DOCSLIB.ORG

Mortgages and Foreclosures Basics

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text

Load more

Chapter 7 1 Financing AlaskaRealEstateSchool.com Chapter 7 Financing Correspondence Course Information Please read and become familiar with this information prior to the class date. This part of the class will be taken correspondence. You will be required to take a test on this information and the test must be returned prior to taking the classroom portion of the course. The remainder of the class may be taken in the classroom or by correspondence. If you have registered for the correspondence course, the test as well as the evaluation sheet must returned for grading and issuance of you graduation certificate. You may take the tests all at once or one chapter at a time. The test may be taken open book and the answer sheet must be sent back to: Email to [email protected] Or Fax to 866-659-8458 Or Mail to: AlaskaRealEstateSchool.com Attn: Denny Wood PO Box 241727 Anchorage, Alaska 99524-1727 copyright 2013 dwood Chapter 7 2 Financing AlaskaRealEstateSchool.com Mortgages and Foreclosures Basics A mortgage is a transfer of an interest in real estate as security for the repayment of a loan. A typical mortgage transaction involves a home purchaser borrowing money from a lender and entering into a written agreement with the lender, so that the real estate is collateral for the loan. If the homeowner defaults on the loan, the lender is entitled to foreclose on the real estate and have it sold to reduce the debt. Depending on the terms of the agreement, the lender may then be entitled to pursue the homeowner for payment of any deficiency between the real estate sale proceeds and the debt owed. The Mortgage Loan Process A borrower (or mortgagor) obtains a mortgage loan through a process of application and commitment. The borrower initiates the process by submitting an application to the lender (or mortgagee) and in some cases paying a nonrefundable fee. The lender conducts a risk evaluation to determine whether a mortgage loan will be granted. In the risk analysis, the lender evaluates both the borrower's financial position and the value of the real estate. If the lender determines the risk to be acceptable, the lender will issue a loan commitment detailing the loan amount, repayment terms, interest rate, and other pertinent conditions. Because the commitment will normally contain terms and conditions not found in the loan application, it typically constitutes a counteroffer to make a loan. When the borrower accepts the commitment, a binding contract for a mortgage loan is created. Residential mortgage loans usually bear interest at a fixed annual percentage rate over a period of fifteen or thirty years. The interest rate is determined by the prevailing market conditions at the time the loan is made. A lender may increase its yield beyond the stated interest rate by requiring the borrower to pay "points" at the time the loan is made. One point equals one percent of the loan amount. It may also be beneficial for the borrower to pay points in order to reduce the interest rate over the term of the loan. Mortgages: Key Phrases Adjustable rate mortgages (ARMs) are also common. Under an ARM, the interest rate rises and falls over the term of the loan in accordance with prevailing market conditions. The parties may agree to hedge against extreme interest rate fluctuations by establishing ceiling and floor limits. A balloon mortgage, less common but not unheard of in the residential mortgage market, exists when a substantial payment is required at the end of the term of the loan to cover the unamortized loan principal. Default occurs when the mortgagor fails to perform an obligation secured by the mortgage. The most common event of default is the mortgagor's failure to timely pay monthly principal and interest installments. A mortgagor's failure to insure the property or to pay property taxes can also constitute copyright 2013 dwood Chapter 7 3 Financing AlaskaRealEstateSchool.com an event of default. However, the use of escrow accounts has reduced the frequency with which this type of default occurs. Finally, construction difficulties or physical damage or destruction to the property by the mortgagor, constituting "waste," can also be considered an event of default. Most mortgages and underlying promissory notes contain an acceleration clause providing that the occurrence of an event of default accelerates the debt, making the entire debt immediately due and payable. Most residential mortgage lenders are required to provide that the mortgagee must give the mortgagor notice of impending acceleration and the opportunity to avoid it by curing the default. In most states, the commencement of a foreclosure proceeding constitutes notice of impending acceleration. Mortgages also often provide for acceleration in the event the mortgagor transfers any interest in the mortgaged property without the mortgagee's consent. These clauses, referred to as due-on-sale