List of terms

1. mortgage loan - іпотечний кредит

2. real estate - нерухомість

3. developer – забудовник

4. to amortize a loan - погашати позику

5. credit union - кредитна спілка

6. package of mortgages - іпотечний портфель

7. mortgage-backed security - цінний папір, забезпечений закладною

8. asset-backed security - цінний папір, забезпечений активами

9. collateralized debt obligation - забезпечене боргове зобов'язання

10. servicing rights – право на обслуговування кредиту

11. be packaged into – бути у складі

12. hedge funds – хеджувальні фонди

13. mortgage department – відділ іпотечного кредитування

14. loan production offices – установи іпотечного кредиту

15. subsidiary- дочірня компанія

16. variety of terms and options – різні умови кредитування

17. collateral - застава

18. down payment - перший платіж по іпотечному кредиту

19. borrower qualification – вимоги до позичальника

20. loan term – строк кредиту

21. lending institution – кредитна установа

22. place a lien against the property – надавати майну статус закладного

23. attach to the title of the property – додаватися до майнових прав

24. advise – надавати інформацію

25. underlying loan - даний кредит

26. clear title – «чисті» майнові права

27. loan secured by a lien – позика забезпечена закладною

28. file notice of this lien – зареєструвати закладну

29. public recorder’s office – органи державного реєстру майнових прав

30. seize the property – вилучити (конфіскувати) майно

31. title- право власності на

32. deed- документ підтверджуючий право власності

33. title search – перевірка майнових прав

34. title company – установа, що перевіряє майновий статус

35. title insurance – страхування майнових прав

36. encumbrance – закладна, борг, зобов’язання

37. loan proceeds - позикові кошти

38. balance due on the loan – залишок до сплати по кредиту

39. moral hazard - моральна шкода

40. make up any discrepancy – усувати різницю

41. grant a loan - надавати кредит

42. qualify for- відповідати вимогам

43. gross monthly income – сукупний дохід

44. mortgage loan amortization – погашення іпотечного кредиту

45. outstanding indebtedness - існуюча заборгованість

46. outstanding principal balance – залишок по кредиту

Vocabulary practice

Exercise 1.Translate and memorize the use of prepositions in the following phrases:

1. to place a lien against something;

2. to attach a lien to the property;

3. a lien against something;

4. a title to the property;

5. a deed to the property.

Exercise 2. Translate from Ukrainian into English.

іпотечних ринках
конкурувати у фінансуванні нерухомість
отримати іпотечний кредит
основна сума та відсоткові платежі
узгоджувати умови
іпотечні брокери
відсоткова ставка по закладній
розмістити заставу
кредитна установа
ставати конкурентоспроможнім
дочірні банки
сукупний місячний дохід
вільний від обтяжень
перевищувати вартість застави
приватне іпотечне страхування
залишок основного боргу
формувати підкатегорії ринку капіталу
зробити кредит однаково доступним для всіх позичальників

Exercise 3.Translate from English into Ukrainian.

to form a subcategory
to pay smth off
to effectuate mortgage transaction
primary mortgage market
mortgage servicing rights
savings and loan institutions
loan produc­tion offices
legal and financial terms
to be pledged as security
to purchase a piece of property with a loan secured by a lien
to seize the property
a title search
the balance due on the loan
the public recorder’s office
to amortize the loan by its maturity

Exercise 4.Match the beginnings with the endings of the following phrases.

the beginnings		the endings	translation
to compete in		a)a variety of terms and options
to give the lender the right		b) full payment of the debt
to choose from		c) the outstanding indebtedness
to pro­tect the lender from		d) the value of the collateral
to pay off		e) to sell the property
to result in		f) any discrepancy
to exceed		g) real estate financing
to make up		h) financial loss

Exercise 5.Complete the text below with words and phrases from the box.

Interest rates, discount points, maturity, the lender, mortgage lifetime, long-term funds, the borrower, mortgage rate, the mortgage, the proceeds, interest pay­ments.

The inter­est rate on the loan is determined by three factors: current long-term market rates, the life (term) of______________, and the number of ____________paid.

Market rates. Long-term market rates are determined by the supply of and demand for________________, which are in turn influenced by a number of global, national, and regional factors.

Term. Longer-term mortgages have higher __________________than shorter-term mortgages. The usual _____________is either 15 or 30 years. Lenders also offer 20-year loans, though they are not as popular. Because interest-rate risk falls as the term to _______________decreases, the interest rate on the 15-year loan will be substantially less than on the 30-year loan. For exam­ple, in August, 2004, the average 30-year _________________was 6.06%, and the 15-year rate was 5.47%.

