RE-160 Lecture Notes - Lecture 23: Opportunity Cost, Federal Deposit Insurance Corporation
Where lenders make money directly from borrowers. Loans are originated, consisting of lenders such as commercial banks, savings associations, and mutual savings banks. Sale of loan to make new loans (opportunity cost of capital) Subject to regulations set by government agencies such as the fdic (federal deposit insurance. An independent federal agency established by congress to examine and supervise financial situations ,manage receiverships, and insure deposits (up to k) Invest much of their premium income in profitable enterprises, including long-term real estate loans. Cooperative organizations that require membership to borrow. Have become active in making long-term and second mortgage loans. Becoming more active in making long-term first and second mortgage loans. Funds channeled through mortgage bankers and mortgage brokers. Source for financing low-risk commercial and industrial property. Funds come from sources such as partnerships. Pooled money to buy real estate, frees up more capital, diversify assets.