Section 876 IAC 2-14-1 - Introduction to real estate financeAuthority: IC 25-34.1-2-5
Affected: IC 25-34.1-5
Sec. 1.
(a) The competency and instructional level for scope and purpose of real estate financing is Level 1. (b) The competency and instructional level for subdivision (1) is Level 2. The competency and instructional level for subdivisions (2) through (3) is Level 1. The following are concepts of historical development of real estate financing (an overview): (1) English and American mortgage concepts and practices including the following: (A) Definitions of basic terms: mortgage, mortgagor/mortgagee, deed of trust, trustee, beneficiary, pledge, security, collateral, etc.(B) Title theory versus lien theory.(C) Right (equity) of redemption.(D) Foreclosure and statutory redemption period.(2) Predepression real estate financing.(3) The Depression era including the following: (A) General economic conditions and effect on real estate market (especially the housing market).(B) Government intervention as follows: (i) Federal Home Loan Bank.(ii) Home Owner's Loan Corporation.(iii) Federal Housing Administration (FHA).(iv) Federal Deposit Insurance Corporation (FDIC) and Federal Savings and Loan Insurance Corporation (FSLIC).(v) Federal National Mortgage Association (FNMA).(4) The post World War II period including the following: (A) Growth of the real estate market.(B) Role of the FHA and the Veterans Administration (VA).(5) The real estate boom of the 1970s: (A) Effect of the post World War II "baby boom" on demand for housing.(B) Effect of increase in the number of two (2) income families and the Equal Credit Opportunity Act (ECOA) on housing demand and ability to borrow.(C) Effect of inflation on the housing market.(D) Effect of disintermediation, savings and interest rate problems.(6) The early 1980s, current practices and trends including the following: (A) A period of instability and change.(B) New financing practices.(c) The competency and instructional level for subdivisions (1) through (2) is Level 1. The following are concepts of real estate financing and the monetary system (an overview): (1) Financial markets, basic operation including the following: (A) The money market (short-term funds market).(B) The capital market (long-term funds market) as follows: (i) The mortgage market. (Note: covered in more depth under section 2 of this rule.)(ii) The bond and securities markets.(2) The role of the Federal Reserve System including the following: (C) Effect of Federal Reserve policies on availability of mortgage funds and mortgage interest rates.(3) The role of the Federal Home Loan Bank board.Indiana Real Estate Commission; 876 IAC 2-14-1; filed Dec 1, 1989, 5:00 p.m.: 13 IR 667; readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; readopted filed Jul 19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA