selling existing loans and making money available for more loans in more areas. Through “Fannie Mae” the federal government laid the foundation for the modern secondary mortgage money market. Government National Mortgage Association (GNMA) – “Ginnie Mae” assumed some of Fannie Mae's riskier functions in 1968 when Fannie Mae was converted to a stockholder–owned corporation...
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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