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The authority for national banks to engage in real estate lending
is set forth at 12 USC 371 and the Comptroller of the Currency's regulations at
12 CFR 34.http://www.occ.treas.gov/handbook/realcon.pdf.
The borrower in project financing may take any one of several legal forms to
hold title to the real estate. Although banks usually prefer to finance the land
development and construction phases of a real estate project, they also provide
short-term financing for completed projects. While macroeconomic conditions are
important factors affecting the overall state of the real estate industry, local
supply and demand conditions are by far the more important factors affecting
real estate markets. Population growth is a key factor for all sectors of the
real estate industry because it influences consumer spending and the demand for
goods and services. Given the nature of most commercial real estate markets, the
financing of commercial real estate projects is subject to an exceptionally high
degree of credit risk. Banks engaged in commercial real estate lending also
expose themselves to what is commonly referred to as environmental risk.
Policies or procedures should be in place to protect the bank from liability for
any environmental hazards associated with real estate that it holds as
collateral. An excessive number of exceptions to the real estate lending policy
may indicate that the bank is unduly relaxing its underwriting practices or it
may suggest that the bank needs to revise its loan policy. As is true of all
lending activities, a bank's primary concern should be that its real estate
loans are made with a reasonable probability that the borrower will have
sufficient The Real Estate Program provides an opportunity for students to earn an A.http://www.cabrillo.edu/publications/brochures/re.pdf.S. degree or Certificate in Real Estate or expand their knowledge of the real estate industry. The real estate field offers a wide variety of career possibilities, ranging from a real estate sales agent to a mortgage banker or real estate broker. The program offers courses that are approved and required by the California Department of Real Estate to obtain the salesperson or broker license. The real estate field offers a variety of employment opportu-nities to qualified, knowledgeable, and licensed persons. These opportunities include positions in real estate brokerage offices, mortgage lending companies, appraisal firms, and title and escrow companies. Each position within the field has its own educational and licensing requirements which are all determined and approved by the California Department of Real Estate (DRE). Please see the department’s website for more specific information about opportunities in the field of real estate: www.dre.ca.gov. An applicant for real estate salesperson’s license must be at least 18 years old, be honest and truthful, pass a qualifying examination, and meet educational requirements. An applicant must have taken, prior to the examination, a college level course in real estate principles (RE 150). Any two may be chosen from the following: ACCT 1A Financial Accounting ACCT 151A Introduction to Accounting: Bookkeeping Concepts RE 151 Real Estate Economics RE 152 Real Estate Practice RE 153 Real Estate Finance RE 154A Legal Aspects of Real Estate RE 155A Real Estate Appraisal RE 156 Escrow However, a salesperson without Washington, D.http://www.consumerfed.org/pdfs/Real_Estate_Survey060107.pdf.C. -- According to a comprehensive survey of consumer knowledge and opinion about real estate services, most Americans view real estate agents, brokers, and services favorably, but understand these services poorly and object to specific industry practices. Respondents who had recently used the services of an agent or broker view the industry more positively, and are more knowledgeable about yet more critical of actual practices, than are other respondents. "Most consumers disapprove of actual industry practices related to access to listings, disclosure of representation and compensation, "dual agency," commission levels, anti-competitive state laws, and industry domination of state commissions," said Stephen Brobeck, Consumer Federation of America's Executive Director, who analyzed data collected in June 2006 "Yet, most consumers have favorable views of real estate agents and brokers and the services they offer," he added. ORC surveyed 2036 representative Americans, 565 of whom had used the services of an agent or broker in the past five years. For the entire sample, the margin of error was plus or minus two percentage points. All survey questions and responses can be found on the CFA website. Only 36% of all respondents said they know "a lot" or "a fair amount" about "real estate agents and brokers and their consumer services. And in fact, only a minority knew that the local multiple listing service is the most complete source of information about homes for sale (34%), that one's broker may not represent one's financial interests, that commissions can be negotiated (26%), and that state real http://www.http://www.realstat.com/download/discredit.pdf.tristaterca.com/tristaterca/ Real Estate Brokers have confidence but a real estate appraiser must have evidence especially when serving as an expert witness. Unfortunately, in most instances real estate appraisers make subjective, anecdotal, arbitrary, and unscientific “adjustments” to