REP_OH.15

REP_OH.15 - CM 426 - REP 15 REAL ESTATE FINANCING: PRACTICE...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CM 426 -- REP 15 REAL ESTATE FINANCING: PRACTICE I. FEDERAL RESERVE SYSTEM (FED) A. PURPOSE 1. MAINTAIN SOUND CREDIT CONDITIONS 2. CONTROL INFLATION 3. FAVORABLE ECONOMIC CLIMATE B. 12 FEDERAL RESERVE DISTRICTS 1. EACH SERVED BY A FEDERAL BANK 2. ALL NATIONALLY CHARTERED BANKS MUST JOIN THE FED C. CONTROL 1. DISCOUNT RATES -- RATES CHARGED TO MEMBER BANKS FOR FUNDS 2. RESERVE REQUIREMENTS SET BY FED 3. INCREASING DISCOUNT RATES OR RESERVE REQUIREMENTS INCREASES INTEREST RATES TO CUSTOMERS, REDUCES AMOUNT OF CAPITAL IN ECONOMY II. PRIMARY MORTGAGE MARKET A. PLAYERS 1. FIDUCIARY LENDERS -- MUST PROTECT DEPOSITORS’ FUNDS a. S & L’S (1) STATE OR FEDERALLY CHARTERED (2) TRADITIONALLY MOST FLEXIBLE (3) HEAVY RESIDENTIAL INVOLVEMENT (4) 1980'S FIASCOS -- COSTING YOU AND ME! (5) FDIC REGULATED -- RTC (RESOLUTION TRUST CORP) b. COMMERCIAL BANKS
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
(1) TRADITIONAL CONSTRUCTION LOAN LENDERS (2) NOW INTO PLC’S, ETC. 2. INSURANCE COMPANIES -- USUALLY LONG-TERM COMMERCIAL, INDUSTRIAL INVESTMENTS 3. CREDIT UNIONS 4. PENSION FUNDS 5. MORTGAGE BANKING COMPANIES a. NOT MORTGAGE BROKERS b. ORIGINATE LOANS WITH INSURANCE CO. FUNDS, PENSION FUNDS, ETC. c. ORIGINATE LOANS WITH INTENT TO SELL AND SERVICE MORTGAGES 6. MORTGAGE BROKERS a. NOT LENDERS b. INTERMEDIARIES -- BRING BORROWERS AND LENDERS TOGETHER c. PROCESS PAPERWORK AND SUBMIT TO LENDERS FOR FINAL APPROVAL B. SOURCES OF INCOME 1. FINANCE CHARGES (POINTS, FEES) 2. INTEREST INCOME OVER LIFE OF LOAN 3. IF LOANS ARE SOLD, COLLECTION SERVICES AND RECORD KEEPING SERVICES III. SECONDARY MORTGAGE MARKET -- PACKAGED LOANS ARE BOUGHT ONLY AFTER THEY HAVE BEEN FUNDED
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 8

REP_OH.15 - CM 426 - REP 15 REAL ESTATE FINANCING: PRACTICE...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online