1. Washington Real Estate Fundamentals
Lesson 10:
Principles of Real Estate Financing
© 2011 Rockwell Publishing

2. Economics of Real Estate Finance
For a lender, a loan is an investment.
Interest paid on loan is lender’s return.
Riskier loan requires higher return (higher interest rate).
Interest rate charged on a loan also depends on market forces and real estate cycles.
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3. Economics of Real Estate Finance Real estate cycles
Real estate cycles: Periodic shifts in level of activity in real estate market.
Real estate cycles obey law of supply and demand.
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4. Real Estate Cycles Law of supply and demand
Home prices go up when demand is high and supply is low.
Seller’s market.
High prices stimulate home construction.
Home prices go down when supply is high and demand is low.
Buyer’s market.
Low prices stimulate demand, and cycle begins again.
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5. Real Estate Cycles Mortgage loan funds
Demand for homes tied to changes in supply of and demand for mortgage loan funds.
When supply of mortgage funds is large:
interest rates low
demand for home loans increases
When funds are scarce:
interest rates high (tight money market)
demand for home loans decreases
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6. Real Estate Cycles Mortgage loan funds
Supply of mortgage loan funds depends on:
how much money investors have available
how much they choose to invest in mortgage loans
This is affected by:
overall economy
market interest rates
how mortgage lending compares to other investments
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7. Economics of Real Estate Finance Interest rates and federal policy
Federal government influences real estate financing and rest of economy through:
fiscal policy
monetary policy
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8. Interest Rates and Federal Policy Fiscal policy
Fiscal policy includes:
spending
taxation
debt management
Set by Congress and the President, through tax legislation and federal budget.
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9. Interest Rates and Federal Policy Fiscal policy
Federal deficit: Shortfall created when U.S. government spends more than it collects in revenue.
To cover deficit, Treasury borrows money by selling interest-bearing securities to investors.
Less money available for investment in private sector.
Increase in deficit tends to make interest rates rise.
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10. Interest Rates and Federal Policy Monetary policy
Monetary policy: Federal government’s direct efforts to control money supply and interest rates.
Monetary policy determined by Federal Reserve (“the Fed”).
Major goals:
economic growth
stability in interest rates and markets
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11. Interest Rates and Federal Policy Monetary policy
Federal Reserve sets monetary policy using these tools:
key interest rates
reserve requirements
open market operations
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12. Monetary Policy Key interest rates
Fed has control over two interest rates:
federal funds rate
discount rate
These are rates charged when a bank borrows from another bank or from a Federal Reserve Bank.
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13. Monetary Policy Key interest rates
If Fed raises key rates, banks also raise interest rates they charge borrowers.
If Fed lowers key rates, banks also lower their interest rates.
Lower interest rates usually stimulate economy.
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14. Monetary Policy Reserve requirements
Reserve requirements: Amount of money (percentage of deposits) banks must maintain on deposit, to meet requests for withdrawals.
If Fed raises reserve requirements:
less money available for lending
interest rates go up
If Fed lowers reserve requirements:
more money available for lending
interest rates go down
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15. Monetary Policy Open market operations
Open market operations: When Fed buys and sells government securities (such as Treasury notes).
Fed’s primary method of managing money supply.
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16. Monetary Policy Open market operations
Buying government securities from investors puts more money into circulation, so that:
money supply increases
interest rates go down
Selling government securities to investors takes money out of circulation, so that:
money supply decreases
interest rates go up
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17. Interest Rates and Federal Policy Other agencies that affect financing
Several other federal agencies also affect real estate financing, such as:
Federal Home Loan Bank System
Federal Deposit Insurance Corp. (FDIC)
Dept. of Housing and Urban Development (HUD)
Rural Housing Service
Farm Credit System
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18. Summary Economics of Real Estate Finance
Real estate cycles
Supply and demand
Fiscal policy
Federal deficit
Monetary policy
Key interest rates
Reserve requirements
Open market operations
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19. Real Estate Finance Markets
Two finance markets supply funds for real estate loans:
primary market
secondary market
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20. Real Estate Finance Markets Primary market
Primary market: Market in which mortgage lenders make loans to home buyers.
Historically, primary market was strictly local: local banks and savings & loans.
Now much more diverse, but local economic conditions still have impact on amount of funds lenders have available.
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21. Real Estate Finance Markets Primary market
When local economy booming:
less money saved
local lenders can’t keep up with demand for loans
When local economy slow:
more money saved
local lenders have ample funds but little demand for loans
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22. Real Estate Finance Markets Primary market
For lenders, it’s a problem to have either too much or too little money on deposit.
To address this problem, lenders look for opportunities beyond the local market.
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23. Real Estate Finance Markets Secondary market
Secondary market: Market in which private investors and government-sponsored agencies buy and sell mortgages secured by real estate nationwide.
Allows local lenders to sell loans, to obtain more funds to make more loans.
Moderates local real estate cycles because it’s a national market.
© 2011 Rockwell Publishing

