Section 876 IAC 2-14-2 - Sources of mortgage funds; primary mortgage marketAuthority: IC 25-34.1-2-5
Affected: IC 25-34.1-5
Sec. 2.
(a) The competency and instructional level for subdivisions (1) through (10) is Level 2. The following are concepts of direct sources, mortgage lenders (Explain the role of each in providing various types of mortgage loans on various types of properties.): (1) Savings and loan associations. (S&L's are the largest single source of mortgage funds, especially for residential loans.)(3) Mutual savings banks.(4) Mortgage companies (mortgage bankers) (usually originate loans with funds provided by other institutions, such as life insurance companies or parent banks, but some also originate loans with own funds).(5) Real estate investment trusts (REIT's).(6) Credit unions (federal and state).(7) Federal government agencies including the following: (A) Federal Land Bank (originally a government agency, but now owned by the system of local Federal Land Bank Associations, which are cooperative credit organizations).(B) Farmers Home Administration (FmHA).(8) State housing finance agencies.(9) Mortgage brokers. (Actually, mortgage bankers are not "lenders", but merely "intermediaries" who bring borrowers and lenders together and thus are involved in originating mortgage loans.)(10) Individual lenders, i.e., sellers.(b) The competency and instructional level for subdivisions (1) through (6) is Level 2. The following are concepts of indirect sources (mortgage investors) (Explain the role of each in providi ng funds for mortgage loans on various types of properties.): (1) Life insurance companies. (Some direct loans made, but most are originated through mortgage companies, mortgage brokers, or other lenders using life insurance company funds. The lender "sells" mortgages to the life insurance company.)(2) Pension, trust, and endowment funds.(3) Charitable foundations.(4) Participants in the secondary mortgage market. (Covered in detail in section 3 of this rule.)(5) State and municipal bonds.(6) Individual investors (through purchase of mortgage-backed securities).Indiana Real Estate Commission; 876 IAC 2-14-2; 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