Tx cont-16

1. Unit 5: Financing Real
Estate

2. UNIT 5: FINANCING REAL ESTATE
Overview of the Mortgage Markets
Primary Mortgage Market
 Fiduciary Lenders
 Commercial Banks  Thrifts
 Credit Unions  Life Insurance Companies
 Pension Funds
 Semi-Fiduciary Lenders
 Mortgage Companies
 Warehouse Line of Credit
 Real Estate Investment Trusts
 Non-Fiduciary Lenders
 Finance Companies  Private Individuals
 Third Party Originators
 Mortgage Brokers  Loan Correspondents

3. UNIT 5: FINANCING REAL ESTATE
Secondary Mortgage Market
 Housing GSEs
 Fannie Mae
 Freddie Mac
 Federal Home Loan Banks
 Ginnie Mae

4. UNIT 5: FINANCING REAL ESTATE
Classifying Types of Loans
 Purpose of the Loan
 Types of Repayment
 Single Principal and Interest Payment
 Interest-Only Payments
 Amortized (Installment) Payments
 Fixed-Rate Fully Amortized Loans
 Partially Amortized Loans
 Adjustable Rate Mortgage Loans
 Graduated Payment Mortgage Loans
 CLO and AU Systems
 Computerized Loan Origination
 Automated Underwriting

5. UNIT 5: FINANCING REAL ESTATE
Conventional Loans
 Conventional Loan Guidelines
 Loan-to-Value Ratios
 Down Payment
 Conforming Loans
 Conforming Loan Guidelines
 Suitable Property
 Loan Limits
 Debt-to-Income Ratios
 Private Mortgage Insurance
 Non-Conforming Loans
 Jumbo Loans
 Subprime Loans

6. UNIT 5: FINANCING REAL ESTATE
Government-Backed Loans
 Federal Housing Administration
 FHA Guidelines  Selected FHA Loan Programs
 Department of Veterans Affairs
 Benefits of VA-Guaranteed  VA Loan Process
Loans  Fees and Closing Costs
 Selected VA Loan Programs
 USDA Guaranteed Loan Program
 USDA Guidelines
 Income and Credit Guidelines  Property Guidelines
 Texas Veteran’s Land Board
 Veteran’s Housing Assistance  Veteran’s Land Program
Program
 Home Improvement Loan Program
 Texas Department of Housing and Community Affairs
 Texas State Affordable Housing Corporation

7. UNIT 5: FINANCING REAL ESTATE
Alternative Financing
 Seller Financing
 Carryback Financing
 Discounting Trust Deeds
 Wraparound Loan
 Secondary Financing
 Hard-Money Loan
 Swing Loan
 Home Equity Loan
 Home Equity Line of Credit Loan

8. UNIT 5: FINANCING REAL ESTATE
Foreclosures and Short Sales
 Foreclosure
 Non-Judicial Foreclosure
 Foreclosure by Court Proceeding (Judicial)
 Quasi-Judicial Foreclosures
 Short Sale
 Deficiency Judgments
 Deficiency Judgments - Junior Lienholders
 Deficiency Judgments - Deeds in Lieu of Foreclosure
 Deficiency Judgments - Short Sales

9. UNIT 5: FINANCING REAL ESTATE
Mortgage Laws and Financing Legislation
 Truth-in-Lending Act
 Regulation Z
 Disclosure Statement
 Advertising
 Right of Rescission
 Real Estate Settlement Procedures Act
 RESPA-Required Disclosures
 Equal Credit Opportunity Act
 Community Reinvestment Act
 Financial Disclosures Required by Texas Law
 Spanish Disclosure

10. UNIT 5: FINANCING REAL ESTATE
Security & Debt – Finance Instruments
 Promissory Note
 Fixed-Rate Note
 Adjustable-Rate Notes
 Negotiability of a Promissory Note
 Types of Promissory Notes
 Security Instruments
 Types of Security Instruments
 Uniform Texas Deed of Trust

11. UNIT 5: FINANCING REAL ESTATE
Promissory Notes
 Fixed-Rate Note
 Date & Property Description
 Parties to the Contract
 1. Borrower’s Promise to Pay
 2. Interest
 3. Payments
 4. Borrower’s Right to Prepay
 5. Loan Charges
 6. Borrower’s Failure to Pay as Required
 a. Late Charges  b. Default
 7. Giving of Notices
 8. Obligations of Persons under the Note
 9. Waivers
 10. Uniform Secured Note
 Signatures of the Borrowers

12. UNIT 5: FINANCING REAL ESTATE
Promissory Notes
 Fixed-Rate Balloon Notes
 Adjustable-Rate Notes
 Payments
 Interest Rate and Monthly Payment Changes
 Negotiability of a Promissory Note
 Protections for a Holder in Due Course
 Types of Promissory Notes

13. UNIT 5: FINANCING REAL ESTATE
Security Instruments
 Uniform Texas Deed of Trust
 Parties
 Title
 Uniform Covenants  Periodic Payments
 Application of Payments  Funds for Escrow Items
 Charges and Liens  Property Insurance
 Occupancy  Preservation and Maintenance of
 Borrower’s Loan Application the Property
 Lender’s Right to Protect its  Mortgage Insurance
Interest in the Property  Assignment of Miscellaneous
 Lender Forbearance Proceeds and Forfeiture
 Joint and Several Liability  Loan Charges
 Notices  Governing Law
 Borrower’s Copy  Transfer of the Property
 Borrower’s Right to Reinstate  Sale of Note and Change of
 Hazardous Substances Servicer

14. UNIT 5: FINANCING REAL ESTATE
Security Instruments
 Uniform Texas Deed of Trust
 Non-Uniform Covenants
 Reconveyance
 Remedy for Default
 Statutory Redemption
 Deficiency Judgment
 Statute of Limitations