comparable sales market data without objective market-based support. Their valuation process relies on comparable building sales (Sales Comparison Approach), comparable rental rates (Income Capitalization Approach) and vacant land sales (Cost Approach). This paper will provide a simple mathematical test that can disprove most real estate appraisal reports in one minute. Variance in the real estate market is not calculated The term econometrics literally means economic measurement. It is the application of statistical analytical mathematical tools, mainly regression analysis, to the real world of economics. Predict economic activity (estimate value of real estate). Econometrics empowers real estate appraisers to describe accurately the relationship between sale price and the various factors that contribute to the value of real estate, test the significance of these factors, and apply the resultant econometric indicators to a credible estimate of value for a particular property. Real estate is an imperfect marketplace and hence has a built-in variance. Two prioperties that are exactly alike in age, size, location, etc. that are sold on the same day will not sell for the same price because the real estate market is an imperfect market that contains an inherent price variance. This paper illustrates the accuracy (a) A person shall apply for an original license under the provisions of the Real Estate Law on the form of application prescribed by the Department.. The applicant shall complete and sign the application form and submit it and the fee for the license in question to an office of the Department. Submission of a transaction in this manner through the Department's Web site shall constitute irrefutable evidence of legal signature by any individual submitting such transaction to the Department. The benefits are needed to enable the alien’s child to become self-sufficient following separation from the abuser. With regard to naturalized citizens and derivative citizens presenting certificates of citizenship and aliens, the INS is the appropriate government entity to contact for verification. If the applicant has lost his or her original documents or presents expired documents or is unable to present any documentation evidencing his or her immigration status, the applicant should be referred to the local INS office to obtain documentation. A real estate broker license shall not be issued to a person who has not attained the age of 18 years. Whenever a real estate salesperson enters the employ of a real estate broker, the broker shall notify the commissioner of that fact within five days. The license certificate of a real estate salesperson licensee shall be retained at the main business office of the real estate broker to whom the salesperson is licensed. If a subdivider proposes to sell subdivision interests using real property sales contracts (hereafter sales contracts) as defined in Section 10029 of the Code, a plan under which If you own Real Estate or are thinking of buying Real Estate, then you need to read this book NOW! Find out what is really happening in the real estate market today! Find out what important sources are saying about the real estate market! Find out the facts that you need to know about the real estate market! Find out how you can prosper and protect yourself in the changing real estate market! This book answers these important questions: Should you sell your real estate now? How can you protect yourself if the real estate market goes down? How can you sell your real estate for the most money? How can you improve the look of your home for low costs? How can you identify value real estate versus bubble real estate?http://www.myrealestatebubble.com/htp/back_cover.pdf Consumers paid an estimated $61 billion in residential real estate brokerage fees in 2004.http://www.gao.gov/new.items/d05947.pdf. Finally, there has been ongoing debate about the potential competitive effects of bank involvement in real estate brokerage. The Internet has changed the way consumers look for real estate and has facilitated the creation and expansion of alternatives to traditional brokers. Although about 30 states potentially authorize state-chartered banks or their operating subsidiaries to engage in some form of residential real estate brokerage, few banks in these states appear to have done so. You requested that we review issues related to price competition and the use of information technology in the residential real estate brokerage industry. We did not collect original data on residential real estate brokerage fees or attempt to analyze the extent of price competition within any specific market. We spoke with these states’ banking regulatory agencies and real estate trade associations, as well as with seven banks in these states that engage in residential real estate brokerage. The exact number of state-chartered banks engaged in real estate brokerage is unknown but appears to be limited, according to trade and regulator associations in the banking and real estate industries. Because real estate transactions are complex and infrequent for most people, many consumers benefit from a broker’s specialized knowledge of the process and of local market conditions. Most local real estate markets have an MLS that pools information about homes that area brokers have agreed to sell. Individual states regulate real estate brokerage, www.http://www.oc.ca.gov/assessor/pdf/RealEstateFraudAlert.pdf.ocgov.com/assessor