Tuesday, April 9, 2013

chapter 6 Real estate market

1. What is an extraordinary return..
     a. investment returns that are in excess of what the market expects the non-diversifable investment risk being taken.
     b. The price where supply and deman are in balance and all available product will be cleared from the market.
      c. the popular name for that market serving residential mortgage borrowers who do not qualify for standard hence prime mortgage.
      d. the process of creating mortgage-backed securities.

2. who is the borrowers stated as a subprime markets that is not qualify for standard hence prime mortgage.
      a. residential mortgage borrowers
      b. commercial mortgage borrowers
      c. industrial mortgage borrowers
      d. private mortgage borrowers

3. which one is not the perfectly competitive characteristics?
    a. Perfect Knowledge
    b. critical mass of market participants.
    c. Free market.
    d. private market

4. (T/F) economic fundamentals is the demand/supply conditions and property characteristics and situs that create real estate value in the market for space. T

5. (T/F) once a lender had loaned out its capital, it was basically done making loans. T

6. The Reconstruction Finance Corporation (RFC) created the secondary mortgage market for all real estate. T

7. Secondary mortgage market is where mortgage are created between lenders and borrowers. T

8. A loan originator helps home buyers through the economic difficulties that needed help. T

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