California Real Estate Finance

by Lush, Minnie; Sirota, David

• ISBN13: 9780793136995
• ISBN10: 0793136997
• Edition: 5th
• Format: Paperback
• Copyright: 2003-03-01
• Publisher: Kaplan

Summary

California's unique financing system makes it vital for real estate professionals to understand the many options available to homebuyers. Combining state specific information with sound finance principals, this easy to read text explores the impact of financial markets on real estate transactions and discusses the growing role of technology in financing. Chapters include: * Introduction * Lesson Assignments * Chapter One: Nature and Cycle of California Real Estate Finance. * Chapter Two: Money and the Monetary System * Chapter Three: Fiduciary Sources For Real Estate Finance. * Chapter Four: Semifiduciary and Nonfiduciary Sources for Real Estate Finance. * Chapter Five: Conventional, Insured and Guaranteed Loans. * Chapter Six: Federal and State Financial Regulations and Lending Programs. * Chapter Seven: Junior Real Estate Finance * Chapter Eight: Contemporary Real Estate Finance * Chapter Nine: Instruments of Real Estate Finance * Chapter Ten: Real Estate Loan Underwriting * Chapter Eleven: Processing Real Estate Loans * Chapter Twelve: The Secondary Mortgage and Trust Deed Markets. * Chapter Thirteen: Defaults and Foreclosures * Chapter Fourteen: Investment Financing Strategies * Chapter Fifteen: Mathematics of Real Estate Finance There are also exams and answer keys (PIN Access Only) Plus a chapter quiz at the end of each chapter. (500 pages, 2003 copyright)

Table of Contents

Preface	vii
What is finance and money?
Nature and Cycle of California Real Estate Finance	1	(26)
Key Terms	2	(1)
History of Finance Law	3	(1)
Nature of Real Estate Finance	4	(9)
Mortgage Lending Activities	13	(5)
Real Estate Cycles	18	(4)
Changes in Real Estate Finance	22	(1)
Summary	23	(2)
Review Questions	25	(1)
Exercises	26	(1)
Money and the Monetary System	27	(28)
Key Terms	28	(1)
What is Money?	29	(4)
The Federal Reserve System (FED)	33	(8)
The United States Treasury	41	(6)
The Federal Home Loan Bank System (FHLB)	47	(2)
California Financial Agencies	49	(2)
Summary	51	(2)
Review Questions	53	(1)
Exercises	54	(1)
Where do we get the money?
Fiduciary Sources for Real Estate Finance	55	(22)
Key Terms	56	(1)
Understanding the Market	56	(4)
Commercial Banks	60	(6)
Savings and Loan Associations/Savings Banks	66	(3)
Life Insurance Companies	69	(1)
Pension and Retirement Programs	70	(1)
Credit Unions	71	(2)
Summary	73	(2)
Review Questions	75	(1)
Exercises	76	(1)
Semifiduciary and Nonfiduciary Sources for Real Estate Finance	77	(33)
Key Terms	79	(2)
Mortgage Brokers and Bankers	81	(8)
Real Estate Trusts	89	(3)
California Syndication (Limited Partnerships)	92	(1)
Real Estate Bonds	93	(6)
Endowment Funds	99	(1)
Private Loan Companies	100	(1)
California Real Property Loan Law	101	(2)
Individuals	103	(2)
Summary	105	(3)
Review Questions	108	(1)
Exercises	109	(1)
What kinds of loans are available?
Conventional, Insured, and Guaranteed Loans	110	(38)
Key Terms	112	(1)
Conventional Loans	113	(8)
The Federal Housing Administration (FHA)	121	(9)
The United States Department of Veterans Affairs (DVA) Real Estate Loan Guarantee Program	130	(9)
California Veterans Home and Farm Purchase Program (Cal-Vet)	139	(4)
Summary	143	(3)
Review Questions	146	(1)
Exercises	147	(1)
Financial Agencies and Lending Programs	148	(30)
Key Terms	150	(1)
Nature of Agricultural Lending	151	(2)
The Farm Credit System	153	(3)
The California Housing Finance Agency (CHFA)	156	(2)
Housing and Urban Development (HUD)	158	(2)
Federal Legislation	160	(11)
State Financing Agencies	171	(2)
Summary	173	(2)
Review Questions	175	(2)
Exercises	177	(1)
Junior Loans in Real Estate Finance	178	(13)
Key Terms	179	(1)
Anatomy of a Second Mortgage/Deed of Trust	180	(4)
Home Equity Loans	184	(1)
Secondary Market for Junior Financing Instruments	185	(2)
Summary	187	(1)
Review Questions	188	(1)
Exercises	189	(2)
Loan Terms and Note Payments	191	(47)
Key Terms	193	(1)
Variations in Payments and Interest Rates	194	(9)
Innovative Payment Plans	203	(7)
Variations in Formats	210	(21)
Summary	231	(4)
Review Questions	235	(2)
Exercises	237	(1)
How do I get a loan?
Instruments of Real Estate Finance	238	(38)
Key Terms	240	(2)
Interests Secured by a Real Estate Loan	242	(3)
Note and Deed of Trust (Trust Deed)	245	(10)
Note and Mortgage	255	(6)
Real Property Sales Contract (Land Contract)	261	(2)
Special Provisions in Real Estate Finance Instruments	263	(7)
Summary	270	(3)
Review Questions	273	(2)
Exercises	275	(1)
Real Estate Loan Underwriting	276	(31)
Key Terms	277	(1)
Qualifying the Borrower	277	(15)
Qualifying the Collateral	292	(10)
Summary	302	(2)
Review Questions	304	(2)
Exercises	306	(1)
Processing Real Estate Loans	307	(20)
Key Terms	308	(1)
Qualifying the Title	308	(4)
Closing the Loan Transaction	312	(7)
Summary	319	(6)
Review Questions	325	(1)
Exercises	326	(1)
What happens after the loan is made?
The Secondary Mortgage and Trust Deed Markets	327	(24)
Key Terms	328	(3)
Fannie Mae (Formerly the Federal National Mortgage Association [FNMA])	331	(7)
Freddie Mac (Formerly the Federal Home Loan Mortgage Corporation [FHLMC])	338	(3)
Ginnie Mae (Formerly the Government National Mortgage Association [GNMA])	341	(2)
Electronic Underwriting System	343	(2)
The Real Estate Mortgage Investment Conduit (REMIC)	345	(2)
Summary	347	(2)
Review Questions	349	(1)
Exercises	350	(1)
Loan Defaults and Foreclosures	351	(26)
Key Terms	352	(2)
Defaults	354	(2)
Adjustments	356	(5)
Foreclosures	361	(10)
Summary	371	(3)
Review Questions	374	(2)
Exercises	376	(1)
What are the financial strategies and math calculations?
Investment Financing Strategies	377	(22)
Key Terms	378	(1)
Sale-Leaseback	378	(2)
Seller Refinances Prior to Sale	380	(1)
Trading on Seller's Equity	380	(1)
Equity Participation	381	(1)
Tax-Deferred Financing	382	(10)
Summary	392	(4)
Review Questions	396	(2)
Exercises	398	(1)
Mathematics of Real Estate Finance	399	(40)
Key Terms	401	(1)
Interest	402	(7)
Time Value of Money	409	(5)
Payment Schedules	414	(10)
Closing Statement Prorations	424	(2)
Measuring Profitability	426	(5)
Discounting Trust Deeds and Mortgages	431	(2)
Summary	433	(3)
Review Questions	436	(2)
Exercises	438	(1)
Glossary	439	(20)
Answer Key	459	(2)
Index	461