Real estate fraud is a form of theft criminals may use to steal your home, real estate holdings or the equity in your property. Real estate fraud is on the rise throughout the county and can take many forms. Your best protection against fraud is to be aware of the warning signs, and report any suspicious activity or transactions against your property. COMMON REAL PROPERTY FRAUDS: Home Equity/Identity Fraud - A forged deed is recorded to give the appearance that the perpetrator has acquired ownership of a property. The perpetrator uses the equity in the property as collateral to borrow money. No payments are made on the new loan(s), and the true owner could face foreclosure. Home Renovation/Mortgage Fraud - Contractors offer to do home improvement work or lenders offer special “low-interest” financing, but do not deliver what was promised. Homeowners are left with partially complete or substandard construction, or a mortgage payment that is higher than expected. Real Estate Investment/Foreclosure Fraud - Investors are lured into buying property that is supposedly facing foreclosure for pennies on the dollar. Quitclaim deeds and other documents are forged to give the appearance that a property is being sold to avoid foreclosure. COMMON WARNING SIGNS: Missing Property Value Notice Or Tax Bill - A missing property value notice or property tax bill can be the first signs of a Home Equity Fraud. The Assessor mails property value notices in July, and the Tax Collector mails the bills in September. The California Department of Real Estate has published this booklet in response to an apparent need for information concerning disclosures required in real property transactions.http://www.realhazards.com/docs/realestatedisclosure.pdf. The first part of this booklet deals with disclosures required in residential property transactions, including disclosures specific to real estate financing. For the purposes of these requirements, real estate “agent” does not include one who represents only the buyer and receives compensation only from the buyer. If more than one real estate broker is acting as the seller’s agent, the broker who obtained the offer is responsible for delivery of the report in person or by mail, unless the seller directs otherwise in writing. In certain California real estate sale transactions, buyers must withhold 3 1/3% of the total sales prices as state income tax and deliver the sums withheld to the State Franchise Tax Board. To provide an explanation of agency relationships and duties, the law requires that a real estate broker disclose in writing the general duties which arise from certain agency relationships. When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship and representation you wish to have with the agent in the transaction. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction. This section deals primarily with disclosures a real estate licensee or a lender must make to a prospective borrower in certain real property secured loan Coastal Community Foundation wishes to assist donors who want to make charitable gifts using real estate.http://www.ccfgives.org/pdf/policy_gifts_realestate.pdf. Gifts of Real Estate: One of the primary considerations in acceptance of real property is its value relative to its marketability. Donors cover all expenses incurred in the acceptance and liquidation of a real estate gift. CCF normally will not accept real estate encumbered by a mortgage or other liens. A gift of encumbered real property may cause adverse tax consequences to the donor. CCF will take into account the depreciation of real estate in considering gifts offered. Gifts of Real Estate: for Real Estate Gifts” is to be completed and documents provided as requested. Disposition of Real Estate: Donated real estate will normally be sold as soon as possible, though CCF may make exceptions in specific situations. CCF reserves the right to sell donated real estate for what it deems to be an appropriate value. Gifts of Real Estate with Retained Life Tenancy. In considering gifts of a remainder interest in properties, CCF will follow the above guidelines for acceptance of fee title to real property, with the donor covering all costs. CCF reserves the right to accept or decline any gift of real estate and all gifts must be approved by the Board. Any national banking association may make real estate loans, subject to the law set forth at 12 USC 371 and 12 CFR 34.http://www.occ.treas.gov/handbook/RELoans1.pdf. The bank must also establish a policy that determines: The maximum amount that may be loaned on a given loan. The maximum aggregate amount that may be loaned in a given category. The degree of risk inherent in a real estate loan depends on the loan amount, the interest rate, and other special terms. Appraisals are professional judgments of the present and/or future value of the real property. As the property increases in age, both replacement cost and depreciation become more difficult to estimate. Many banks have incurred significant loan losses and large amounts of other real estate owned for placing too much or sole reliance on the appraisal. The bank’s real estate loan policy should ensure that loans are granted with the reasonable probability that the debtor will be able and willing to meet the payment terms. Lenders should ensure that real estate offered as collateral is not affected by the presence of hazardous materials. When a mortgagee receives the rents or other profits