24. Secondary Market Buying and selling loans
Mortgage loans can be bought and sold like other investments (such as stocks or bonds).
Value of loan depends on rate of return and risk of default.
Investors generally buy loans at a discount (for less than face value).
But discounted loans can be foreclosed for face value if borrower defaults.
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25. Secondary Market Government-sponsored agencies
Federal government established three secondary market agencies:
Fannie Mae
Freddie Mac
Ginnie Mae
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26. Secondary Market Agencies Securitizing loans
Role of secondary market agencies:
buying loans from primary market lenders
issuing securities using the loans as collateral
selling these mortgage-backed securities to investors
guaranteeing investors a return even if borrowers default
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27. Secondary Market Agencies Underwriting standards
To reduce risk of default, agencies established their own underwriting standards.
Underwriting standards: Criteria used to evaluate loan applicant and property offered as security.
Primary market lenders that want to sell loans on secondary market generally must meet agencies’ standards.
© 2011 Rockwell Publishing

28. Secondary Market Agencies Fannie Mae
Federal National Mortgage Association (FNMA)
Created as federal agency in 1938 to establish secondary market for FHA loans.
Reorganized as private corporation (government-sponsored enterprise, or GSE) in 1968.
Buys and securitizes conventional, FHA, and VA loans.
© 2011 Rockwell Publishing

29. Secondary Market Agencies Freddie Mac
Federal Home Loan Mortgage Corporation
Created in 1970 to provide secondary market for savings and loans.
Like Fannie Mae:
government-sponsored enterprise
buys and securitizes conventional, FHA, and VA loans
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30. Secondary Market Agencies Ginnie Mae
Government National Mortgage Association
Government agency within HUD.
Guarantees securities backed by FHA and VA loans.
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31. Secondary Market Agencies Recent developments
Because of severe financial problems brought on by the recession, federal government placed both Fannie Mae and Freddie Mac in conservatorship in 2008.
Also created new regulator for them: Federal Housing Financing Agency (FHFA).
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32. Summary Real Estate Finance Markets
Primary market
Secondary market
Secondary market agencies
Government-sponsored enterprises
Loan discounting
Mortgage-backed securities
Underwriting standards
© 2011 Rockwell Publishing

33. Real Estate Finance Documents
Most real estate buyers are required to sign two finance documents:
promissory note
security instrument (either a mortgage or a deed of trust)
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34. Real Estate Finance Documents Promissory notes
Promissory note: Written promise to repay a debt (plus interest, in most cases).
Borrower = Maker
Lender = Payee
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35. Promissory Notes Basic provisions
Promissory note states:
amount borrowed (principal)
interest rate (and whether fixed or variable)
payment amount
when and how payments are to be made
maturity date (when loan to be paid in full)
consequences of default
Does not include property description.
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36. Promissory Notes Types of notes
Promissory notes classified according to how principal and interest are repaid:
Straight note
Installment note
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37. Types of Notes Straight note
Straight note: Promissory note used for term loan, also called interest-only loan.
Payments during loan term cover only interest (no principal).
At end of term, borrower must pay back entire principal amount with one balloon payment.
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38. Types of Notes Installment note
Installment note: Promissory note used for amortized loan.
Part of each payment is interest and the rest is principal.
Each payment gradually reduces loan’s principal balance.
If note fully amortized, payments pay off all principal and interest by end of term.
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39. Promissory Notes Simple interest
Interest paid on a real estate loan is almost always simple interest, as opposed to compound interest.
Interest is computed only on remaining principal balance.
Not computed on previously accrued interest as well as on principal.
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40. Promissory Notes Negotiable instruments
Most promissory notes used in real estate transactions are negotiable instruments.
Negotiable instrument: Debt can be assigned to someone else by endorsement (like a check).
Endorsing note transfers right of payment to new party.
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41. Real Estate Finance Documents Security instruments
Security instrument: Contract that makes borrower’s property collateral for loan.
Either a mortgage or a deed of trust.
If borrower doesn’t repay loan, lender can foreclose on property.
Foreclosure: Forced sale of debtor’s property so that creditor can collect debt from sale proceeds.
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42. Security Instruments Secured creditor
Secured creditor: Creditor who has security interest in debtor’s property.
Promissory note can be enforced without security instrument.
Creditor can sue to enforce note.
But secured creditor more certain of collecting debt than unsecured creditor.
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43. Security Instruments Historical background
Hypothecation: Borrower transferred title to lender as security, but retained possession of collateral property.
Lender held legal title (also called naked or bare title): title without possessory rights.
Borrower had equitable title: possessory rights without legal title.
Still works this way in some states.
© 2011 Rockwell Publishing

