Section 5
In which U.S. market(s) do foreign lenders participate?
Both the primary and secondary mortgage markets
Georgette and Elise are buying a home together, and have taken out a loan with a private loan company. They'll pay a bit more interest, and larger fees, but they feel it's worth it to have the home they've always dreamed of. What else might the private loan company require?
Collateral
Private loan companies may charge higher interest, larger fees, and could require ______ to secure a loan.
Collateral
Commercial banks offer interim financing in the form of ______ loans.
Construction
Secured corporate bonds use ______ as collateral.
Corporate assets Corporate assets are used as collateral so that bond purchasers can repossess the asset in the event of default.
Which of the following is a form of commercial bank revenue related to mortgage financing?
Demand deposits
Which type of real estate investment trust is designed to deal exclusively in equities?
Equity REIT
Which type of real estate investment trust derives a portion of its income from interest dividends?
Mortgage REIT
Who originates their own loans?
Mortgage bankers
Which organization manages and charters credit unions?
NCUA
Joe works for a life insurance company that funds commercial investment projects and often insures these projects by insisting on an equity position. What type of financing does this describe?
Participation
What does REIT stand for?
Real Estate Investment Trust
What does it mean when a life insurance company uses participation financing?
The life insurance company participates by taking partial ownership of the project in exchange for funding the loan.
What did a 2021 National Association of REALTORS® study say about foreign investment in U.S. real estate?
The pandemic may be affecting some of these purchase numbers.
Anna is selling her home and met a nice young couple she really wanted to sell to, but they couldn't get financing. If Anna agrees to carry part of the loan for the buyers, what does she need to understand?
The risks involved
Who needs to obtain a mortgage loan originator endorsement and register with the Nationwide Mortgage Licensing System and Registry?
Anyone who acts as a mortgage loan originator
Memoryjet, Inc has developed a new technology for high-volume jump drives. In order to manufacture their new devices they will need to gear up a new production line, which will cost about $85 million. What kind of bond instrument could they use to help secure the funds they need for their new line?
Corporate bond
Which of the following is true about mortgage brokers?
They don't service the loan beyond placement.
Which of the following are ways a private loan company insulates themselves from the risk of lending funds to a borrower who has had problems securing them elsewhere?
They may charge higher interest, higher fees, and require the borrower provide collateral to secure the loan.
Mutual savings banks prefer to keep their lending activities in their immediate geographic area. Why?
They prefer to personally monitor the loans they issue.