clauses, protect the mortgagee from being forced to do business with persons other than the mortgagor with whom the mortgagee initially contracted. When a mortgagor desires to transfer the mortgaged property, the mortgagee has the option to either accelerate the debt or consent to the transaction conditioned on the grantee's assumption of the mortgage and payment obligation, possibly also with a transfer fee requirement and/or an increased interest rate. Foreclosure Proceedings In general, the mortgagor can foreclose on the mortgaged property any time after an event of default. There are two types of foreclosure proceedings: foreclosure by judicial sale and foreclosure by power of sale. Foreclosure by judicial sale is available in all states, and is the required foreclosure method in a number of jurisdictions. A foreclosure by judicial sale is subject to court supervision and is not final until the court confirms the sale. Foreclosure by power of sale serves the same purpose as foreclosure by judicial sale. However, statutes delineating detailed notice and sale procedures replace court supervision. If the foreclosure sale proceeds are insufficient to satisfy the underlying debt, the mortgagee can usually obtain a deficiency judgment against the mortgagor for the deficiency. Likewise, if the foreclosure sale results in a surplus, the mortgagor is usually entitled to seek payment from the mortgagee for the amount of the surplus. In either type of foreclosure sale, it is important to conduct the foreclosure in accordance with the applicable law so that the mortgagor's redemption rights are curtailed and whoever purchases the property at the foreclosure sale receives clear and unhindered title thereto. copyright 2013 dwood Chapter 7 4 Financing AlaskaRealEstateSchool.com Mortgage Basics FAQ Find the best loan option for you, plus tips on how to afford a mortgage and down payment. Where should I shop for home loans or mortgages? Many entities, including banks, credit unions, savings and loans, insurance companies, and mortgage bankers make home loans. Lenders and terms change frequently as new companies appear, old ones merge, and market conditions fluctuate. To get the best deal, it's a good idea to compare loans and fees with at least a half a dozen lenders -- or to get the help of an experienced mortgage broker, who can help you sift through the latest offerings. Because many types of home loans are standardized to comply with rules established by the Federal National Mortgage Association (Fannie Mae) and other quasi-governmental corporations that purchase loans from lenders, comparison shopping is not difficult. However, you'll need to decide what type of mortgage you're interested in first, whether it's a fixed rate, adjustable rate, or one of the many hybrids available now. Once you've narrowed your sights to a particular size, type, and length of mortgage -- such as a 30-year fixed term mortgage for $300,000 -- you'll be ready to compare apples to apples. Mortgage rates and fees are usually published in the real estate sections of metropolitan newspapers, and on online mortgage websites. It's wise to do some advance research even if you decide to work with a loan broker, so that you'll have a sense of the market. Some loan brokers charge the consumer directly, others collect a fee from the lender (though this ultimately adds a little to what you pay for your mortgage). Be sure to check out government-subsidized mortgages, which offer both no-down-payment and low- down-payment plans. Also, ask banks and other private lenders about any "first-time buyer" programs that offer low-down-payment plans and flexible qualifying guidelines to low- and moderate-income buyers with good credit. Finally, don't forget private sources of mortgage money -- parents, other relatives, friends, or even the seller of the house you want to buy. Borrowing money privately is usually the most cost-efficient mortgage of all. And its popularity is increasing as investors turn to real estate as a high-appreciation place to put their money. What are low down payment options, for buyers who can't afford a 20% down payment? Assuming you can afford (and qualify for) high monthly mortgage payments and have a high credit score, you should be able to find a low (5% to 15%) down payment loan. However, you may have to pay a higher interest rate and loan fees (points) than someone making a larger down payment. copyright 2013 dwood Chapter 7 5 Financing AlaskaRealEstateSchool.com Also, if you put down less than 20%, you may have to either pay for private mortgage insurance (PMI) or, to avoid PMI, take out two separate loans (a first mortgage and a second mortgage). What is private mortgage insurance? Private mortgage insurance (PMI) policies are designed to reimburse a mortgage lender up to a certain amount if you default on your loan and your house isn't worth enough to entirely repay the lender through a foreclosure sale.
Recommended publications
  • Community Reinvestment Act Regulations

    Community Reinvestment Act Regulations

    DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Parts 25 and 195 [Docket ID OCC-2021-0014] RIN 1557–AF12 Community Reinvestment Act Regulations AGENCY: Office of the Comptroller of the Currency, Treasury. ACTION: Notice of proposed rulemaking. SUMMARY: The Comptroller of the Currency proposes to replace the current Community Reinvestment Act rule with rules based on the 1995 Community Reinvestment Act (CRA) rules, as revised, issued by the Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), and Federal Deposit Insurance Corporation (FDIC). The proposal would replace the existing rule in 12 CFR part 25 and reinstate 12 CFR part 195 (for savings associations). Such action would effectively rescind the CRA final rule published by the Office of the Comptroller of the Currency on June 5, 2020, and facilitate the issuance of joint CRA rules with the Board and FDIC. DATES: Comments must be received on or before October 29, 2021. ADDRESSES: Commenters are encouraged to submit comments through the Federal eRulemaking Portal. Please use the title “Community Reinvestment Act Regulations” to facilitate the organization and distribution of the comments. You may submit comments by any of the following methods: 1 Federal eRulemaking Portal – Regulations.gov: Go to https://regulations.gov/. Enter “Docket ID OCC-2021-0014” in the Search Box and click “Search.” Public comments can be submitted via the “Comment” box below the displayed document information or by clicking on the document title and then clicking the “Comment” box on the top-left side of the screen.
  • Website Content on RE Financing Terms

    Website Content on RE Financing Terms

    CUTTING THROUGH THE JARGON: A Basic Primer on Commonly Used Terms in Commercial Real Estate Mortgage Transactions. Similar to may other industries, the world of commercial real estate has a language all its own, including some strange and confusing often bandied about in the course of a transaction. Getting a handle on these terms may help to level the playing field with the brokers, bankers, attorneys and other professionals who frequently resort to the trade lingo. To that end we have provided a list of some of commonly used vernacular and simple accompanying explanations. While this list is by no means exhaustive, we thought that this list should provide the reader with a basic introduction to the dialogue and hopefully take some of the seeming complexity of the world of commercial mortgages. Adjustable Rate Loan (also called a floating rate loan or a variable rate loan) refers to a loan that does not have a fixed rate of interest over the life of the loan. Such a loan typically uses an index and some base rate for establishing the interest rate for each relevant period. One of the most common rates to use as the basis for applying interest rates is the London Inter-bank Offered Rate, or LIBOR (the rates at which large banks lend to each other). Bad Boy Carve-outs (to non-recourse loans) are exceptions within the loan documents that result in full-recourse liability to the borrower and the guarantor when certain "bad-boy" behaviors exist. Examples of these "bad-boy" behaviors are (i) fraud or intentional misrepresentation by the borrower;
  • The Federal Reserve Act of 1913

    The Federal Reserve Act of 1913

    THE FEDERAL RESERVE ACT OF 1913 HISTORY AND DIGEST by V. GILMORE IDEN PUBLISHED BY THE NATIONAL BANK NEWS PHILADELPHIA Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Copyright, 1914 by Ccrtttiois Bator Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis History of Federal Reserve Act History N MONDAY, October 21, 1907, the Na­ O tional Bank of Commerce of New York City announced its refusal to clear for the Knickerbocker Trust Company of the same city. The trust company had deposits amounting to $62,000,000. The next day, following a run of three hours, the Knickerbocker Trust Company paid out $8,000,000 and then suspended. One immediate result was that banks, acting independently, held on tight to the cash they had in their vaults, and money went to a premium. Ac­ cording to the experts who investigated the situation, this panic was purely a bankers’ panic and due entirely to our system of banking, which bases the protection of the financial solidity of the country upon the individual reserves of banks. In the case of a stress, such as in 1907, the banks fail to act as a whole, their first consideration being the protec­ tion of their own reserves. PAGE 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis History of Federal Reserve Act The conditions surrounding previous panics were entirely different.
  • Is Paper Money Just Paper Money? Experimentation and Variation in the Paper Monies Issued by the American Colonies from 1690 to 1775

    Is Paper Money Just Paper Money? Experimentation and Variation in the Paper Monies Issued by the American Colonies from 1690 to 1775

    NBER WORKING PAPER SERIES IS PAPER MONEY JUST PAPER MONEY? EXPERIMENTATION AND VARIATION IN THE PAPER MONIES ISSUED BY THE AMERICAN COLONIES FROM 1690 TO 1775 Farley Grubb Working Paper 17997 http://www.nber.org/papers/w17997 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 April 2012 Previously circulated as 'Is Paper Money Just Paper Money? Experimentation and Local Variation in the Fiat Paper Monies Issued by the Colonial Governments of British North America, 1690-1775: Part I." A preliminary version of this paper was presented at the Conference on "De-Teleologising History of Money and Its Theory," Japan Society for the Promotion of Science Research–Project 22330102, University of Tokyo, 14-16 February 2012. The author thanks the participants of this conference and Akinobu Kuroda for helpful comments. Tracy McQueen provided editorial assistance. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer- reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2012 by Farley Grubb. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Is Paper Money Just Paper Money? Experimentation and Variation in the Paper Monies Issued by the American Colonies from 1690 to 1775 Farley Grubb NBER Working Paper No. 17997 April 2012, Revised April 2015 JEL No.
  • Report on the Legal Protection of Banknotes in the European Union Member States

    Report on the Legal Protection of Banknotes in the European Union Member States

    ECB EZB EKT BCE EKP REPORT ON THE LEGAL PROTECTION OF BANKNOTES IN THE EUROPEAN UNION MEMBER STATES November 1999 REPORT ON THE LEGAL PROTECTION OF BANKNOTES IN THE EUROPEAN UNION MEMBER STATES November 1999 © European Central Bank, 1999 Address Kaiserstrasse 29 D-60311 Frankfurt am Main Germany Postal address Postfach 16 03 19 D-60066 Frankfurt am Main Germany Telephone +49 69 1344 0 Internet http://www.ecb.int Fax +49 69 1344 6000 Telex 411 144 ecb d All rights reserved. Reproduction for educational and non-commercial purposes is permitted provided that the source is acknowledged. The views expressed in this paper are those of the author and do not necessarily reflect those of the European Central Bank. ISBN 92-9181-051-7 2 ECB Report on the legal protection of banknotes • November 1999 Contents EXECUTIVE SUMMARY 5 I. LEGAL PROTECTION OF EURO BANKNOTES 7 A. THE CRIMINAL APPROACH: COUNTERFEITING 7 1. The legal situation in the Member States 7 2. The desired legal situation 9 3. The risk of increased counterfeit activity 11 4. The possibilities of prevention – co-operation and co-ordination 12 5. The harmonisation of sanctions 18 6. The detention of counterfeit banknotes 18 B. THE CIVIL APPROACH: COPYRIGHT PROTECTION (COMPLEMENTARY TOOLS AND SETTING CRITERIA FOR LEGAL REPRODUCTIONS) 20 1. Copyright protection for euro banknotes 20 2. The use of the © sign on euro banknotes 22 3. The enforcement of copyright 23 4. The reproduction of euro banknotes 24 C. THE MATERIAL APPROACH: ANTI-COPYING DEVICES FOR REPRODUCTION EQUIPMENT 26 II. LEGAL ASPECTS OF FIDUCIARY CIRCULATION 28 A.
  • July 22, 2011 Jennifer J. Johnson Secretary Board of Governors of The

