After successfully completing this course, students will fulfill the following Learning Objectives:
1. Identify real estate finance principles, concepts, and best practices.
2. Explain the nature of real estate finance including mortgage lending activities and real estate cycles.
3. Identify and discuss the Federal Reserve System, instruments of credit policy, the United States Treasury and the Federal Home Loan Bank System (FHLB).
4. Compare and contrast commercial and residential real estate in the mortgage market.
5. Differentiate between entities of the secondary mortgage market including the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Association (Ginnie Mae).
6. Discuss sources of funding such as commercial banks, mutual savings banks, savings associations, life insurance companies, credit unions, and pension and retirement programs
7. Define instruments of real estate and their use including encumbrances and liens, Notes,Deeds of Trust, Contracts for Deed (Land Contract), and junior finance instruments.
8. Discuss the details of conventional loans, interest rates, private mortgage insurance (PMI), borrower’s qualifications, and special conventional loan programs.
9. Describe the process involved in closing real estate loans.
10. Identify some contemporary real estate financing options.