Real Estate Financing Terms

These flashcards cover key terms and concepts related to real estate financing as outlined in the lecture notes.

Sale and Leaseback

A financing arrangement in which a company sells its land and building to an investor and then leases it back.

Loan Origination Fee

A fee charged by the lender for making the loan, usually 1% of the loan amount.

Mortgage Brokers

Intermediaries that find lenders and arrange loans.

Mortgage Bankers

Set up loans using their own funds and service those loans.

Secondary Mortgage Market

The market where loans are bought from primary lenders.

Fannie Mae

Federal National Mortgage Association; buys FHA and VA insured loans.

Ginnie Mae

Government National Mortgage Association; buys loans for federal housing programs for low- and moderate-income households under HUD.

Freddie Mac

Federal Home Loan Mortgage Corporation; buys mortgages from savings and loans.

Truth in Lending Law

Requires lenders to provide borrowers with financing information about their loan.

Regulation Z

Enforces truth in lending law and establishes guidelines for loan cost disclosure, borrower's right of rescission, and fair advertising practice.

RESPA

Real Estate Settlement Procedures Act; covers disclosure of settlement costs of closing and applies only to first mortgage transactions financed by federal programs.

Capital Gain

The profit gained from the sale or exchange of an asset; can be deferred by making property exchanges within 24 months.