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FIN 331 Real Estate

FIN 331 Real Estate. Phase 3 Exam Chapters 11, 13, 15, 18, 19, 22 Spring 2014. Chapter 11 Funding Residential Mortgages. What is disintermediation ? How did it affect the Savings and Loan industry? How is the Housing Expense ratio calculated ?

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FIN 331 Real Estate

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  1. FIN 331 Real Estate

    Phase 3 Exam Chapters 11, 13, 15, 18, 19, 22 Spring 2014
  2. Chapter 11Funding Residential Mortgages What is disintermediation? How did it affect the Savings and Loan industry? How is the Housing Expense ratio calculated? How do lenders evaluate the risk of loan default? What is the most profitable activity for mortgage bankers? How do mortgage brokers differ from mortgage bankers? What is a subprime mortgage? Who gets them? What is loan underwriting? What are the three “C’s”? What is the mortgage pipeline timeline?
  3. Chapter 13Contracts for Sale and Closing What are the basic requirements for a RE contract? What does it mean to have a power of attorney? What form is required by the RESPA? What is earnest money? What is meant by constructive notice? Describe/Define: Specific performance, Consideration, Acting under duress, Equitable title, Contingency
  4. Chapter 15Mortgage Cost Calculations What is earnest money? Does it affect borrowing costs? What costs must be considered in computing the APR required by the TILA? How do points affect the lender’s yield? What is one of the relevant criteria for selecting a mortgage? What are balloon payments? How do they affect mortgage payments? How do adjustable rate mortgages work? Be able to compute: max borrowing amount, monthly payments, lender’s yield, Effective Borrowing costs, balances.
  5. Chapter 18Investment Decisions: Ratios Know what is meant by; Operating Expense Ratio Loan-to-Value Ratio Debt Coverage ratio Net Income Mult., Effective Gross Income Mult. Capitalization Rate Why do real estate investors prefer using leverage? How does above the line and below the line treatment of CAPEX affect NOI? How are capital expenditures related to value?
  6. Chapter 19Investment Decisions: NPV and IRR RE investments are subject to the same value analysis as other types of investments: Net Present Value What are the decision rules for NPV? How does leverage affect ROE? Computing NPV
  7. Chapter 22Leases and Property Types What are some of the essential elements in a lease agreement? What is an anchor tenant? When does a tenant get quiet enjoyment? How are commercial rents quoted? What is a graduated rent? When would a tenant most likely get a concession?
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