    July 22, 2011 Jennifer J. Johnson Secretary Board of Governors of The

    National Association of Federal Credit Unions 3 1 3 8 10th Street North Arlington, V A 2 2 2 0 1 - 2 1 4 9 July 22, 2011 Jennifer J. Johnson Secretary Board of Governors of the Federal Reserve System 20th Street and Constitution Avenue, N W. Washington, DC 2 0 5 5 1 RE: Docket No. R-1417 and RIN No. AD 7100-AD75 Dear Ms. Johnson: On behalf of the National Association of Federal Credit Unions (NAFCU), the only trade association that exclusively represents the nation's federal credit unions, I am writing to provide NAFCU's comments on the Federal Reserve Board's (the Board) proposed changes to Regulation Z that impose standards on mortgage lenders to ensure that consumers have the ability to repay their mortgage. NAFCU is supportive of the Board's efforts to ensure that consumers are not placed in mortgage loans that they cannot afford. Indeed, credit unions and virtually any other responsible lender already comply with most - if not all - of the requirements the Board proposes for "qualified mortgages." NAFCU does remain concerned about the regulatory burden this proposal will create. In regards to this proposal NAFCU believes: • Credit unions that make qualified mortgages should have a clear safe harbor under the rule • Disclosure of compensation arrangements are counterproductive to providing consumers with meaningful information • The proposed rule is overly complex in many areas. In addition, NAFCU would like to note that some of our members operate quite successful, narrowly tailored loan programs with little or no verification of income. Many aspects of this rule will require such institutions to make a sea change in how they operate their lending programs, when there will be little benefit to credit union members.
  • Predatory Mortgage Loans

    Predatory Mortgage Loans

    CONSUMER Information for Advocates Representing Older Adults CONCERNS National Consumer Law Center® Helping Elderly Homeowners Victimized by Predatory Mortgage Loans Equity-rich, cash poor, elderly homeowners are an attractive target for unscrupulous mortgage lenders. Many elderly homeowners are on fixed or limited incomes, yet need access to credit to pay for home repairs, medical care, property or municipal taxes, and other expenses. The equity they have amassed in their home may be their primary or only financial asset. Predatory lenders seek to capitalize on elders’ need for cash by offer- ing “easy” credit and loans packed with high interest rates, excessive fees and costs, credit insurance, balloon payments and other outrageous terms. Deceptive lending practices, including those attributable to home improvement scams, are among the most frequent problems experienced by financially distressed elderly Americans seeking legal assistance. This is particularly true of minority homeowners who lack access to traditional banking services and rely disproportionately on finance compa- nies and other less regulated lenders. But there are steps advocates can take to assist vic- tims of predatory mortgage loans. • A Few Examples One 70 year old woman obtained a 15-year mortgage in the amount of $54,000 at a rate of 12.85%. Paying $596 a month, she will still be left with a final balloon payment of nearly $48,000 in 2011, when she will be 83 years old. Another 68 year old woman took out a mortgage on her home in the amount of $20,334 in the early 1990s. Her loan was refinanced six times in as many years, bringing the final loan amount to nearly $55,000.
  • OIG-10-024 Audit of the Office of Comptroller of The

