real estate finance - full book (500 pgs)

To the saver or borrower however there is little

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Unformatted text preview: s a mutual institution, depositors and borrowers are given share certificates or receipts in return for deposits of money. This is why a deposit in a mutual thrift is often referred to as a share liability rather than a savings deposit. A capital stock institution, on the other hand, issues shares of stock to its investors, representing fractional shares of ownership of the institution. S&LS VS. COMMERCIAL BANKS Current legislation (1) allows savings banks to handle checking accounts and make a variety of personal consumer loans; (2) permits both commercial banks and savings banks to pay interest on checking accounts; and (3) eliminates the interest–rate differential between regular passbook accounts in thrifts and in banks. FEDERAL CHARTERED OR STATE CHARTERED Savings banks are members of the Federal Home Loan Bank system, are regulated by the FHLB Board, and must have their deposits insured by the FSLIC. State charters may be covered by FSLIC insurance (about three–quarters of them are, and all in California are insured); others may be insured by state funds. Savings banks may be grouped together with controlling stock interest held by a holding company; singly or in groups, they may form service corporations which are allowed to carry out both investment and traditional service functions. To the saver or borrower, however, there is little difference between state and federal institutions, so similar are the laws and regulations under which they operate. They have substantially “parallel authority,” which means that home buyers can shop for loans almost anywhere. CHARACTERISTICS OF SAVINGS BANKS (THRIFTS) RECENT DEVELOPMENTS OF SAVING BANKS FROM S&LS Deregulation of Saving Banks – Restrictions on the types of savings accounts could offer have also been eased, and the 1982 financial institution reform legislation vastly expanded their available services and 3-4 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 3: INSTITUTIONAL LENDERS savings offerings, enabling them to co...
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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.

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