The United States residential real estate market is enormous comprising a value of over $8.5 trillion in property and projected to grow at approximately 9% per year through 2027. At any given time, over 1 million housing units are for sale with an average sale price of over $300,000, or total transaction volume annually well in excess of $300 billion. In a market as large as this, understanding the details of how the U.S. residential real estate market works is essential for any professional working in this space
Read more
The United States residential real estate market is enormous comprising a value of over $8.5 trillion in property and projected to grow at approximately 9% per year through 2027. At any given time, over 1 million housing units are for sale with an average sale price of over $300,000, or total transaction volume annually well in excess of $300 billion. In a market as large as this, understanding the details of how the U.S. residential real estate market works is essential for any professional working in this space
The United States residential real estate market is enormous comprising a value of over $8.5 trillion in property and projected to grow at approximately 9% per year through 2027. At any given time, over 1 million housing units are for sale with an average sale price of over $300,000, or total transaction volume annually well in excess of $300 billion. In a market as large as this, understanding the details of how the U.S. residential real estate market works is essential for any professional working in this space
This course covers what you will need to know to function effectively in the real estate business, whether as a banker, financier, underwriter, property manager, investor, operations professional or other person working in the field. This course was written by Paul Siegel and delivered by Russ Faulkner in collaboration to ensure you have everything you need to know to be knowledgeable about residential real estate and mortgages in the United States. Paul was active as an investment banker and was involved in the financing of over $1 billion of real property in the U.S.; and, Russ, worked for one of the largest global banks delivering top-notch training to employees and consultants worldwide.
This program is one of the most highly rated real estate and mortgage courses available anywhere. It has been used by the world’s largest financial institutions and technology companies to train their staff on what the U.S. residential real estate and mortgage markets are all about.
* * * * *
Building from the ground up (pun intended), we cover the most essential elements of the residential real estate and mortgage business (e.g., the important players, segments of the business key terminology that you need to know) and then jump right into unpackaging the consumer buying cycle and examine the lifecycle of a residential mortgage from origination and underwriting through to syndication and distribution. We spend time examining what goes into originating, servicing, and valuing a mortgage by examining the metrics that make up the loan process. We also examine the tools that help a financial institution or mortgage underwriting business make a sound creditworthiness decision, by exploring the credit report and the real estate appraisal. Finally, we demystify the mortgage securitization process so that you understand how a simple real estate loan is bundled with others to become security which the underwriting organization can then package and resell into the market to recycle its capital.
This course contains nearly 30 modules in 3 sections and is structured so you have a clear awareness of how residential mortgages work in the real world:
· U.S. Residential Mortgage Business and Process Fundamentals
· U.S. Residential Mortgage Analysis: Bringing It All Together
· Loan Management, Servicing and Securitization
this course's contents consist of videos for each section along with accompanying pdfs of each slide that outlines the key elements to be covered, and then followed in each module that consists of a narrated presentation.
