please respond to biota. with. 100. words.
Chapter 1&2
17 hr
NewActions
BRE-126 Real Estate Finance
Bioleta Torres
13 Feb 2024
Huber, W
Chapter 1&2
Overview
In chapter one and two we get to learn the principles of where our money comes from and who controls it. It is a cycle in real estate business on how the market performs like the peak, recession, bottom, and recovery. It also covers the basis of the secondary mortgage market and different types of acts.
Key Concept Chapter 1
The Federal Reserve has control over our money supply and is our central bank (p.6). It is administered by an independent governing board and the Fed's responsibility is to credit the nation's economy and to control the flow of money. One of the FED’s functions is to protect the consumers in credit transactions by issuing Equal Credit Opportunity regulations as well as the Truth in Lending regulations.
Key Concept Chapter 2
The primary market is made up of commercial banks and mortgage companies who make loans directly to borrowers (p. 33). Lenders also sell their mortgages into the secondary mortgage market like FNMA and GNMA. They sell the mortgage loans to free up additional money for lending and allow them to continue their service to provide real estate financing.
Key Concept Chapter 2
The Federal Home Loan Mortgage Corporation was created through the Emergency Home Finance Act (p.38). The corporation was to aid savings and loan associations who were affected by the recession of 1969-1970. FHLMC was also authorized to deal in FHA, VA, and conventional mortgages. They were also placed under conservatorship by the Federal Housing Finance Agency.
Conclusion
by Bioleta Torres Garzon
We learn who has control over our money supply, which is the Federal Reserve which is administered by an independent governing board. There are also requirements to get an MLO license and we see how technology is advancing in the real estate industry. Finally the secondary mortgage market is essential because it is how we get our loans to be able to finance a house.