Introduction

Interest Rates, Demand for Mortgages, Interest Rate Volatility, Capital Markets, Regulation of Financial Institutions, Consolidation in the Financial Services Industry Specialization in the Financial services Industry.

U. S. Banking and Monetary System

What is money? The Federal Reserve System, U. S. Treasury, Federal Home Loan Bank System, The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), Federal Deposit Insurance Corp. (FDIC), The Office of Thrift Supervision (OTS), The Federal Housing Finance Board The Resolution Trust Corp. (RTC), The Resolution Funding Corp. (REFCO), The Effects of FIRREA on Real Estate Lending.

Primary Sources of Real Estate Finance

Savings and Loans, Commercial Banks, Mortgage Banking Companies, Mortgage Brokers, Credit Unions, Mutual Savings Banks, Life Insurance Companies, Individuals, Farmers Home Administrations.

The Secondary Mortgage Market

Federal National Mortgage Association (FNMA), Government National Mortgage Association, Federal Home Loan Mortgage Association, Growth of the Secondary Market.

Real Property Ownership and Interest

Estates in Real Property, Freehold Estates, Non freehold Estates (Leasehold Estates), Ownership of Real Property, Combination Forms of Ownership, Encumbrances and Liens, Title Lien Theory, Financing Instruments, Evidence of Title, Assumption, Subject to, Novation.

Conventional Mortgage Loans

30 Year Fixed Rate, 15 Year Fixed Rate, Buy downs, Graduated Payment Mortgage, Reduction Option Loan (ROL), Mortgage Insurance, State of New York Mortgage Agency (SONYMA), Fannie Mae Two-Step Loan, Balloon Mortgage, Growing Equity Mortgage, Biweekly Mortgage, Equal Loan, Adjustable Rate Mortgage, Private Mortgage Insurance.

The FHA Insured Mortgage Program

Purpose of the FHA, FHA Mortgage Insurance Program, Types of FHA Insured Loans, Processing and underwriting the FHA Loan, Assumptions, Interest Rate, HUD Allowable Closing Cost, HUD/FHA Income Property Financing, HUD Contributions to Housing and Real Estate Finance, Case IN POINT.

The VA Mortgage Guarantee Program

Entitlement, Guaranteed Loan, Processing Procedures, Assumption of a VA Loan, VA Refinance, VA Foreclosure, Advantages of a VA Loan, CASE IN POINT.

Alternative Financing Options

Mortgage Instruments, Housing Finance Agencies, Refinancing.

The Mortgage Loan Process and Settlement Procedures

The Loan Application Process, Processing the Loan, Underwriting the Loan: Risk Analysis, Settlement Procedures: the Loan Closing, Case Point, Student Practice.

Real Estate Appraisal

Economic Principals of Appraisal, Purpose of Appraisal, the Appraisal Process, Market Value, the Appraisal Form, Approaches to Value, Income Capitalization, Reconciliation of Data, Final estimate and Report, Appraisal of 1-3 & Multi-Family housing in Metro NY, Professional Appraisal Societies, Appraisal Licensing.

Mortgage Loan Servicing and Foreclosure

Investor Accounting, Escrow Administration, Insurance, Customer Service, Loan Payoff, Collection, Foreclosure, Servicing Fee Income.

Federal Regulations Affecting the Mortgage Lending Business

Truth-in-Lending Law, Consumer Protection Act of 1969, Real Settlement Procedures Act (RESPA), Equal Credit Opportunity Act (ECOA), Fair Housing and Home Mortgage Disclosure Act, Fair Credit Reporting Act, Flood Disaster Protection Act. Application Disclosure for Adjustable Rate Mortgages, Garn-St. Germain Act of 1982, Americans with Disabilities Act.

Income Property Loans

Income Property lenders, Participation Loans, Whole Loans, Types of Property, Underwriting: Risk Analysis, types of financing.

Tax Considerations in Real Estate

Tax advantages of buying and owning a home, deduction of home mortgage interest, when can discount points be deducted, rollover rule or deferred reporting, age-55-and-over exclusion, CASE IN POINT, investment Real Estate and the 1986 Tax Law, Revenue Reconciliation Act of 1993.