RE Finance Unit 4: Non-Institutional Lenders Flashcards
Balanced Trust
A trust that participated in real estate investments as both financier and investor
Balloon Payment
The final payment of a partially amortized loan that is considerably larger than the required periodic payments.
Blue-Sky Provision
Requiring full disclosure of all risks in a limited partnership solicitation under the Uniform Partnership Act.
Combination Trust
A trust that participates in real estate investments as both financier and investor
Correspondent
A mortgage banker.
Cosigners
Additional signers to a financial agreement adding their guarantees to that of the borrowers.
Debenture
Bonds issued without any specific collateral pledge but secured by the general assets of the issuer.
Equity Trust
An investment trust dealing in ownerships rather than in financing.
General Obligation Bond
Public improvement bond to be paid from property taxes.
General Partner
In a limited partnership, the individual or company acquiring, organizing, and managing the investment.
Industrial Revenue Bonds
Bonds issued for developing an industrial park or for constructing a building for lease to commercial tenants.
Investment Conduit
Set up to invest in real estate, that must have at least 100 investors; management, control, and title to the property are in the hands of trustees.
Limited Liability Company
A form of business organization with limited liability. It avoids the restrictions of limited partnerships and is taxed like a partnership.
Limited Partner
In a syndicate or regular partnership, the owners other than the general partners. Liability is limited to the amount of their investment.
Line of Credit
An amount stipulated by a commercial bank to an active customer on an annual basis. Must be brought to zero on an agreed upon regular date.
Mortgage Banker
Financial intermediary who originates new mortgage loans, collects payments, inspects the collateral, and forecloses, if necessary.
Mortgage Broker
Agent who joins borrower and lender for a real estate loan, thereby earning a placement fee.
Mortgage Companies
Businesses designed to lend money on real or personal property.
Mortgage Revenue Bond
A type of industrial development bond that is offered by state and local governments through their housing financing agencies and is tax-exempt.
Municipal Bonds
Bonds issued for purposes of financing public improvements, such as schools, parks, and renewal projects.
Non-Institutional Lenders
A financing company that is not a federally regulated banking or financial institution.
Real Estate Investment Trust (REIT)
An unincorporated trust, set up to invest in real estate, that must have at least 100 investors; management, control, and title to the property are in the hands of trustees.
Real Estate Mortgage Trust (REMT)
Similar to a REIT, but investment is made in mortgage securities rather than in real estate.
Syndicate
An organization of investors who pool their capital to make a real estate investment.
Truth in Lending, RESPA, Integrated Disclosures (TRID)
As of October 3, 2015, TRID combines the former separate Good Faith Estimate and HUD-1 Settlement statement into one disclosure called the Loan Estimate. (The Closing Disclosure replaces the HUD-1.)
Warehousing
Guaranteeing for a specified time and fee, that funds will be available under certain terms and conditions; assembling into one package a number of mortgage loans, which the correspondent has originated, in anticipation of sale in the secondary market.
Zero Coupon Bond
A single-payment bond that grows to face value over a prescribed time period at a specified interest rate. All interim compound interest is tax-deferred until the bond is cashed.