generated by the property, it is not a mortgagee in possession unless control of the real estate is removed from the hands of the mortgagor. Historically, many banks have jeopardized their capital structures by granting ill-considered real estate mortgage loans. As with other forms of real estate lending, banks should adopt specific policies and procedures. The most convincing proof of the quality and soundness of a real estate mortgage loan is a favorable payment history. The regular payment history of real estate Whether you’re buying a house, selling one or starting a career in real estate, do your homework in WorldCat.http://www.oclc.org/worldcat/promote/wc_real_estate.pdf. Come visit our comprehensive collection of real estate-related resources or narrow your search to more specific areas of interest such as home loans. Whether you’re buying a house, selling one or starting a career in real estate, do your homework in WorldCat. Come visit our comprehensive collection of real estate-related resources or narrow your search to more specific areas of interest such as home loans. Whether you’re buying a house, selling one or starting a career in real estate, do your homework in WorldCat. Come visit our comprehensive collection of real estate-related resources or narrow your search to more specific areas of interest such as home loans. estate, do your homeworkstarting a career in real house, selling one or Whether you’re buying a in WorldCat. estate, do your homeworkstarting a career in real house, selling one or Whether you’re buying a in WorldCat. estate, do your homeworkstarting a career in real house, selling one or Whether you’re buying a in WorldCat. estate, do your homeworkstarting a career in real house, selling one or Whether you’re buying a in WorldCat. estate, do your homeworkstarting a career in real house, selling one or Whether you’re buying a And it can be hard to know what all the specialized real estate terminology refers to-what's PMI? Lucky for you, [INSERT LIBRARY NAME] has a host of information on all aspects of real estate transactions. If you're a real estate professional, there are resources to help you grow your business. We have articles on loans, archives of We strongly encourage all program participants to register in advance.http://www.pcc.edu/career/documents/real-estate.pdf. Course Completion Awards will be issued in class only to students whose names appear on the PCC class roster or who have official proof of registration. In addition, we make cancella - tion decisions based on minimum enrollments. Let PCC help keep your real estate training current and advance your career! Whether you are an accountant, tax professional, home inspector, insurance producer, electrician, real estate broker or appraiser, PCC is your ticket to continuing education in your profession. Please contact us at 503-731-6620 for information on whether a course is approved for real estate appraisers through the Appraiser Certification and Licensure Boards. An overview for the newer investor and those ready to get started with their first real estate investment. CEU 9270 Advanced Real Estate Investing, 0.3 Cr. Advanced education for the real estate investor, agent or broker who wants to improve knowledge or ownership position. Taught by a master home inspector with AMI, these courses are also appropriate for continuing education for real estate brokers. Estate & Mortgage Market, 0.6 Cr. Gain success skills to build and promote your work in the real estate and mortgage markets. Learn mediation skills that positively solve conflict, with emphasis in the areas of real estate sales and mortgage financing. Estate Market, 0.2 Cr. Small business skills to keep your real estate or mort-gage work well organized, efficient and professional. The Financial Crimes Enforcement Network (FinCEN) recently conducted a study of Suspicious Activity Reports (SARs) filed with FinCEN over a 10-year period that involved suspected money laundering and related illicit financial activity in the commercial real estate sector.http://www.fincen.gov/commercial_real_estate_assessment_final.pdf. This report focuses on certain trends in the reporting of suspicious activity in key businesses and professions in the commercial real estate sector. A random sampling of Suspicious Activity Reports describing commercial real estate transactions revealed that property management, real estate investment, realty, and real estate development companies were the most commonly reported entities associated with money laundering and related illicit activity. Professions that customarily collect fees in real estate transactions, such as appraisers, inspectors, surveyors, and attorneys, were reported as primary subjects with less frequency and, therefore, are not listed in the tables that follow. Since 2003, the trend line in suspicious activity reporting associated with potential commercial real estate-related money laundering has risen steeply. The increase is likely attributable to the steep decline in interest rate charges on real estate loans, which occurred contemporaneously with the increase in filings.2 It remains to be seen whether this trend in relevant suspicious activity reporting reverses as rates on real estate loans rise and the real estate FinCEN used a Bank Secrecy Act (BSA) database analysis tool to obtain SARs of all types filed during the period January 1, 1996 through August 31, 2006, with narratives containing one or | ||
