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KES gov in RE
KES KES gov in RE
| Term | Definition |
|---|---|
| Blanket loan | Loan covering more than one property with providing for release of individual property from obligation |
| Buydown | Lowers interest rate on a mortgage (may be temporary). A lump sum is paid to the lender at closing in cash to buy down the interest rate |
| Certificate of reasonable value | Form indicating reasonable value for property financed by VA loans |
| Community Reventment Act 1977 (CRA) | Refers to responsibility of financial institutions to help meet needs for low income and moderate income housing |
| Construction loan | Finances construction of improvements on Real Estate. Lender commits full amount , but disburses funds during construction. Called draws |
| Conventional loan | A mortgage that has no direct federal involvement. Are considered the most secure |
| Equal Credit Opportunity Act (ECOA) | Prevents discrimination based on race, age, ... |
| Fannie Mae | Government created in 38. Became private in 68. It buys blocks or pools of mortgages that then may be used as collateral for mortgage backed securities sold on the global market. |
| Farmer MAC | Enacted by congress publicly traded cooperation for secondary mortgage market for agriculture |
| Federal Deposit Insurance Coirporation (FDIC) | Insures deposits upto 250,000 depositor, per account |
| Federal reserve system (Fed) | Is to maintain sound credit conditions, help counteract inflation and deflationary trends, and creat a favorable ecomonic environment. Divides country into 12 districts. |
| FHA insured loan | Is a term not an actual loan. It refers to a loan that is insured by the agency |
| Freddie Mac | Federal home loan mortgage corporation |
| Gennie Mae | Government national mortgage association. A division of HUD |
| Government Sponsored Enterprise (GSE's) | Created by fed following depression and wwII to help increase loan opportunities (Fannie Mae, Freddie Mac, Farmer Mac, Ginnie Mae) |
| home equity loan | Takes advantage of equity built up in home. This is a secondary lien to the origional mortgage |
| Mortgage Insurance Premium | (MIP) FHA insurance that is a percentage of loan amount charged as a premium |
| Home equity Loan | Loan where property is used as collateral for a loan that can be drawn against |
| Mortgage insurance premium (MIP) | A charge for all FHA Loans |
| Office of comptroller of the currency (OCC) | Sets standards and obligations for Fiduciary lenders |
| Open-end loan | Mortgage loan that is expanded in increments up to a maximum dollar amount, with full loan secured by the original mortgage |
| Package loan | Real estate loan used to purchase both real and personal property. |
| Primary mortgage market | Lenders that origionate mortgage loans. These lenders make money available directly to borrower |
| Private mortgage insurance | May allow purchaser with less than 20% down payment to borrow at a higher interest rate by insuring against property sold at a loss to lender on default |
| Real Estate Settlement Procedures Act (RESPA) | Federal law that requires certain disclosures to consumers about mortgage settlement. Also prevents kickbacks and certain referral fees |
| Regulation Z | Truth in lending act. Requires credit institutions to inform borrower of the true costs of credit. |
| Sale-and-leaseback | Used for comercial Real Estate: owner sells property to an investor who then leases it back to the origional owner. |
| Secondary mortgage market | A market where loans are bought and sold after they have been funded. |
| Triggering terms | credit terms that may not be advertized by creditor. |
| Truth in Lending Act (TILA) | Regulates lending practices of mortgage lenders. |
| VA-Guaranteed loan | Mortgage loan approved property made to approved veterans by authorized lenders guaranteed by department of veterans affairs |
| Wraparound loan | Method of refinancing where new mortgage is placed in secondary position includes both unpaid principle and sums advanced. |
| Three basic components of RE financing market | Government infulence, primary mortgage market, secondary mortgage market |
| Discount rate | The rate controlled by fed |
| Reserve requirements | Min funds a bank must maintain |
| Income on a loan is realized frm 2 sources | Finance charges at closing, recurring income (interest during term) |
| Servicing a loan involves | Collecting payments, accounting, book keeping, prepairing insurance and tax records, processing payments of tax and insurance, follow up on loan payments |
| Fiduciary lenders | Savings associations (thrifts), comercial banks |
| Current deposit insurance coverage | 250,000 |
| Freddie Mac seconday market function | Mostly conventional loans |
| Fannie Mae seconday market function | Conventuals, FHA-Insured, VA-guaranteed loans |
| Ginnie Mae seconday market function | Special assistance loans |
| Purchase money mortgage | Buyer assumes current mortgage, executes a note to seller and finances the rest |
| Fair credit reporting act | Requires that reasons for rejection be provided within 30 days |
| CLO fee | Up To .5 point on the loan amount can be done by broker or agent |
| FSA | Farm Service Agency. Federal agency of the department of agricultural. Helps families purchase or operate family farms. WILL MAKE LOANS DIRECTLY. ALSO provides loans to purchase or improve single family homes in areas with less than 10,000 people. |
Created by:
KimSchroeder
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