12/21/2024 5:19:16 AM	RE 52 Course Outline as of Fall 2025	Changed Course
CATALOG INFORMATION
Discipline and Nbr:  RE 52	Title:  REAL ESTATE FINANCE
Full Title:  Real Estate Finance
Last Reviewed:2/12/2024

Units		Course Hours per Week			Nbr of Weeks	Course Hours Total
Maximum	3.00	Lecture Scheduled	3.00		17.5 max.	Lecture Scheduled	52.50
Minimum	3.00	Lab Scheduled	0		6 min.	Lab Scheduled	0
		Contact DHR	0			Contact DHR	0
		Contact Total	3.00			Contact Total	52.50
		Non-contact DHR	0			Non-contact DHR Total	0

Total Out of Class Hours:  105.00

Total Student Learning Hours: 157.50

Title 5 Category:  AA Degree Applicable
Grading:  Grade Only
Repeatability:  00 - Two Repeats if Grade was D, F, NC, or NP
Also Listed As: 
Formerly:  RE 80E

Catalog Description:

In this course, students will analyze real estate financing, including lending policies and problems in financing transactions in residential, apartments, commercial, and special purpose properties. Methods of financing properties will be emphasized. This course is required to apply for the California State Broker's license examination and applies as an elective towards the California Real Estate Salesperson examination.

Prerequisites/Corequisites:

Recommended Preparation:

Limits on Enrollment:

Schedule of Classes Information
Description:

In this course, students will analyze real estate financing, including lending policies and problems in financing transactions in residential, apartments, commercial, and special purpose properties. Methods of financing properties will be emphasized. This course is required to apply for the California State Broker's license examination and applies as an elective towards the California Real Estate Salesperson examination.

(Grade Only)
Prerequisites:
Recommended:
Limits on Enrollment:
Transfer Credit:CSU;
Repeatability:00 - Two Repeats if Grade was D, F, NC, or NP

ARTICULATION, MAJOR, and CERTIFICATION INFORMATION

Associate Degree:		Effective:		Inactive:
Area:
CSU GE:	Transfer Area			Effective:	Inactive:
IGETC:	Transfer Area			Effective:	Inactive:
CSU Transfer:	Transferable	Effective:	Fall 1981	Inactive:
UC Transfer:		Effective:		Inactive:
C-ID:

Certificate/Major Applicable: Both Certificate and Major Applicable

COURSE CONTENT

Student Learning Outcomes:
At the conclusion of this course, the student should be able to:

1. Outline and plan financing opportunities available for real property.

2. Examine and integrate current economic conditions into the availability of credit.

3. Identify and originate the required instruments of real estate finance.

 

Objectives:

At the conclusion of this course, the student should be able to:

1. Analyze the credit lending environment in terms of local and national factors, economic indicators, and the Federal Reserve System.

2. Evaluate loan analysis including income, assets, credit, and property.

3. Differentiate, compare, and contrast mortgage markets including the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, local banks and savings associations, as well as private sources of funds.

4. Examine requisites of commercial lending including collateral, leases, and vacancy.

5. Prepare instruments of real estate financing including notes, deeds of trust, and installment sales contracts.

Topics and Scope

I. Money, Credit, and the Monetary System

    A. Real estate cycles

    B. Federal Reserve System and the United States Treasury

    C. Federal Home Loan bank system

II. Fiduciary, Semi, and Non-Fiduciary Sources for Real Estate Financing

    A. Commercial banks, savings and loans, and life insurance companies

    B. Mortgage bankers, mortgage brokers, trusts, and syndications

    C. Federal Housing Administration (FHA)

    D. Veteran's Administration (VA)

III. Conventional, Insured, and Government Loans

    A. Private sector conventional loans

    B. Public sector

         1. Federal Housing Administration

         2. Veteran's Administration

         3. Cal-Vet Home Loan Program

         4. California Housing Finance Agency

IV. Instruments of Real Estate Finance

    A. Promissory notes

    B. Deeds of trust

    C. Note and mortgage

    D. Sales contract

V. Loan Processing and Loan Underwriting

    A. Verification of income, assets, and credit

    B. Property including collateral

    C. Exhibits, documents, and closing

VI. Mathematics of Real Estate Finance

    A. Interest

    B. Payment schedules

    C. Prorations

    D. Discounting

Assignments:

1. Reading (approximately 25 to 40 pages per week)

2. Analyses of loan factors (2-5)

    A. the difference between residential and commercial lending

    B. the relation of interest rate environment

    C. choice of lender

    D. loan product

    E. credit scoring

3. Complete hypothetical purchaser qualification using standard industry instruments

4. Class performance and class participation

5. Quizzes, exams, and final exam

Methods of Evaluation/Basis of Grade.

Writing: Assessment tools that demonstrate writing skill and/or require students to select, organize and explain ideas in writing.		Writing 0 - 20%
Analyses of loan factors
This is a degree applicable course but assessment tools based on writing are not included because problem solving assessments are more appropriate for this course.
Problem solving: Assessment tools, other than exams, that demonstrate competence in computational or non-computational problem solving skills.		Problem Solving 5 - 20%
Hypothetical purchaser qualification
Skill Demonstrations: All skill-based and physical demonstrations used for assessment purposes including skill performance exams.		Skill Demonstrations 0 - 10%
Class performance, analyses of finance topics
Exams: All forms of formal testing, other than skill performance exams.		Exams 50 - 70%
Quizzes, exams, and final exam
Other: Includes any assessment tools that do not logically fit into the above categories.		Other Category 5 - 15%
Attendance and participation

Representative Textbooks and Materials:

Real Estate Finance and Loan Brokering. 8th ed. Huber, Walt and Zozula, Walt. Educational Textbook Company. 2017 (classic)

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