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INSTITUTIONAL LENDERS - Cengage Learning

TM 31. Thomson Learning CHAPTER 2. INSTITUTIONAL LENDERS . PREVIEW. An INSTITUTIONAL lender , also known as a financial intermediary, is any depository that pools funds of clients and depositors and invests them into real estate loans. The lending policies of these institutions have a profound impact on the real estate market . In California, INSTITUTIONAL LENDERS include savings banks (former savings and loan associations), commercial banks, and life insurance companies. They are differentiated from noninstitutional LENDERS , such as individual or private LENDERS , in the following important ways: INSTITUTIONAL LENDERS are highly regulated and closely supervised by federal and state agencies, whereas private LENDERS are relatively free of regulations.

• Many institutional lenders qualify to make Department of Veterans Affairs (DVA) and Federal Housing Administration (FHA) loans. • There is an active secondary market for institutional loans, as

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