* * * * *
This course is part of a much larger curriculum available from the instructors entitled: U.S. Residential Real Estate Immersion Program. That certification program is divided into Core, Intermediate and Advance components which together comprise approximate 90 hours of on-demand, live and exercise/quiz/test content, incorporating:
Module 1 - The Real Estate Business
Module 2 - Real Estate Laws, Qualifications, Requirements and Measurements
Module 3 - Real Property Rights
Module 4 - Title, Deeds, and Ownership Restrictions
Module 5 - Real Estate Contracts
Module 6 - Residential Mortgages and Property Financings
Module 7 - Types of Mortgages and Sources of Finance
Module 8 - Real Estate Deal Closings and Financial Calculations
Module 9 - Real Estate Market Analysis and Property Appraisals
Module 10 - Planning, Zoning, Environmental Hazards, and Taxes
* * * * *
More about this course and Starweaver
This course is led by a seasoned real estate investment banking industry practitioner and executive with many years of hands-on, in-the-trenches real estate analysis, underwriting, packaging and marketing work. It has been designed, produced and delivered by Starweaver. Starweaver is one of the most highly regarded, well-established training providers in the world, providing training courses to many of the leading financial institutions and technology companies, including:
Ahli United Bank; Mashreqbank; American Express; ANZ Bank; ATT; Banco Votorantim; Bank of America; Bank of America Global Markets; Bank of America Private Bank; Barclay Bank; BMO Financial Group; BMO Financial Services; BNP Paribas; Boeing; Cigna; Citibank; Cognizant; Commerzbank; Credit Lyonnais/Calyon; Electrosonic; Farm Credit Administration; Fifth Third Bank; GENPACT; GEP Software; GLG Group; Hartford; HCL; HCL; Helaba; HSBC; HSBC Corporate Bank; HSBC India; HSBC Private Bank; Legal & General; National Australia Bank; Nomura Securities; PNC Financial Services Group; Quintiles; RAK Bank; Regions Bank; Royal Bank of Canada; Royal Bank of Scotland; Santander Corporate Bank; Tata Consultancy Services; Union Bank; ValueMomentum; Wells Fargo; Wells Fargo India Solutions; Westpac Corporate Bank; Wipro; and, many others.
Starweaver has and continues to deliver 1000s of live in-person and online education for organizational training programs for new hires and induction, as well as mid-career and senior-level immersion and leadership courses.
If you are looking for live streaming education or want to understand what courses might be best for you in technology or business, just google:
starweaver journey builder starweaver[dot]com
Happy learning.
What's inside
Learning objectives
- Describe the real estate mortgage market, including how and why people finance properties with mortgages.
- Explain the size and scope of the u.s. residential mortgage market.
- List and discuss roles of the key players in the mortgage industry and the functions and roles they have.
- Apply current and historic mortgage regulations to financial and credit underwriting of mortgage loans
- Identify key mortgage types and describe the audience and markets for each.
- Delineate the various residential property types, and the risks each has to the mortgage lender.
- Articulate the financial and business terms and conditions related to mortgages, as well as the full meaning and importance of each.
- Explain the full consumer mortgage underwriting lifecycle from the consumer, originator, underwriter and financier povs, and each step along the way.
- Conduct a borrower income analysis, read and understand credit history and reports, and evaluate the credit worthiness of a borrower.
- Evaluate appraisals and asset valuations, and the appraisals and the appraisal process.
- Explain titling and insurance, titling requirements and related title issues.
- Use (and not be afraid of) the math, rates and calculations behind mortgage pricing.
- Discuss mortgage metrics and be able to provide an overview of loan approvals and rejections.
- Identify financial distress in mortgages, including early warning signs, foreclosure alternatives, and loss mitigation strategies.
- You'll learn about loan servicing and servicing regulations.
- Define securitization, learn why financial institutions securitize mortgages, and advantages and disadvantages of securitization to the issuer and investor.
- Describe the mortgage securitization process, from origination, to packaging and to servicing a securitized portfolio of mortgages.
- Understand what a mortgage backed security (mbs) is, how rating agencies are involved in evaluating mbs securitizations, and appreciate the complexities.
- Show more
- Show less
- Describe the real estate mortgage market, including how and why people finance properties with mortgages.
- Explain the size and scope of the u.s. residential mortgage market.
- List and discuss roles of the key players in the mortgage industry and the functions and roles they have.
- Apply current and historic mortgage regulations to financial and credit underwriting of mortgage loans
- Identify key mortgage types and describe the audience and markets for each.
- Delineate the various residential property types, and the risks each has to the mortgage lender.
- Articulate the financial and business terms and conditions related to mortgages, as well as the full meaning and importance of each.
- Explain the full consumer mortgage underwriting lifecycle from the consumer, originator, underwriter and financier povs, and each step along the way.
- Conduct a borrower income analysis, read and understand credit history and reports, and evaluate the credit worthiness of a borrower.
