PPD final

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PPD final
2012-05-01 17:23:03

Final vocab
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  1. What are the three types of prepayment pentalite
    • 1. Percentage of remaing balance
    • 2. yield maintaince prepayment
    • 3. Defeasance prepayment (buy security that matches remaing balance)
  2. Funds payed by lender to appropritate parites on behalf of borrower
    escrow account
  3. What is a note
    defines terms and conditions of loan
  4. Legal action lender can take agianst borrower
    deficeincy judgement
  5. Mark up that lender adds to index rate
  6. What is rate cap
    restricting cahges in ARM adjustable rates
  7. Deed in lieu of foreclosure
    borrower simply conveys property to lender
  8. negative amortization
    loan doenst cover interest cost and reuslt in interest being aded to orginal balance
  9. Fannie Mae and Freedi Mac
    secondary mortgage market
  10. standard home lona not guaranteed by US goverment
    conventional loan
  11. most predominate conventional loan
    LPM Level Payment Mortgage
  12. Protectes leder against losses
    PMI Private Mortgage Insurance
  13. Reverse Mortgage
    Lender pays homeowner in return for equity in home (used for senior citizens)
  14. FHA v. VA loans
    FHA: cover all loses VA: cover percentage of losses
  15. Commission?
    Payment broker receives for services, is a percentage of sale price
  16. One broker is guarenteed commission on a property
    Exclusive Right of sale listing
  17. Obligation of agent to be completely open and honest
  18. Requirment for obtaining real estate salesperson license
    • 1. 18
    • 2. GED
    • 3. hours of course work
    • 4. good rep
    • 5. pass exam
    • 6. work under broker
  19. Only type of lisiting MLS accepts
    exclusive right to sale or lease
  20. Law imposed duties upon agents? List them?
    • Fiduciary
    • 1/. Confidentilty
    • 2. Disclosure
    • 3. loyalty
    • 4. Obedience
  21. required for licenesses, type of insurance for brokers
    errors and omissions
  22. contract between borker and princapl to sell propety
    lisitng contract
  23. Describes future value of money
    Future value
  24. All things being equal, opt for investment with highest
    cash on cash return or Net Present Value
  25. as interest rates fall, Present value of future income goes
  26. Types of closing fees
    • 1. Title and mortgage insurance
    • 2. Recording fees
    • 3. tadez
    • aprrisal and survey
  27. artifically lower interest rate
    teaser rate
  28. Mortgages used preimarliy in short term commerical mortgages, non amortiziing, orglian loan blaance due at matureity
    Interest only or straight term loan
  29. Loan where lender cannot lay claim to personal asests of person in default
    non recourse loan
  30. Type of loan not suitable for long term commerical financing
    balloon mortgage
  31. process of bank assesing all info vefore funding loan
    loan underwriting
  32. Items included in loan submission package
    • 1. loan application
    • 2. descritpion of property
    • 3. legal aspect
    • 4. estimated cash flow
    • 5. appriasl report
  33. What is mezzanine financing
    second mortgage, debt is secured by peldge of an equity interest
  34. Property owner sells prperty and leases property back from buyer
    sale and lease back
  35. Lender will supply equity aswell as debt capital in return for owenership interest
    joint venture
  36. what is the approximate market value of commerical property in US
    5.3 trillion
  37. What type of REIT invest in and operates commerical properties
    Equity REIT
  38. REIT
    Real Estate equity held in form of publicly traded company
  39. why have penions fund been aprehevise to invest in real estate
    • 1. too risky
    • 2. difficult to manage
    • 3. too illquid
  40. what is the fastest growing fund of comerical mortagages
    CMBSs Comerical Mortgage BAcked securities
  41. Majority of market values are in REITS tha specialized in what types of properties
    terail, apartments, office, and health care
  42. These loans are considered risy if a developer fails to complete new project
    second mortgage and mezzanine loans
  43. property owner restores property to satifactory conditions
  44. managment fees are based on
    percentage of properyts effective gross income
  45. leasing agenst that help companies find sutibable office space
    tenant reps
  46. who oversee day to day operation of properties
    propety managers
  47. tenant's transer of protion of rights to another
  48. rent tied to changes in CPI
    Indexed lease
  49. Area of tenatn's leased place plus prorated share of common areas
    rentable area
  50. First step of development process
    est. site control
  51. four essential requriment of developer
    money, knowledge, tenants, land
  52. centeral authority in charge of coordinating and controlling construction phase
    general contrator
  53. Issued to owern by local government allowing them to move in
    certificant occupancy
  54. marketing and constuction financing are what costs
    soft costs
  55. Land is the land size of Grove and Americana
    G: 17.5 acres A: 15.5
  56. sq feet of G and A
    G: 575,000 A: 475,000
  57. size of G and A parks
    g: one acre A: 2