    OIG-10-024 Audit of the Office of Comptroller of The

    Audit Report OIG-10-024 Audit of the Office of the Comptroller of the Currency’s Fiscal Years 2009 and 2008 Financial Statements December 22, 2009 Office of Inspector General Department of the Treasury DEPARTMENT OF THE TREASURY WASHINGTON, D.C. 20220 OFFICE OF INSPECTOR GENERAL December 22, 2009 MEMORANDUM FOR JOHN C. DUGAN COMPTROLLER OF THE CURRENCY FROM: Michael Fitzgerald Director, Financial Audits SUBJECT: Audit of the Office of the Comptroller of the Currency’s Fiscal Years 2009 and 2008 Financial Statements I am pleased to transmit the attached audited Office of the Comptroller of the Currency (OCC) financial statements for fiscal years 2009 and 2008. Under a contract monitored by the Office of Inspector General, GKA, P.C. (GKA), an independent certified public accounting firm, performed an audit of the financial statements of OCC as of September 30, 2009 and 2008 and for the years then ended. The contract required that the audit be performed in accordance with generally accepted government auditing standards; applicable provisions of Office of Management and Budget Bulletin No. 07-04, Audit Requirements for Federal Financial Statements, as amended; and the GAO/PCIE Financial Audit Manual. The following reports, prepared by GKA, are incorporated in the attachment: • Independent Auditor’s Report on Financial Statements; • Independent Auditor’s Report on Internal Control over Financial Reporting; and • Independent Auditor’s Report on Compliance with Laws and Regulations In its audit of OCC’s financial statements, GKA found: • that the financial statements were fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America, • no matters involving internal control and its operations that are considered material weaknesses, and • no instances of reportable noncompliance with laws and regulations tested.
  • Anatomy of a Residential Mortgage Loan

    Anatomy of a Residential Mortgage Loan

    Anatomy of a Residential Mortgage Loan Jay L. Hack, Esq. Gallet Dreyer & Berkey, LLP [email protected] Supporting Materials 1. Seminar Outline 2. Shopping for a mortgage? What can you expect under federal rules? Consumer Financial Protection Bureau 3. Uniform Residential Loan Application Fannie Mae Form 1003 4. Commitment Disclosures and Procedures ‐ Part 38.4 of the General Regulations of the Superintendent of Financial Services 5. Note ‐ New York Fixed Rate – Fannie Mae Form 3233 6. Note ‐ Multistate Adjustable Rate – ARM 5‐1 – Fannie Mae Form 3501 7. Mortgage ‐ New York Single Family Fannie Mae/Freddie Mac Form 3033 8. Multistate Condominium Rider Fannie Mae/Freddie Mac Form 3140 ANATOMY OF A RESIDENTIAL MORTGAGE LOAN 1) INTRODUCTION a) What is a Residential Mortgage Loan? b) The note is the obligation c) The mortgage is the collateral for the note i) Lenders own NOTES that are collateralized by mortgages. ii) Whoever owns the NOTE owns the loan. d) Source of law i) Federal – applies generally to all residential lenders (1) Truth in Lending Act (2) Equal Credit Opportunity Act (3) Real Estate Settlement Procedures Act (4) Many other federal statutes of less significance ii) State – apples to lenders in NY except those benefitted by federal pre‐emption (national banks, federal savings banks, federal savings and loans, federal credit unions) (1) State licensing if not a bank or insurance company (Banking Law Article 12‐D) (2) Part 38 of the General Regulations of the Superintendent of Financial Services 2) WHO ARE THE LENDERS? a) Banks b) Insurance companies c) Subsidiaries of the above d) “Mortgage Bankers” – state licensed e) Private lenders f) Mortgage brokers (1) They don’t make loans (2) They can’t issue contractual promises (commitments) to make loans (a) More about commitments later.
  • Paper Money and Inflation in Colonial America

