Maricopa Community Colleges  REA282   19956-99999 
Official Course Description: MCCCD Approval: 06/27/95
REA282 19956-99999 LEC 3 Credit(s) 3 Period(s)
Real Estate Finance
Study of lending institutions, including banks, savings and loans, conventional loans, Federal Housing Administration (FHA), Veterans Administration (VA) for residential, commercial and industrial property. Prerequisites: REA179 or permission of instructor.
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MCCCD Official Course Competencies:
 
REA282   19956-99999 Real Estate Finance
1. Trace the historical development of real estate financing. (I)
2. List and describe the primary sources of loans. (II)
3. Describe the secondary money market. (II)
4. Compare FHA, VA and conventional loans. (III)
5. Explain how sellers can offer financing to buyers. (IV)
6. Contrast construction, development, bridge, and permanent financing. (V)
7. Describe commercial and investment lending practices. (VI)
8. Identify federal and state agencies that regulate lenders. (VII)
9. Explain how interest rates are influenced by the federal reserve bank board. (VII, VIII)
10. Identity and explain the documents used in real estate. (IX)
11. Describe the foreclosure processes in Arizona, and define the rights to a deficiency suit. (X)
12. Describe the loan application process including the qualification of the borrower and the property. (XI)
13. List the protected parties in the equal credit opportunity act. (XII)
14. Describe the disclosure requirements of the truth in lending act. (XIII)
15. Describe the loan settlement requirements under RESPA. (XIV)
16. List the income tax considerations for deductions of points, interest and explain how a gain on sale is taxed. (XV)
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MCCCD Official Course Outline:
 
REA282   19956-99999 Real Estate Finance
    I. Origin and Development of Real Estate Financing
        A. Common law
        B. Statutory law
        C. Regulation
      II. Sources of Financing Loans
          A. Primary lenders
          B. Secondary money market
        III. Types of Loans
            A. FHA
            B. VA
            C. Conventional
            D. Refinancing
          IV. Seller Financing
              A. Assumption
              B. Subject to approval
              C. Agreement for sale
            V. Construction and Development Financing
                A. Construction
                B. Bridge
                C. Take out
                D. Permanent
              VI. Commercial and Investment Loans
                  A. Commercial lenders
                  B. Venture capital sources
                  C. Small business administration
                  D. Syndication
                  E. Real estate investment trust
                  F. Real estate mortgage investment conduits
                VII. Federal and State Regulations
                    A. Federal reserve bank system
                    B. Arizona department of banks
                    C. Deposit insurance
                  VIII. Regulatory Influence on Interest Rates
                      A. Discount rates
                      B. Reserve requirements
                      C. Investment in treasury bills
                    IX. Documents used In Real Estate Financing
                        A. Letters of credits
                        B. Promissory notes
                        C. Security for notes
                        D. Agreements for sale
                      X. Foreclosure
                          A. Deed in lieu
                          B. Lien vs. title theory
                          C. Judicial process
                          D. Trustee's sale
                          E. Deficiency statutes
                        XI. The Loan Application Process
                            A. Borrower qualification
                            B. Property qualification
                            C. Environmental impact studies
                          XII. Equal Credit Opportunity
                              A. Discrimination in lending prohibitions
                              B. Redlining
                            XIII. Truth in Lending Law
                                A. Transactions covered
                                B. Disclosure requirements
                              XIV. Loan Settlement Procedures
                                  A. RESPA
                                  B. Settlement statement
                                  C. Reporting transaction requirements
                                XV. Income Tax Considerations
                                    A. Interest deductions
                                    B. Deductible points
                                    C. Deferment of tax on gain
                                    D. Once in a lifetime forgiven tax
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