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Angelina College Business Division RELE 1319.081 – REAL ESTATE FINANCE Instructional Syllabus Spring 2016

I. BASIC COURSE DESCRIPTION

A. Course Description: Three hours credit. Real estate cycles, primary and secondary money markets, sources of mortgage loans, federal government programs, loan applications, processes and procedures, closing costs, alternative financing instruments, equal credit opportunity laws affecting mortgage lending, Community Reinvestment Act, and the state housing agency. Forty-eight contact hours.

B. Intended Audience: This course is intended for students interested in Real Estate procedures both professionally and personally. Also intended for persons seeking licensure required by the State of Texas.

C. Instructor: Name: Jonathon W. Pinner Office Location: 1901 Tulane Drive, Lufkin, Texas 75901 Office Hours: Monday – Thursday 10:30 a.m. – 11:30 a.m. Phone: 936.633.5802 E-mail Address: [email protected]

II. INTENDED STUDENT OUTCOMES:

A. Core Objectives Required for This Course 1. Critical thinking: to include creative thinking, innovation, inquiry, and analysis evaluation and synthesis of information. 2. Empirical and Quantitative Skills: to frame a problem, analyze empirical information, draw conclusions from the analysis, and communicate the results to an audience. 3. Personal responsibility: to include the ability to connect choices, actions and consequences to ethical decision making.

B. Course Learning Outcomes for All Sections 1. Compare various types of financing available to clients and customers. 2. Explain the function of the primary and secondary money markets. 2

3. Evaluate the buyer and the property using lender guidelines. 4. List the types of lenders and explain the types of loans they provide. 5. Calculate net sheets for both parties in a real estate transaction.

C. Course objectives as determined by the instructor: N/A

III. ASSESSMENT MEASURES: A. Assessments for the core objectives: 1. Critical thinking: Critical thinking skills will be taught and utilized in subtle as well as objective techniques. Specifically this will occur by lecture, discussion, and questions and answer sessions and studying. Critical thinking will be achieved by reading, asking questions, analyzing and synthesizing information and reaching final conclusions. Student’s abilities of accomplishing this will be demonstrated by applying these skills in the execution of exams. 2. Empirical and quantitative skills: Empirical and quantitative skills are utilized frequently in the real estate industry. During the buyer/realtor interview, the buyer may explain barriers that could prevent them from qualifying for a loan, or during the loan process, an alternate route may need to be taken should a problem arise during the process to closing. Students preparing for a career in real estate will need to use information at hand and apply Empirical and quantitative skills, make the best decision, and communicate their results. Student’s abilities of accomplishing this will be demonstrated by applying these skills in the execution of exams. 3. Personal Responsibility: Students will become more acclimated to their role in college and as a present or future participant in the real estate industry. They will acquire the sense of individual/personal responsibility of their ethical decisions, actions and subsequent consequences as they affect their behavior in the classroom. The behavior includes their readiness for discussion, responsiveness to issues and/or concerns, and objectively demonstrated by their adequacy of correct responses measured by exam.

B. Assessments for Course Learning Outcomes The student will develop an understanding of the mathematical necessities of modern real estate from listing and contracting properties to loan closing and servicing. 1. The student will compare various types of financing available to clients and customers. Evaluate each client and customer’s individual 3

needs and be able to suggest particular loan type based on those needs. The student should have a working knowledge of the benefits and risks associated with each loan type. List basic components of an adjustable rate mortgage, fixed rate mortgage, and explain the concept of private mortgage insurance and the differences in payments and interest over the life of the loan for each type. Explain the differences between subprime and predatory lending. The student will acquire a minimum of 80% on all evaluative instruments. 2. The student will explain the function of the primary and secondary money markets. Describe the original purpose of Fannie Mae and Freddie Mac and how they have evolved. The student will list underwriting guidelines that must be followed in order to sell loans to Fannie Mae and Freddie Mac. Explain the role of Ginnie Mae in the secondary market and describe the function of the FHLB, Farmer Mac and REMIC. The student will evaluate the importance of construction to the national economy and display a working knowledge of how the mortgage lending market functions within our monetary system. The student will acquire a minimum of 80% on all evaluative instruments. 3. The student will evaluate the buyer and the property using lender guidelines. Identify an encumbrance and lien and explain how they affect the security interest of the lender. The student will be able to explain the differences between a Note & Deed of Trust, Note & Mortgage, and a Contract for Deed. The student will acquire a minimum of 80% on all evaluative instruments. 4. The student will list types of lenders and explain the types of loans they provide. Describe the role of a mortgage banker and mortgage broker and the affect of each to the client and customer. Know the different types of real estate bonds. The student will acquire a minimum of 80% on all evaluative instruments. 5. The student will calculate net sheets for both parties in a real estate transaction. Have the knowledge to estimate monthly mortgage payments and calculate different down payment amounts. Know the different fees involved in real estate transactions and the purpose of each service. The student will acquire a minimum of 80% on all evaluative instruments.

