11/21/2024 7:36:17 PM	RE 52 Course Outline as of Fall 2019	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:

Analysis of real estate financing, including lending policies and problems in financing transactions in residential apartments, commercial, and special purpose properties. Methods of financing properties emphasized. Applies toward State's educational requirements for the broker's examination and as a educational elective for the salesperson license.

Prerequisites/Corequisites:

Recommended Preparation:
Eligibility for ENGL 100 or ESL 100

Limits on Enrollment:

Schedule of Classes Information
Description:

Analysis of real estate financing, including lending policies and problems in financing transactions in residential apartments, commercial, and special purpose properties. Methods of financing properties emphasized. Applies toward State's educational requirements for the broker's examination and as a educational elective for the salesperson license.

(Grade Only)
Prerequisites:
Recommended:Eligibility for ENGL 100 or ESL 100
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.

4.  Satisfy the California Department of Real Estate elective education requirement for

    salespersons.

5.  Satisfy the California Department of Real Estate mandatory education requirement for

    brokers.

Objectives:

Upon completion of this course students will 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, U.S. 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, syndications

    C. Federal Housing Administration

    D. Veteran's Administration

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 between 25 and 40 pages per week

2. Analyze two to five of the following, including how each factor influences sales price and finance options:

    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. Homework: complete hypothetical purchaser qualification using standard industry instruments

4. Class performance and class participation

5. Chapter quizzes

6. Four exams and a final

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 available home loans-FHA-VA, Low Income, Conforming and Jumbo financing
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%
Chapter 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 Load Brokering. 8th ed. Huber, Walt and Zozula, Walt. Educational Textbook Company. 2017

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