Finance 1 - Nature & Cycle of RE Finance Flashcards
The first government’s program dedicated to restoring the American economy; also called the Stimulus Act.
American Recovery & Reinvestment Act of 2009 (ARRA)
The act retained some aspects of Taxpayer Relief Act of 1997, while eliminating others.
American Taxpayer Relief Act of 2012 (ATRA)
Persons born between 1946 and 1964.
baby boomers
Something having value that is given to secure repayment of a dept.
collateral
Established in 2010 under the Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) as an independent agency setting rules and regulations for any business providing financial services to consumers.
Consumer Financial Protection Bureau (CFPB)
A situation where more funds are being withdrawn from financial institutions than are being deposited.
disintermediation
Referred to as Generation Y or the Millennial General, the group of people following Generation X. Beginning birth dates range from the late 1970’s/early 1980’s to the early 2000.
echo boomers
Property ownership rights held by the purchaser in conjunction with transferring legal title to the lender by a security deed. Owner retains a right of redemption to reacquire the legal title from the lender when the loan is paid off.
equitable title
Generally considered to be those born between 1965 and 1976; tend to marry later and have a higher divorce rate and lower remarriage rate, resulting in a higher percentage of persons living alone.
Generation X
This program has given homeowners an opportunity to modify or refinance their mortgage in order to make the monthly payments affordable and avoid foreclosure.
Home Affordable Modification Program (HAMP)
A program of refinancing specifically designed for homeowners not eligible for
Home Affordable Refinance Program (HARP)
To pledge property as security for an obligation or loan without giving up possession of it.
hypothecation
The use of borrowed money to finance an investment.
leverage
Also known as Generation Y, this group of individuals born between 1980 and the mid-2000s is the largest generation in the United States.
millinnials
Packages of mortgage loans sold on the open market; some pools may be of the same type loans, while others may be multiple-issue pools.
mortgage-backed securities (MBSs)
Relieves borrower from liability to pay taxes on any monies forgiven by a bank due to a short sale or foreclosure.
Mortgage Forgiveness Debt Relief Act of 2007
The mortgage market in which loans are originated, consisting of lenders such as commercial banks, savings associates, credit union, mortgage brokers, and mortgage bankers.
primary market
Historically, real estate goes around in short-term (three to five years) and long-term (10 to 15 years) cycles. The ability to forecast future cycles is significant to investors.
real estate cycle
When a bank official signs off on numerous foreclosure papers without adequate research; blames for some of the current foreclosure problems.
robo-signing
A marketplace in which mortgages and trust deeds are traded. See also Fannie Mae, Freddie Mac, and Ginnie Mae.
secondary market
A sweeping revision of the income tax code providing homeowners with exemptions from capital gains ta on the sale of personal residences.
Taxpayer Relief Act of 1997 (TRA ‘97)
Signed into law in July 2010; includes provisions anticipated to restore responsibility and accountability to the financial system, including establishing the Consumer Financial Protection Bureau.
Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)