Discount points (or simply points) are ________________made at the beginning of a loan. A loan with one discount point means that ________________pays 1% of the loan amount at closing, the moment when the borrower signs the loan paper and receives _____________of the loan. In exchange for the points, ______________reduces the interest rate on the loan.

Discussion

Exercise 6.Answer the following questions.

1. How do the mortgage markets differ from the capital markets?

2. What is a mortgage?

3. What do people take mortgages for?

4. When is the mortgage loan amortized?

5. What is the primary mortgage market?

6. What are the participants of the primary mortgage market?

7. How do the mortgages usually end up?

8. What is the secondary mortgage market?

9. What is the main function of the secondary mortgage market?

10. What are the investors of the secondary mortgage market?

11. Why has the mortgage market become very competitive in recent years?

12. What influences the mortgage loan?

13. What is the mortgage interest rate?

14. What is collateral?

15. What are the loan terms?

16. How is the interest rate on the loan determined by?

17. What is the usual mortgage lifetime?

18. What does a loan with one discount point mean?

Extended vocabulary practice

Exercise 7.Choose the best alternative.

For the majority of homeowners/ houseowners, the purchase of their property is financed by a mortgage. The bank or building society which lends the money to buy a property is called a mortgage lender / giver or mortgagee. The person who borrows money in the form of a mortgage is called a mortgage borrower/ taker or mortgagor.

There are several different types of mortgage in/ on the market.

Probably the most common is a mortgage, in which the capital sum / capital price and the interest are paid in installments/ pieces over a long period (for example 25 years).

An alternative is a mortgage, in which the interest is paid, and the capital sum is repaid/ paid in another way, for example with an endowment assurance policy. With another type of mortgage, the mortgage borrower's daily/ current account is combined with her/his mortgage. Provided the current account is usually in/ with credit, this can reduce the interest repayments on / for the mortgage.

Exercise 8.Choose the best alternative.

1. Houses, bungalows, apartments, offices, shops and any other type of building you can own are called __________.

a. housing b. property c. buildings

2. The __________ are a document which proves who owns a property.

a. owner's deeds b. owner's papers c. title deeds

3. In some countries you can get a mortgage for __________ your annual salary.

a. times five b. five times c. five of

4. If a mortgage borrower ___________ the installments…

a. doesn't pay b. defaults on c. fails on

5. …the mortgage lender will eventually __________ the property.

a. retake b. take back c. repossess

6. Before a property can be repossessed, the lender must apply to a court for a __________.

a. repossession order b. repossession paper c. repossession document

7. When the lender has a repossession order, the occupants of the property can be __________.

a. evicted b. put out c. ejected

8. Generally, mortgage lenders only repossess as ____________.

a. a desperate action b. a last resort c. the final option

9. A mortgage lender can also be called a mortgagee or a __________.

a. mortgage provider b. mortgage maker c. mortgage producer

10. A mortgage borrower can also be known as a mortgagor or a __________.

a. mortgage owner b. mortgage possessor c. mortgage holder

11. To change your mortgage agreement is to __________ your property.

a. mortgage again b. remortgage c. unmortage

12. A mortgage paid over 25 years is called a __________ mortgage.

a. 25 b. 25 year c. 25 years

13. When somebody's mortgage is the most they can possible afford, you can say they are "mortgaged up to the __________".

a. hilt b. top c. head

14. If property prices go down, and your house is mortgaged for more than its current value, you have __________.

a. negative money b. negative value c. negative equity

15. After you have paid your last mortgage installment, you can say that you have __________ your mortgage.

a. paid out b. paid up c. paid off

Exercise 9.Match the phrases on the left with the alternatives on the right.

1.	apply for a loan	a.	arrange a loan
2.	set up a loan	b.	decide the borrower will never repay the loan
3.	take out a loan	c.	get a loan
4.	pay back a loan	d.	repay the loan in installments
5.	pay off a loan	e.	repay all the loan at once
6.	write off a loan	f.	ask for a loan

Exercise 10.Work in pairs. Discuss advantages and disadvantages of obtaining a mortgage loan. Make up dialogues using words and phrases given below.(The purchase of the property, to pay off a loan, the homeowner, to lend the money, a mortgage lender, the capital sum, to reduce the interest repayments, to own a property, annual salary, mortgage agreement, to apply for a loan).

Exercise 11. A number of types of mortgage loans are available in the market. Different bor­rowers may qualify for different ones. A skilled mortgage banker can help find the best type of mortgage loan for each particular situation.

a) Split into groups. Choose one piece of information out of 1-7 given below. After studying this information complete the table “Types of Mortgage Loans”.

b) Present the loan type you have studied to your group mates making the use of the table you have completed. While listening to your group mates fill in the missing information in your tables.