Term
Terms
Alienation Clause
Hint: DUE NOW!! |
|
Definition
Requires immedite repayment of the loan if ownership
transfers;aslso called due on sale clause |
|
|
Term
Automatic underwriting systems
|
|
Definition
| Computerized system for loan approval communication between a loan originator and the investor |
|
|
Term
|
Definition
| Results when lenders are required to pay high rates of interest for deposits while receiving long term income from low interest rate mortgage loans |
|
|
Term
| Computerized Loan Origination |
|
Definition
| Originating loans through the use of a networked system(computer) |
|
|
Term
|
Definition
Nickname for
FEDERAL NATIONAL MORGAGE ASSOCIATION |
|
|
Term
|
Definition
Nickname for
FEDERAL HOME LOAN MORTGAGE CORPORATION |
|
|
Term
|
Definition
One who brings together:
BORROWERS AND LENDERS |
|
|
Term
|
Definition
A firm that makes mortgage loans and sells to investors
(Usually services the loan too) |
|
|
Term
| Participation Certificates |
|
Definition
A certificate representing an undivided interest in a
FREDDIE MAC POOL |
|
|
Term
|
Definition
| The market in which lenders originate loans and make funds available to borrowers |
|
|
Term
| Secondary Mortgage Market |
|
Definition
| A market in which mortgage loan can be sold to investors |
|
|
Term
|
Definition
| Charging an interest rate that is above the legal rate |
|
|
Term
Primary Market
can be divided into 2 markets
Hint (Feds) |
|
Definition
- Those regulated by Federal Goverment
- Those NOT regulalated by Federal Goverment
|
|
|
Term
| Who are regulated lenders in Primary Market? |
|
Definition
- Commercial Banks(Compass Chase etc)
- Savings and Loans associations
- Savings Banks
|
|
|
Term
| Who are the Non-regulated lenders in Primary Market? |
|
Definition
- Investment Bankers
- Life Insurance companies
- Finance Companies
|
|
|
Term
| Regulated lenders in Primary Market subject to: |
|
Definition
Examinations by federal regulators
Pay risk based premiums $ on their deposit insurance
Restricted Loan to Value |
|
|
Term
Saving and Loan Associations
Describe |
|
Definition
In past became a primary source of residential real estate loans
Feds required them to have 80% of assets in R.E Loans
Subject to tax laws to defer payment of income tax onprofits if profits held in surplus accounts |
|
|
Term
Savings and Loans:
In addition to passbook accounts they offered
Certificates of ? |
|
Definition
Certificate of Deposits (CD's)
(Rates higher than passbook rates to compete with
US Treasury bills/Notes and Bonds) |
|
|
Term
Savings and Loans Association
Disintermediation occurs when....Depositors do what? |
|
Definition
| Take their money out of savings and invest directly in goverment securites, bonds etc... |
|
|
Term
| When money flowed from S&L Associations one of the primary reasons were... |
|
Definition
Deregulation of the lending Industry
Which cause President Bush to sign into law FIRREA |
|
|
Term
Financial Institutions Reform, Recovery and Enforcement Act of 89
Created 7 new regulatory authorities
(Also Initiated a system of federally designated appraisers) |
|
Definition
In response to deregulation of lending industry
bad investments, undertrained executives, loos goverment controls on S & L risks/investments |
|
|
Term
Commerical Banks
Problems with S & L actually help commericial banks
During Deregulation Acts of 1980/1982
Banks made more home loans and offered short term loans and adjustable rates loan because these loans: |
|
Definition
Help prevent disintermediation
|
|
|
Term
Commercial Bank
1999 Congress passed
Financial Services Modernization Bill
Lifting banking restriction
Allowed banks to become?
|
|
Definition
One stop financial conglomerates
offering a reange of financial products. |
|
|
Term
Life Insurance
(long time investors as developers, owners and long term lenders)
Not Federally regulated but _____ regulated... |
|
Definition
They are state regulated
(Channel money to goverment/corp bonds and real estate)
They are High Rollers dealing with shopping centers, offices and apartments purchased from 2ndary money market.
They Issue Participation loan so they get a piece of the action. |
|
|
Term
Municiple Bonds provide a source of mortgage money
the advantage to borrowers is ____ break.
|
|
Definition
Tax break
Municiple bonds is tax free from federal income tax
saving can be passed on to home buyer |
|
|
Term
| What are some other lenders out there? |
|
Definition
pension funds and trust funds
Finance Company
Credit Union
Commercial Finance Co
Individuals |
|
|
Term
Texas Loan programs
Name them |
|
Definition
Texas Vet Land Fund
Vet Housing Assistance program
Veteran Home Improvement Program
Texas Dept Housing and Community Affairs
Boot Strap
Home Investment Partnership Program(hoome)
Housing Finance Corp
Fannie Mae Realtor Program
Texas State Affordable Housing CO |
|
|
