Chapter 13: government involvement in re financing - part 1: the primary. To close the real estate transaction, final negotiations need to take place and new professionals begin to play a roll in the closing process. This process is also regulated by federal and state. Mortgages secured by one- to four-family structures. The federal reserve has a direct impact on the mortgage market. It regulates the flow of money and interest rates in the marketplace through its member banks by controlling the rate charged for loans it makes to those banks, called the discount rate. It sets the reserve requirements for banks the minimum level of funds that a bank must maintain. Reserve requirements increase, less money available for mortgages. A youtube view of the impact of real estate lending (looking at both the primary and secondary markets) titled. The crisis of credit visualized hd 11 minutes.