    Paper Money and Inflation in Colonial America

    Number 2015-06 ECONOMIC COMMENTARY May 13, 2015 Paper Money and Infl ation in Colonial America Owen F. Humpage Infl ation is often thought to be the result of excessive money creation—too many dollars chasing too few goods. While in principle this is true, in practice there can be a lot of leeway, so long as trust in the monetary authority’s ability to keep things under control remains high. The American colonists’ experience with paper money illustrates how and why this is so and offers lessons for the modern day. Money is a societal invention that reduces the costs of The Usefulness of Money engaging in economic exchange. By so doing, money allows Money reduces the cost of engaging in economic exchange individuals to specialize in what they do best, and specializa- primarily by solving the double-coincidence-of-wants prob- tion—as Adam Smith famously pointed out—increases a lem. Under barter, if you have an item to trade, you must nation’s standard of living. Absent money, we would all fi rst fi nd people who want it and then fi nd one among them have to barter, which is time consuming and wasteful. who has exactly what you desire. That is diffi cult enough, but suppose you needed that specifi c thing today and had If money is to do its job well, it must maintain a stable value nothing to exchange until later. Making things always re- in terms of the goods and services that it buys. Traditional- quires access to the goods necessary for their production ly, monies have kept their purchasing power by being made before the fi nal good is ready, but pure barter requires that of precious metals—notably gold, silver, and copper—that receipts and outlays occur at the same time.
  • The LOAN Procedure This Document Is an Individual Chapter from SAS/ETS® 13.2 User’S Guide

    The LOAN Procedure This Document Is an Individual Chapter from SAS/ETS® 13.2 User’S Guide

    SAS/ETS® 13.2 User’s Guide The LOAN Procedure This document is an individual chapter from SAS/ETS® 13.2 User’s Guide. The correct bibliographic citation for the complete manual is as follows: SAS Institute Inc. 2014. SAS/ETS® 13.2 User’s Guide. Cary, NC: SAS Institute Inc. Copyright © 2014, SAS Institute Inc., Cary, NC, USA All rights reserved. Produced in the United States of America. For a hard-copy book: No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, or otherwise, without the prior written permission of the publisher, SAS Institute Inc. For a Web download or e-book: Your use of this publication shall be governed by the terms established by the vendor at the time you acquire this publication. The scanning, uploading, and distribution of this book via the Internet or any other means without the permission of the publisher is illegal and punishable by law. Please purchase only authorized electronic editions and do not participate in or encourage electronic piracy of copyrighted materials. Your support of others’ rights is appreciated. U.S. Government License Rights; Restricted Rights: The Software and its documentation is commercial computer software developed at private expense and is provided with RESTRICTED RIGHTS to the United States Government. Use, duplication or disclosure of the Software by the United States Government is subject to the license terms of this Agreement pursuant to, as applicable, FAR 12.212, DFAR 227.7202-1(a), DFAR 227.7202-3(a) and DFAR 227.7202-4 and, to the extent required under U.S.
  • Major Banking Laws

    Major Banking Laws

    Major U.S. Banking Laws The most important laws that have affected the banking industry in the United States are listed below (in chronological order). • National Bank Act of 1864 (Chapter 106, 13 STAT. 99). Established a national banking system and the chartering of national banks. • Federal Reserve Act of 1913 (P.L. 63-43, 38 STAT. 251, 12 USC 221). Established the Federal Reserve System as the central banking system of the U.S. • The McFadden Act of 1927 (P.L. 69-639, 44 STAT. 1224). Amended the National Banking Laws and the Federal Reserve Act and prohibited interstate banking. • Banking Act of 1933 (P.L. 73-66, 48 STAT. 162). Also known as the Glass-Steagall Act. Established the FDIC as a temporary agency. Separated commercial banking from investment banking, establishing them as separate lines of commerce. • Banking Act of 1935 (P.L. 74-305, 49 STAT. 684). Established the FDIC as a permanent agency of the government. It extended the branching provisions of the Banking Act of 1933 to FDIC non-members and required state member banks to obtain Federal Reserve Board approval of new branches. • Soldiers and Sailors Civil Relief Act of 1940 (50 App. U.S.C. § 501). The Soldiers' and Sailors' Civil Relief Act of 1940 (SSCRA), as amended, was passed by Congress to provide protection for individuals entering or called to active duty in the military service. It is intended to postpone or suspend certain civil obligations to enable servicemembers to devote full attention to duty. The Act applies to the United States, the states, the District of Columbia, all U.S.