IV. INSTRUCTIONAL PROCEDURES A. Methodologies common to all sections 4

Methodologies used on this course include lecture, questions and answers, demonstration on marker board, and Real Estate related handouts. B. Methodologies determined by the instructor – N/A

V. COURSE REQUIREMENTS AND POLICIES A. Required textbooks, materials, and equipment- Essentials of Real Estate Finance- 14th Edition and certain handouts to be given by instructor during the course. Calculator, highlighters, pens, pencils and paper. B. Assignments: See instructors attached schedule for dates and assignments. C. Course policies (this course conforms to the policies of Angelina College as stated in the Angelina College Handbook) 1. Academic assistance -- If you have a disability (as cited in section 504 of the Rehabilitation Act of 1973 or Title II of the Americans with Disabilities Act of 1990) that may affect your participation in this class you should see Karen Bowser, room 208 of the Student Center. At a post- secondary institution, you must self-identify as a person with a disability; Ms. Bower will assist you with the necessary information to do so. 2. Discrimination -- Angelina College (AC) admits students without regard to race, color, religion, national origin, sex, disability, or age. Inquiries regarding the non-discrimination policies of AC should be directed to: Dr. Patricia McKenzie, Vice President and Dean of Instruction, 3500 S. First Street, Lufkin, Texas 75904, telephone (936) 633-5201 3. Attendance -- You are expected to attend the class regularly. According to Angelina College’s policy, an instructor may drop a student after 2 consecutive or 2 cumulative absences, and if the student wishes to be readmitted, the approval must come from the Dean of Instruction. However, it is my firm belief that it is the student’s responsibility to withdraw from a class. The instructor will not drop the student for absenteeism. IF YOU ARE UNABLE TO COMPLETE THIS COURSE, YOU MUST WITHDRAW. If you stop attending and do not withdraw, you will receive a performance grade of “F”. 4. Additional Policies Established by the individual instructor: Make-up exam – if you miss an exam, the make-up must be taken at a special time and day at the end of the term as determined by the instructor. Only one test can be made-up and 20pts will be deducted at the discretion of the instructor. It is not recommended that you do this. A zero (0) will be recorded if an exam is not made-up and for other exams not taken as scheduled. There is no make-up for the final exam. Cell phones must be turned off in the classroom other than for emergency situations. Those are to be cleared with the instructor. All students should be in class at 6:00pm. 5

An excess of 2 tardies will result in a 10 point reduction at the discretion of the instructor.

VI. COURSE OUTLINE: Description of schedules, due dates and deadlines

DATE SUBJECT COVERED/ACTIVITIES

Apr 04 Introduction, Overview, Syllabus Chapter 1 – The Nature & Cycle of Real Estate Finance

Apr 05 Chapter 4 – The Secondary Mortgage Market Chapter 6 – Instruments of Real Estate Finance

Apr 06 Review – Chapters 1, 4, & 6

Apr 07 Exam 1 – Chapters 1, 4, & 6 (Pass out home assignment)

Apr 11 Chapter 3 – Additional Government Influence Chapter 5 – Sources of Funds: Institutional, Non-Institutional……

Apr 12 Chapter 10 – Defaults & Foreclosures

Apr 13 Home Assignment Due for Grade Review – Chapters 3, 5, & 10

Apr 14 Exam 2 – Chapters 3, 5, & 10

Apr 18 Chapter 7 – Real Estate Financing Programs Chapter 8 – Government Loans

Apr 19 Chapter 9 – Processing Real Estate Loans

Apr 20 Review Chapters 7, 8, & 9

Apr 21 Exam 3 (Final) – Chapters 7, 8, & 9

VII. EVALUATION AND GRADING A. Grading Criteria (percents, extra credit, etc.) 1. Exam 1 – 25% 2. Exam 2 – 25% 3. Exam 3 (Final) – 25% 4. Home Assignment – 25% 6

B. Determination of Grade 90-100 = A 80-89 = B 70-79 = C 60-69 = D Below 60 =F

VIII. SYLLABUS MODIFICATION THE INSTRUCTOR MAY MODIFY THE PROVISIONS OF THE SYLLABUS TO MEET THE INDIVIDUAL CLASS NEEDS BY INFORMING THE CLASS IN ADVANCE AS TO THE CHANGES BEING MADE.