44. Security Instruments Historical background
In title theory states, lender holds legal title throughout loan term.
In lien theory states:
Borrower retains full title while paying loan off.
Lender only has lien against property.
Most states, including Washington, are lien theory states.
© 2011 Rockwell Publishing

45. Security Instruments Types of security instruments
Two types of real estate security instruments:
mortgages
deeds of trust
Main difference: Foreclosure easier with deed of trust.
Deeds of trust much more widely used than mortgages in Washington and some other states.
© 2011 Rockwell Publishing

46. Types of Security Instruments Mortgage
Two parties to a mortgage:
mortgagor (borrower)
mortgagee (lender)
But note that “mortgage” and “mortgage loan” are commonly used to refer to any loan secured by real estate, regardless of type of security instrument actually used.
© 2011 Rockwell Publishing

47. Types of Security Instruments Deed of trust
Three parties to a deed of trust:
trustor or grantor (borrower)
beneficiary (lender)
trustee (neutral third party who handles foreclosure if necessary)
Language in deed of trust based in title theory; says legal title conveyed to trustee pending repayment of debt.
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48. Security Instruments Recording
Lender should record security instrument as soon as loan is made.
Recording:
gives public notice of lender’s lien against the property
protects lender from subsequent claims
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49. Summary Real Estate Finance Documents
Promissory note
Straight note
Installment note
Security instrument
Foreclosure
Secured creditor
Mortgage
Deed of trust
Hypothecation
Title theory and lien theory
© 2011 Rockwell Publishing

50. Finance Document Provisions
Mortgaging or granting clause
Taxes and insurance
Acceleration clause
Alienation clause
Late payment penalty provision
Lock-in clause
Prepayment provision
Subordination clause
Defeasance clause
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51. Finance Document Provisions Mortgaging or granting clause
Security instrument must include statement that property is pledged as security for loan.
Mortgaging clause in mortgage.
Granting clause in deed of trust.
Must also include description adequate to identify the security property.
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52. Finance Document Provisions Taxes and insurance
Security instrument provides that borrower must:
keep security property adequately insured against hazards such as fire
pay all property taxes and special assessments
Failure to comply is default on the mortgage, just like failing to make loan payments.
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53. Finance Document Provisions Acceleration clause
Acceleration clause: Gives lender right to demand immediate payment of entire principal balance if borrower defaults.
Aka call provision (“calling the note”).
Clause in both note and security instrument.
Triggered by any default on terms of either document.
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54. Finance Document Provisions Alienation clause
Alienation clause: Gives lender right to accelerate loan if borrower sells security property or transfers an interest.
Aka due-on-sale clause.
Doesn’t prohibit sale of property.
Does allow lender to force borrower to pay off loan if property sold without lender’s approval.
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55. Alienation Clause Sale without loan payoff
If loan not paid off when property sold, buyer takes title subject to lender’s lien.
Buyer may assume mortgage or deed of trust.
Buyer has primary liability to lender.
Original borrower has secondary liability.
If buyer does not assume loan:
buyer not personally liable for repayment
lender can still foreclose in case of default
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56. Alienation Clause Assumption with lender’s approval
If mortgage or deed of trust has alienation clause, lender has opportunity to screen buyer.
If buyer creditworthy, lender will:
approve buyer’s assumption of loan
release original borrower from liability
Lender charges buyer assumption fee and may raise interest rate.
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57. Alienation Clause Assumption with lender’s approval
Buyer assuming loan should ask lender to provide certificate of reduction.
Certificate of reduction: States loan’s principal balance as of assumption date.
Also called estoppel certificate.
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58. Finance Document Provisions Late payment penalty provision
Late payment charges allowed only if clearly defined in finance documents and reasonable.
Federal law limits late fees for many residential loans.
IRS does not regard late payment penalties as interest, so not tax-deductible.
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59. Finance Document Provisions Lock-in clause
Lock-in clause: Prohibits borrower from paying loan off early (prepaying loan).
Borrower locked in to loan payments for full term, or for specified number of years.
Helps ensure that lender will receive anticipated return on investment.
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60. Finance Document Provisions Prepayment provision
Prepayment penalty: Charge borrower must pay lender if more than a specified amount of principal repaid before payment due.
Many loans have no prepayment penalty.
This type is called an open mortgage.
Prepayment penalties are:
more common with subprime loans
limited by federal and state law
© 2011 Rockwell Publishing

