11/21/2024 10:08:16 AM	RE 52 Course Outline as of Spring 2012	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.  

Prerequisites/Corequisites:

Recommended Preparation:
Course Eligibility for ENGL 100 or ESL 100 and Course Completion of BMG 54

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.

(Grade Only)
Prerequisites:
Recommended:Course Eligibility for ENGL 100 or ESL 100 and Course Completion of BMG 54
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

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

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

1. Money, credit and the monetary system

     a. Real estate cycles

     b. Federal Reserve System, U.S. Treasury

     c. Federal Home Loan bank system

2. 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

3. 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

4. Instruments of real estate finance

     a. Promissory notes

     b. Deeds of trust

     c. Note and mortgage

     d. Sales contract

5. Loan processing and loan underwriting

     a. Verification of income, assets, and credit

     b. Property including collateral

     c. Exhibits, documents, and closing

6. Mathematics of real estate finance

     a. Interest

     b. Payment schedules

     c. Prorations

     d. Discounting

Assignments:

1.  Reading assignments of between 25 and 40 pages per week

2.  Case studies: residential vs. commercial financing

3.  Four exams and a final

4.  Transaction analysis: relation of interest rate environment, choice of lender, loan product, purchaser credit rating and how each factor influences sales price and finance options

5.  Homework: complete hypothetical purchaser qualification using standard industry instruments

6.  Class performance, role playing and oral presentations

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 25 - 35%
Written homework, reading assignments, case studies, analyses
Problem solving: Assessment tools, other than exams, that demonstrate competence in computational or non-computational problem solving skills.		Problem Solving 0 - 0%
None
Skill Demonstrations: All skill-based and physical demonstrations used for assessment purposes including skill performance exams.		Skill Demonstrations 5 - 10%
Class performances
Exams: All forms of formal testing, other than skill performance exams.		Exams 50 - 65%
Exams to include multiple choice, true/false, and essay
Other: Includes any assessment tools that do not logically fit into the above categories.		Other Category 5 - 15%
Participation

Representative Textbooks and Materials:

California Reas Estate Finance, by Lush and Sirota. 7th Edition., Dearborn Publishing, 2010.

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