- Evaluate appraisals and asset valuations, and the appraisals and the appraisal process.
- Explain titling and insurance, titling requirements and related title issues.
- Use (and not be afraid of) the math, rates and calculations behind mortgage pricing.
- Discuss mortgage metrics and be able to provide an overview of loan approvals and rejections.
- Identify financial distress in mortgages, including early warning signs, foreclosure alternatives, and loss mitigation strategies.
- You'll learn about loan servicing and servicing regulations.
- Define securitization, learn why financial institutions securitize mortgages, and advantages and disadvantages of securitization to the issuer and investor.
- Describe the mortgage securitization process, from origination, to packaging and to servicing a securitized portfolio of mortgages.
- Understand what a mortgage backed security (mbs) is, how rating agencies are involved in evaluating mbs securitizations, and appreciate the complexities.
- Show more
- Show less
Syllabus
U.S. Residential Mortgage Business and Process Fundamentals
Just a brief "hello" and explanation for you.
Your instructor, Russ Faulkner, provides an overview of this course and what you will learn.
Read more
Syllabus
Just a brief "hello" and explanation for you.
Your instructor, Russ Faulkner, provides an overview of this course and what you will learn.
Instructor Russ Faulkner introduces the U.S. Residential Mortgage Business and discusses key elements of the first section within this course.
This module covers the various types of properties (commercial; residential, including single family, multi-family, condominium...), and the factors determining "value."
This module on mortgage loan types covers the full range of “permanent” funding types (traditional real estate mortgages), home equity or refinancings, and construction financings. We discuss the common funding scenarios, the profile of the owners, and the typical "loan products" they will use.
While innumerable terms and conditions can be created and customized in a mortgage to suit the needs to the borrower and lender, here we cover what you "typically" see, including promise to pay (principal, interest, penalties, etc., along with note, date, names, etc.), escrow, order of application of payments, hazard insurance, mortgage insurance, covenants, defaults, and much more.
The math and calculations that go into mortgage financing is core to everything you need to know. Here we discuss everything from the terminologies, to understanding amortization schedules (illustrating how amortization schedules allocate principal vs. interest), and to the key ratios involved.
This module illustrates the market size and dynamics. (Full module update will be available by January 2025)
Who is who in the mortgage "life cycle," from borrowing, underwriting and origination, all the way through packaging, securitization and distribution. This module gives you a picture of what is going on and who does what, including the borrowers, sales and marketers, lenders, appraisers, credit agencies, government, agencies, private insurers, title companies, investors, servicers, among others.
To understand the mortgage business, it is key to appreciate this from the financier's perspective, how they really make money in in originating mortgages, servicing and securitization. This is discussed here.
We cover what the mortgage life cycle from a consumer's point of view, from the buying cycles to how the real estate process feeds into the mortgage loan process.
The lender's point of view looks at key decision points and underwriting at a high level.
Regulatory oversight has changed and is constantly evolving. We cover the key issues today. (Full module update will be available by January 2025)
The ups and downs of personal financial conditions, as well as the economy overall, means that financial distress is a never ending challenge in the mortgage business. This module covers financial distress and foreclosure avoidance Issues surrounding financial distress covered here are out of date. (Full module update will be available by January 2025)
Instructor Russ Faulkner introduces the next section and breaks down the key items to be discussed.
This module covers the components of consumer mortgage lending; the factors impacting residential mortgage credit approval process; and, the detailed documents for financial analysis required from borrower, regarding property and for government / regulatory approvals.
The income analysis of a borrower module explains and share income verification requirements, the Identify the initial steps of the loan packet, income verification, the documentation requirements, and demonstrated how income links to credit history.
We help you understand and identify key elements of credit reports and reporting bureaus, how to read a credit report, and what are the different credit bureaus and what they report
More discussion of credit report analysis, including examining what the most common reports look like, and where you can find specific relevant information in each.
Here we explain the main metrics that go into a loan approval, the most important mortgage metrics and and overview of loan approvals and rejections.
