REAE 5382: Real Estate Securities

REAE 5382: SEMINAR IN REAL ESTATE SECURITIES
(cross-listed with FINA 5382)

SPRING 2001

SYLLABUS
W 7:00-9:50 PM
ROOM 610 B

Instructor:      J. Andrew Hansz, Ph.D., CFA

Office:             619 Business Building

Office Hours: MWF 11:00 – 11:45 AM and by appointment.

Phone:  (817) 272-5843

E-mail:            hansz@uta.edu

Course Description:

Seminar in Real Estate Securities.  This course provides an analysis of the operations of the secondary mortgage markets as viewed by individual and institutional investors.  Mortgage pass through securities, mortgage-backed bonds, estimation of prepayment rates for mortgage securities, price and interest rate risk, lending strategies, credit ratings, and related topics are covered.

Prerequisites:

• REAE 5311, the introductory class in real estate.  REAE 5319, Real Estate Finance recommended.  See graduate bulletin.

Course Format:

• Discussion/Seminar – Specific text readings and cases will be assigned for each class period.  Class will be conducted in a seminar format and it is expected that each assignment will be read prior to class and you will be ready to discuss the material in class.

• Lectures and Assignments – Lecturing will be minimized in this seminar format.

• Examinations – Two midterm exams and a final exam.

• Case study – A real estate investment trust case study will be assigned, discussed in class and graded.

• Final Paper/Presentation investigating a topic in Real Estate Securities.

• Attendance and participation is required.  Due to the seminar format of this course, class discussion and contribution is critical.  Attendance will be taken.

Required Textbooks:

• Mortgage and Mortgage-Backed Securities Markets, Frank Fabozzi and Franco Modigliani, Harvard Business School Press, 1992.

• Real Estate Finance and Investments, William B. Brueggeman and Jeffrey D. Fisher, Irwin, 1997. (chapters 17-21; also reference chapters 4-7)

Calculators and Spreadsheet:

A financial calculator (HP 10-B or equivalent) and a spreadsheet (Excel or equivalent) are required.  The calculator must be able to calculate Internal Rate of Return (IRR) and Net Present Value   (NPV).  This means that the calculator must be able to deal with entry of uneven cash flows.  Check the manual before you buy a calculator.  You are responsible for learning the keystrokes.  You may NOT store mathematical formulas and/or text for use on exams (see ‘academic honesty’ section).   It is also assumed that you have basic spreadsheet skills.  No Palm Pilots or similar devices may be used during the exams.

Grading:

Generally, the grading scale used by the Instructor can be:

The instructor can apply a “curve” which could lower these ranges. 

Make-up Examination Policy:

The instructor reserves the rights to change the style, format, and content of a make-up examination. A make-up exam will be given if the student has a reasonable, verifiable excuse.  However, students should not expect to take more than one make-up exam.  The make-up exam must be completed before the end of the week in which the original exam was scheduled.  Once a student has taken an exam, a make-up exam cannot be given.

Policy on Attendance: 

Students are expected to attend each class and students are expected to come to each classwiththeir assignments completed.Students who must miss a class are responsible for obtaining all assignments, lecture notes, handouts, and announcements discussed in class from a classmate.  You should get to know at least one student in class.

Policy on Handing in Assignments Late:

Several homework assignments will be made during the quarter. A penalty per class period will be assessed for all assignments turned in late.  Absence from class is not a valid excuse for handing in homework assignments late.

Policy on Disruptive Classroom Behavior:

This course will be conducted in a professional manner.  Unprofessional behavior of any form in the classroom will not be tolerated.  Students can be withdrawn at the discretion of the instructor for unacceptable behavior.  Additionally, a portion of the final grade is attributed to class attitude/contribution.  This grade, made at the instructor discretion, is based on attendance and attitude during class.

Academic Honesty:

It is the philosophy of The University of Texas at Arlington that academic dishonesty is a completely unacceptable mode of conduct and will not be tolerated in any form.  All persons involved in academic dishonesty will be disciplined in accordance with University regulations and procedures.  Discipline may include suspension form the University.  You are responsible to maintain the standards of Academic Honesty included in the current UTA catalog.

Bomb Threats:

Effective April 8, 1996, the College of business Administration has adopted a policy to deal with the classroom disruption caused by bomb threats in the building.  (A) Section 22.07 of the Texas Criminal Law Statutes states that a Class A misdemeanor is punishable by (1) a fine not to exceed $4,000, (2) a jail term of not more than one year, OR (3) both such a fine and confinement. (B) If anyone is tempted to call in a bomb threat, be aware that UTA has the technology to trace phone calls. (C) Every effort will be made to avoid cancellation of presentation/tests caused by bomb threats to the Business Building.  Unannounced alternate sites will be available for these classes.  If a student who has a class with a scheduled test or presentation arrives and the building has been closed due to a bomb threat, the student should immediately check for the alternate site notice which will be posted on/near the main doors on the south side of the Business Building.  If the bomb threat is received while class is in session, your instructor will ask you to leave the building and reconvene at another location.  (D) Students who provide information leading to the successful prosecution of anyone making a bomb threat will receive one semester’s free parking in the Maverick Garage across from the Business Building.  UTA’s Crime stoppers will provide a reward to anyone providing information leading to an arrest.  To make an anonymous report, call 817-272-5245.

Withdrawing:

It is the student’s responsibility to complete the course or withdraw form the course in accordance with University regulations.  Students are strongly encouraged to verify their grade status before dropping a course after the first withdrawal date.  A student who drops a course after the first withdrawal date may receive an “F” in the course if the student is failing at the time the course is dropped.

Drop for Non-payment:

It is the policy of the University of Texas at Arlington that students who have not paid by the census date and are dropped for non-payment cannot, under any circumstances, receive a grade for the course.  Therefore, a student dropped for non-payment whom continues to attend the course will not receive a grade for that course.  Emergency loans are available to help students pay tuition and fees. Students can apply for emergency loans by going to the Emergency Tuition Loan Distribution Center at E.H. Hereford University Center (near the southwest entrance.).

Student Evaluation of Teaching:

The following appears in Administrative Memorandum No. 98-5 dated August 21, 1997, from the President for academic and administrative offices. “ Beginning in Fall 1997, teaching evaluations will be conducted in every class every semester for every instructor of record”. 

Food/Drink in Classrooms:

College policy prohibits food and/or drink in classrooms and labs.  Anyone bringing food and/or drink into a classroom or lab will be required to remove such items, as directed by the class instructor or lab instructor.

Important Dates:

Classes Begin	January 16
Late Registration	January 16-17
Census Date	January 31
Last Day to Drop with “W” if failing	February 23 (undergraduates only)
Mid Semester (graduate drop policy applies)	March 9
Spring Break	March 19-25
Easter Holiday	April 13-15
Last date for undergrads to drop/withdraw	April 16 (undergraduates only)
Last Day of Classes	May 4
Final Exam Dates	May 7-11