ALL TRUE OR FALSE QUESTION:
1. Dime Community Bank continues to face sustained competition for the origination of multifamily residential and commercial real estate loans, which together comprised 99% of the Bank's loan portfolio at December 31, 2016.
2. Dime Community Bank’s largest single asset type is the adjustable-rate multifamily residential loan.?
3. In order to reduce the risk to the owners of Dime Community Bancshares the managers of Dime Community Bank will begin foreclosure proceedings as soon as a borrower is more than ten days’ delinquent on a loan contract.
4. Management of Dime Community Bank are committed to making loans to subprime borrowers in an effort to stimulate the New York City economy
5. Of the total mortgage loan portfolio outstanding on December 31, 2016, $4.75 billion, or 84.38%, were ARMs and $878.7 million, or 15.62%, were fixed-rate loans.
6. A weak retail sector has a negative impact on Forest City Enterprises.
7. As of December 31, 2015, Forest City Enterprises leased over 9 million square feet of retail space.
8. As of December 31, 2015, Regal Entertainment Group accounted for over 3% of Forest City Enterprises’ leased retail space.
9. Forest City Enterprises leases properties to the GAP Inc. and to AMC Entertainment Inc
10. Forest City Enterprises sold properties during 2015 and 2016 to increase balance sheet liquidity.
11. Forest City Enterprises uses nonrecourse mortgages to finance certain of its properties.
12. Forest City Enterprises, Inc. rents the Barclays Center, a 670,000 square foot world-class arena and home to the Nets from the City of New York.
13. In order to qualify as a REIT, Forest City Realty Trust must ensure that at the end of each calendar quarter, at least 75% of the value of its assets consist of cash, cash items, government securities and qualified real estate assets.
14. Once of the risks that Forest City Enterprises faces is “An inability to secure sufficient financing on favorable terms, or at all, including an inability to refinance or extend construction loans”.
15. Over the year ending 12/31/2015 Forest City spent over $70 million for construction and development costs in the B2 BKLYN project.
16. The financial condition of tenants, including the extent of bankruptcies and defaults they experience has little impact on the value of Forest City Realty Trust because Forest City owns the properties and can simply lease them to other tenants.
17. The tenant that leased the largest percent of office space offered by Forest City Enterprises, as of December 31st, 2014, was the City of New York.
18. If you mortgage your home and then default on the mortgage loan the lender may be able to foreclose on your home.
19. Even if you default on your mortgage loan the lender can not begin foreclosure proceedings until the Federal government approves.
20. The mortgagee can begin preparing the default notice/foreclosure proceedings on your home as early as 60 days after you have missed your first payment.
21. In most foreclosure cases the home is sold in a public auction.
22. If you are unable to continue keeping your mortgage current and anticipate default you may be able to work with your lender to execute a short sale of your home. In this case you would sell your home and use the proceeds to pay-off the balance of your mortgage. If you owe more than the balance of your mortgage a short sale can protect your credit rating. The short sale gives you an exit strategy that has been negotiated with the lender rather than forced on you by the lender.
23. Since 2008 the foreclosure laws have been uniform across all fifty states of the United States.
24. You are interested in the property that is for sale at 517 39th St, Brooklyn, NY 11232. You are going to offer the asking price as listed on loopnet. The net operating income can be calculated based on the stated cap rate of 5% and the asking price. Your cost of capital is 15%. You will use the cost of capital as your discount rate in your net present value calculation. You plan to operate the hotel for 20 years and then sell it for twice the value you paid. Your investment has a positive net present value?
25. As interest rates increase this should create downward pressure on property values since he discount rate in the NPV calculation represents an investor’s cost of capital.