In order to be able to make an intelligent decision about a mortgage, you need to understand how appraisals are done, and how assets are valued. We cover that here.
We go through a detailed examination of an appraisal report so you know what it looks like, and what to expect when you review these documents.
What is a "title," and how does it relate to the property? And, why does title insurance matter? You learn that here.
This is an introduction to residential loan management and identifies what topics will be discussed in this section.
The fundamentals of loan servicing are introduced and explained here.
While the concept of "securitization" can be confusing, here we break it down so anyone can understand what is happening, and why. (Full module update will be available by August 2024)
Securitization involves and mortgage, the "issuer" of the mortgage (generally a bank making the loan to the homeowner/buyer), and the investors that invest in the loan. The roles and responsibilities of each party are clarified and simplified here.
Once a mortgage is placed into a "mortgage pool," it starts through the "life cycle of a mortgage-backed security." We discuss that here.
Risks exist in all financial transactions. Here we discuss how these risks are reduced or "mitigated" through the use of credit rating agencies who clarify for investors the risk of a given pool of mortgage-backed securities.
Traffic lights
Save this course
Save
Reviews summary
Practical overview of us mortgage business
Provides clear and easy-to-follow explanations.
Instructors demonstrate real-world industry expertise.
Excellent starting point for professionals or beginners.
Clearly explains the process from origination to securitization.
Offers a solid, practical overview of the industry.
Activities
Review Basic Financial Concepts
Show steps
Reinforce your understanding of fundamental financial concepts like interest rates, loan terms, and credit scores to better grasp mortgage-related topics.
Browse courses on
Financial Literacy
Show steps
-
Read articles or watch videos explaining key financial terms.
-
Take a practice quiz on basic financial principles.
-
Review your personal budget and credit report.
Read 'The Book on Rental Property Investing'
Show steps
Gain insights into the investor's perspective on residential real estate and how mortgages play a role in their investment strategies.
View
The Multifamily Millionaire, Volume I: Achieve...
on Amazon
Show steps
-
Read the book, taking notes on key concepts and strategies.
-
Identify how the concepts relate to mortgage financing.
-
Summarize the key takeaways and their relevance to the course.
Create a Mortgage Glossary
Show steps
Solidify your understanding of mortgage terminology by creating a comprehensive glossary of terms used in the course.
Show steps
-
Compile a list of key mortgage terms from the course materials.
-
Define each term in your own words, providing examples where applicable.
-
Organize the glossary alphabetically and share it with classmates.
Four other activities
Expand to see all activities and additional details
Show all seven activities
Build a Mortgage Amortization Schedule
Show steps
Deepen your understanding of mortgage calculations by creating an amortization schedule using spreadsheet software.
Show steps
-
Choose a mortgage amount, interest rate, and loan term.
-
Set up a spreadsheet with columns for payment number, beginning balance, payment amount, interest paid, principal paid, and ending balance.
-
Use formulas to calculate the interest and principal portions of each payment and update the balance accordingly.
-
Verify that the ending balance reaches zero at the end of the loan term.
Analyze a Real Mortgage Scenario
Show steps
Apply your knowledge by analyzing a real-world mortgage scenario, evaluating the borrower's creditworthiness and the risks involved.
Show steps
-
Obtain a sample mortgage application and credit report (with sensitive data redacted).
-
Analyze the borrower's income, credit history, and assets.
-
Assess the risks associated with the loan and make a recommendation on whether to approve or deny it.
-
Write a report summarizing your analysis and recommendation.
Read 'Real Estate Finance & Investments'
Show steps
Expand your knowledge of real estate finance principles and gain a deeper understanding of the mortgage market.
View
Real Estate Finance & Investments ISE
on Amazon
Show steps
-
Read selected chapters focusing on mortgage markets and securitization.
-
Take notes on key concepts and formulas.
-
Apply the concepts to real-world examples.
