Sources of Real Estate Financing

Question 1

Commercial Bank

Answer 1

A bank specializing in checking and savings accounts and short-term loans

Question 2

Credit Union

Answer 2

Similar to savings and loans - they are operated primarily for the benefit of their members or depositors

Question 3

Employee Retirement Income Security Act (ERISA)

Answer 3

A federal law that provides for the protection of assets set aside for pension and retirement plans through the establishment of the Pension Benefits Guaranty Corporation

Question 4

Mortgage Banker

Answer 4

A person who makes loans with his own funds, then sells the loans to investors

Question 5

Mortgage Broker

Answer 5

Processes loans but usually has no funds to loan; someone who brings borrowers and lenders together

Question 6

Mortgage Correspondent

Answer 6

A mortgage banker who represents loan originators, such as banks, life insurance companies, and pension funds

Question 7

Mutual Savings Banks

Answer 7

Banks organized as mutual companies, where profits are distributed to the depositors through interest or dividends

Question 8

Savings and Loans

Answer 8

Now called thrifts, they were formerly a primary source of residential real estate loans