61. Finance Document Provisions Subordination clause
Subordination clause: Gives this security instrument lower lien priority than another security instrument to be recorded later.
Common in loans for purchase of vacant land that borrower intends to develop.
When construction loan obtained, that later lender will demand first lien position.
Construction loans are high-risk.
© 2011 Rockwell Publishing

62. Finance Document Provisions Defeasance clause
Defeasance clause: Provision in which lender agrees to cancel security instrument when debt has been paid off.
Lender must provide lien release document for recording:
deed of reconveyance
satisfaction of mortgage
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63. Summary Finance Document Provisions
Mortgaging or granting clause
Acceleration clause
Alienation clause
Assumption
Lock-in clause
Prepayment provision
Subordination clause
Defeasance clause
Deed of reconveyance
Satisfaction of mortgage
© 2011 Rockwell Publishing

64. Foreclosure Procedures
Foreclosure: Forced sale of debtor’s property so that creditor can collect debt from sale proceeds.
Foreclosure is real estate lender’s remedy when borrower defaults. Default may be:
failure to repay loan
failure to insure property or pay taxes
breach of other loan agreement provision
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65. Foreclosure Procedures
Two main forms of foreclosure:
judicial foreclosure
nonjudicial foreclosure
As a general rule:
mortgages are foreclosed judicially
deeds of trust are foreclosed nonjudicially
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66. Foreclosure Procedures Judicial foreclosure
Main steps in judicial foreclosure:
Mortgagee files lawsuit against mortgagor called foreclosure action.
Junior lienholders notified.
Judge issues decree of foreclosure.
Property sold at public auction called sheriff’s sale.
Highest bidder given certificate of sale.
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67. Judicial Foreclosure Equitable redemption
Equitable redemption period: Period from filing of foreclosure action until sheriff’s sale.
During this period, borrower may stop foreclosure and redeem property by paying:
mortgage debt in full, including all principal and interest
costs incurred because of foreclosure
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68. Judicial Foreclosure Statutory redemption
Statutory redemption period: Period after sheriff’s sale when borrower has final chance to redeem property. In Washington:
eight months if lender waives right to deficiency judgment
one year if lender does not
Sheriff’s deed: Deed given to holder of certificate of sale at end of statutory redemption period if property not redeemed.
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69. Judicial Foreclosure Surplus or deficiency
After judicial foreclosure:
Borrower entitled to any surplus left after mortgage and other liens paid off.
But if proceeds don’t even cover loan amount, lender may be entitled to deficiency judgment for the difference.
Non-recourse mortgage: Mortgage that does not permit deficiency judgment.
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70. Foreclosure Procedures Nonjudicial foreclosure
Power of sale clause: Provision in deed of trust authorizing trustee to sell property (without going to court) if borrower defaults.
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71. Nonjudicial Foreclosure Main steps
Trustee sends borrower notice of default.
Trustee issues notice of sale one month later.
Notice of sale recorded and sent to borrower, junior lienholders, and anyone who recorded request for notice.
Trustee conducts auction called trustee’s sale.
Successful bidder receives trustee’s deed.
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72. Nonjudicial Foreclosure Reinstatement and redemption
Borrower may reinstate loan and stop foreclosure:
by paying only past due amount plus costs
until shortly before date of trustee’s sale
Or borrower may redeem property:
by paying off entire debt plus costs
at any time until trustee’s sale held
No post-sale redemption allowed.
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73. Nonjudicial Foreclosure Surplus or deficiency
As with judicial foreclosure, borrower entitled to any surplus after deed of trust and other liens paid off.
However, deficiency judgment not permitted after nonjudicial foreclosure.
If proceeds don’t cover amount owed, lender can’t sue borrower for difference.
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74. Alternatives to Foreclosure
Three alternatives to foreclosure for defaulting borrower:
loan workout
deed in lieu of foreclosure
short sale
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75. Alternatives to Foreclosure Loan workouts
Loan workout: Arrangement in which lender agrees to change payment schedule or other loan terms to help borrower avoid foreclosure.
Forbearance: Extra time to repay.
Loan modification might involve:
changing variable interest rate to fixed
lowering interest rate
reducing principal amount owed
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76. Alternatives to Foreclosure Deeds in lieu of foreclosure