Attend a Real Estate Investment Club Meeting
Show steps
Connect with real estate professionals and investors to learn about current market trends and mortgage financing strategies.
Show steps
-
Find a local real estate investment club or association.
-
Attend a meeting and introduce yourself to other members.
-
Ask questions about their experiences with mortgage financing.
-
Share your learnings from the course.
Review Basic Financial Concepts
Show steps
Reinforce your understanding of fundamental financial concepts like interest rates, loan terms, and credit scores to better grasp mortgage-related topics.
Browse courses on
Financial Literacy
Show steps
- Read articles or watch videos explaining key financial terms.
- Take a practice quiz on basic financial principles.
- Review your personal budget and credit report.
Read 'The Book on Rental Property Investing'
Show steps
Gain insights into the investor's perspective on residential real estate and how mortgages play a role in their investment strategies.
View
The Multifamily Millionaire, Volume I: Achieve...
on Amazon
Show steps
- Read the book, taking notes on key concepts and strategies.
- Identify how the concepts relate to mortgage financing.
- Summarize the key takeaways and their relevance to the course.
Create a Mortgage Glossary
Show steps
Solidify your understanding of mortgage terminology by creating a comprehensive glossary of terms used in the course.
Show steps
- Compile a list of key mortgage terms from the course materials.
- Define each term in your own words, providing examples where applicable.
- Organize the glossary alphabetically and share it with classmates.
Build a Mortgage Amortization Schedule
Show steps
Deepen your understanding of mortgage calculations by creating an amortization schedule using spreadsheet software.
Show steps
- Choose a mortgage amount, interest rate, and loan term.
- Set up a spreadsheet with columns for payment number, beginning balance, payment amount, interest paid, principal paid, and ending balance.
- Use formulas to calculate the interest and principal portions of each payment and update the balance accordingly.
- Verify that the ending balance reaches zero at the end of the loan term.
Analyze a Real Mortgage Scenario
Show steps
Apply your knowledge by analyzing a real-world mortgage scenario, evaluating the borrower's creditworthiness and the risks involved.
Show steps
- Obtain a sample mortgage application and credit report (with sensitive data redacted).
- Analyze the borrower's income, credit history, and assets.
- Assess the risks associated with the loan and make a recommendation on whether to approve or deny it.
- Write a report summarizing your analysis and recommendation.
Read 'Real Estate Finance & Investments'
Show steps
Expand your knowledge of real estate finance principles and gain a deeper understanding of the mortgage market.
View
Real Estate Finance & Investments ISE
on Amazon
Show steps
- Read selected chapters focusing on mortgage markets and securitization.
- Take notes on key concepts and formulas.
- Apply the concepts to real-world examples.
Attend a Real Estate Investment Club Meeting
Show steps
Connect with real estate professionals and investors to learn about current market trends and mortgage financing strategies.
Show steps
- Find a local real estate investment club or association.
- Attend a meeting and introduce yourself to other members.
- Ask questions about their experiences with mortgage financing.
- Share your learnings from the course.
Career center
Mortgage Underwriter
Real Estate Analyst
Credit Risk Manager
Real Estate Appraiser
Mortgage Broker
Real Estate Investor
Loan Officer
Portfolio Manager
Mortgage Servicer
Financial Analyst
Compliance Officer
Real Estate Consultant
Property Manager
Financial Planner
Commercial Real Estate Agent
Reading list
Share
Similar courses
OpenCourser helps millions of learners each year. People visit us to learn workspace skills, ace their exams, and nurture their curiosity.
Our extensive catalog contains over 50,000 courses and twice as many books. Browse by search, by topic, or even by career interests. We'll match you to the right resources quickly.
Find this site helpful? Tell a friend about us.
We're supported by our community of learners. When you purchase or subscribe to courses and programs or purchase books, we may earn a commission from our partners.
Your purchases help us maintain our catalog and keep our servers humming without ads.
Thank you for supporting OpenCourser.