Deed in lieu: Borrower who can’t arrange loan workout may avoid foreclosure by giving lender a deed in lieu of foreclosure.
Deed transfers title from borrower to lender.
Lender takes title subject to any liens other than its own.
Borrower should make sure lender can’t sue for deficiency.
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77. Alternatives to Foreclosure Short sales
Short sale: When security property is sold for whatever it will bring on open market, but “short” of amount still owed on loan.
Lender generally agrees to accept proceeds from sale as payment in full.
Borrower should make sure lender can’t sue for deficiency.
Difficult to arrange if multiple lenders.
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78. Summary Foreclosure and Alternatives
Judicial foreclosure
Nonjudicial foreclosure
Reinstatement
Redemption
Deficiency judgment
Loan workout
Deed in lieu
Short sale
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79. Land Contracts
Land contract: Financing agreement in which real estate buyer agrees to pay seller purchase price in installments over time.
Alternative to note plus mortgage or deed of trust, in seller-financed transaction.
Also called real estate contract, real property sales contract, conditional sales contract, installment sales contract, or contract for deed.
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80. Land Contracts Vendor and vendee
Seller = Vendor
Buyer = Vendee
Vendee agrees to make regular payments of principal and interest to vendor over specified period.
Vendee takes immediate possession of property.
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81. Land Contracts Equitable title and legal title
Although vendee takes possession immediately, holds only equitable title to property during contract term.
Vendor keeps legal title until contract price paid in full.
When contract paid off, vendor delivers deed to vendee, transferring fee simple estate.
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82. Land Contracts Rights and responsibilities
Vendee should record land contract to protect equitable interest.
Vendee responsible for paying property taxes and insuring property while paying off contract.
Vendor may encumber property, but not in a way that prevents delivery of clear title when contract paid off.
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83. Land Contracts Default
If vendee defaults on land contract, vendor may:
foreclose judicially
declare a forfeiture
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84. Land Contracts Forfeiture
Forfeiture allows vendor to terminate land contract and regain possession of property:
without having to go to court
without refunding vendee’s payments
In Washington, this option applies only if contract has forfeiture clause and is recorded.
Law also gives vendee with substantial equity some protection against forfeiture.
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85. Summary Land Contracts
Vendor
Vendee
Legal title
Equitable title
Forfeiture
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86. Types of Mortgage Loans
Different types of mortgage loans are used in various circumstances or designed to serve particular functions.
In spite of term “mortgage loan,” deed of trust would almost always be used in Washington.
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87. Types of Mortgage Loans First or second
First mortgage: Loan against a property that has higher lien priority than any other loans.
Loans against same property with lower priority are second mortgage, third mortgage, and so on.
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88. Types of Mortgage Loans Senior or junior
First mortgage is senior to second mortgage.
Second mortgage is junior to first mortgage, but senior to third mortgage.
Lien priority determines order in which loans will be paid off in foreclosure.
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89. Types of Mortgage Loans Purchase money
Purchase money mortgage: In general, any mortgage loan used to buy the property that will serve as security for the loan.
But also used more narrowly to refer to mortgage in seller-financed transaction.
Seller extends credit to buyer and “carries back” mortgage.
Buyer pays seller in installments.
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90. Types of Mortgage Loans Soft or hard money
Soft money mortgage: When seller gives buyer credit in exchange for mortgage.
Another term for purchase money mortgage in narrower sense.
Hard money mortgage: When lender gives borrower cash in exchange for mortgage.
May be purchase money mortgage in broader sense, unless borrower already owns security property.
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91. Types of Mortgage Loans Budget
Budget mortgage: When borrower’s monthly payment includes prorated share of property taxes and insurance in addition to principal and interest.
Lender holds funds in reserve account, pays taxes and insurance when due.
Reserve account is aka impound account.
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92. Types of Mortgage Loans Package
Package mortgage: When single loan is used to purchase personal property along with real property.
Example: Buyer purchases commercial ovens, freezers, and other equipment along with restaurant property.
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93. Types of Mortgage Loans Construction
Construction loan: Temporary loan used to finance construction of improvements on land. Aka interim loan.
Take-out loan: Permanent financing of construction debt, replacing interim loan after construction completed.
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94. Types of Mortgage Loans Construction
Construction loans are risky: borrower could exhaust loan funds before construction finished.
To prevent that, construction lenders have various ways of disbursing funds, such as:
Fixed disbursement plan: Borrower receives obligatory advances at various stages in construction process.
Lender may also hold back 10% or more for mechanic’s lien claims.
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95. Types of Mortgage Loans Blanket
Blanket mortgage: When several pieces of property secure a single loan.
Common in subdivision development.
Partial release clause: Requires lender to release some parcels from blanket lien once certain portion of loan repaid.
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96. Types of Mortgage Loans Participation
Participation mortgage: Lender entitled to portion of security property’s earnings, in addition to interest on principal.
Most common on large commercial projects.
Lender is insurance company or other large investor.
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97. Types of Mortgage Loans Shared appreciation
Shared appreciation mortgage: Lender entitled to portion of security property’s appreciation in value.
Part of increasing equity will belong to lender rather than borrower.
Equity: Difference between property’s market value and liens against it.
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98. Types of Mortgage Loans Wraparound
Wraparound mortgage: New loan to buyer that “wraps around” seller’s existing first loan.
Buyer makes payment on wraparound to seller.
Seller uses portion of buyer’s payment to make payment on underlying loan.
Underlying loan:
can’t have alienation clause
should be paid off before wraparound is
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99. Types of Mortgage Loans Open-end
Open-end mortgage: Allows borrower who has paid off part of loan to reborrow funds without arranging new loan.
Can reborrow up to the amount originally borrowed.
Loan usually has variable interest rate.
Often used by builders and farmers.
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100. Types of Mortgage Loans Graduated payment
Graduated payment mortgage (GPM): Borrower allowed to make smaller payments in early years of loan, then steps up to larger payments.
Good for borrowers who expect income to increase.
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101. Types of Mortgage Loans Swing
Swing loan: Temporary loan to buyer who needs funds to close purchase of new property because old property hasn’t sold yet.
Secured by equity in old property.
Paid off when sale of that property closes.
Aka gap loan or bridge loan.
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102. Types of Mortgage Loans Home equity
Home equity loan: Loan secured by borrower’s equity in home she already owns.
Usually a second mortgage, junior to existing purchase money loan.
May be used for remodeling or other improvements, or for expenses unrelated to property.
HELOC: Home equity line of credit; works like credit card, but secured by equity in home.
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103. Types of Mortgage Loans Reverse
Reverse mortgage: Provides source of income for elderly person who owns home free and clear, by converting equity into cash.
Owner receives monthly payment from lender in return for mortgaging home.
Mortgage typically paid off when home sold after owner’s death.
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104. Types of Mortgage Loans Subprime
Subprime loan: Loan made to borrower who doesn’t qualify for traditional (prime) mortgage loan.
Credit scores or income ratios don’t meet usual standards.
Or may be unable or unwilling to provide standard documentation.
Subprime lenders charge higher interest rates and fees to compensate for higher risk.
© 2011 Rockwell Publishing

105. Types of Mortgage Loans Refinancing
Refinancing: New loan used to pay off existing loan secured by same property.
May be from same lender or new lender.
Common reasons for refinancing:
to take advantage of lower interest rates
to make balloon payment on old loan
Cash-out refinancing: New loan is for more than amount needed to pay off old loan.
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106. Summary Types of Mortgage Loans
Purchase money mortgage
Budget mortgage
Package mortgage
Construction loan
Blanket mortgage
Participation mortgage
Wraparound mortgage
Open-end mortgage
Home equity loan
Reverse mortgage
Subprime loan
Refinancing
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