Additional Government Influence

Question 1

What is the purpose of the Farm Credit System and what agency regulates their activities?

Answer 1

Farm Credit System serves the unique financial needs of farmers, ranchers, producers/harvesters of agricultural products and rural homeowners by providing loans for real estate, operating costs and rural homes. They also offer credit-related life insurance and crop insurance. FCS is regulated by the Farm Credit Administration.

Question 2

What kinds of programs does USDA Rural Development support?

Answer 2

Supports essential public facilities and services, such as water and sewer systems, housing, health clinics, emergency service facilities and electric and telephone service.
Promotes economic development by supporting loans to businesses through banks and community-managed lending pools.
Offers technical assistance and information to help agricultural and other cooperatives get started and improve the effectiveness of their member services

Question 3

What are the three home loan programs offered by TSAHC?

Answer 3

Professional Educators Program
Homes for Texas Heroes Program
Home Sweet Texas Home Loan Program

Question 4

What does the Mortgage Credit Certificate (MCC) Program do?

Answer 4

Allows qualified homebuyers to take a portion of the annual interest paid on the mortgage as a tax credit, up to $2,000, each year they occupy the home as their principal residence.

Question 5

List three major HUD activities

Answer 5

Supervising the Federal Housing Administration.
Regulating Ginnie Mae.
Overseeing (but not regulating) the operations of Freddie Mac and Fannie Mae.

Question 6

To what does the Interstate Land Sales Act apply and what does it require?

Answer 6

The Act applies to subdivisions of undeveloped land sold or offered for sale or lease through interstate commerce. It requires submission of a statement of record describing a proposed subdivision in detail, accompanied by maps, contract documents and certifications that fully disclose relevant information about the subdivision.

Question 7

What did the Colonias Fair Land Sales Act do?

Answer 7

Protects those who must rely on contracts for deed to finance property by requiring developers to record the contract and counties to keep a record of contracts for deed. It also requires developers to provide a statement of available services, such as water, wastewater and electricity, and whether the property is located in a floodplain.

Question 8

Explain HUD’s Good Neighbor Next Door home purchase program.

Answer 8

In this program for law enforcement officers, pre-Kindergarten through 12th grade teachers, and firefighters/emergency medical technicians, HUD offers a discount of 50% from the list price of a home. In return, the buyer must commit to live in the property for 36 months as his or her sole residence.

Question 9

What does ECOA prohibit?

Answer 9

Discrimination against applicants on the basis of race, color, religion, national origin, sex, marital status, age or dependency on public assistance

Question 10

What is the right to rescind and what is not covered by this rule?

Answer 10

The borrower has a right to cancel the transaction by notifying the lender within three days. This does not apply to residential first mortgage loans

Question 11

Why did Congress pass the Community Reinvestment Act?

Answer 11

To prevent redlining and to encourage banks and thrifts to help meet the credit needs of all segments of their communities, including low- and moderate-income neighborhoods.

Question 12

What kinds of costs are allowed by the Texas Industry Development (TID) Loan Program?

Answer 12

Costs include acquisition, construction, reconstruction, improvement and expansion of land, buildings and improvements (including rights of way, property rights and easements), machinery and equipment, financing charges, necessary reserve funds, engineering and legal services.

Question 13

The Federal Farm Loan Act of 1916

Answer 13

is a United States federal law which established 12 regional Farm Loan Banks to serve members of Farm Loan Associations. Farmers could borrow up to 50% of the value of their land and 20% of the value of their improvements.

Question 14

The Farm Credit System (FCS)

Answer 14

was inaugurated under the Federal Farm Loan Act. It is designed to serve the unique financial needs of farmers, ranchers, producers and harvesters of agricultural products. It also assists rural homeowners and owners of some types of farm-related businesses. The banks in the FCS provide loans for real estate, operating costs and rural homes. They also offer credit-related life insurance and crop insurance.

Question 15

The Farm Credit Administration (FCA)

Answer 15

is an independent federal agency responsible for regulating and examining the banks, associations, and related entities of the Farm Credit System (FCS).

Question 16

The US Department of Agriculture Rural Development Program (USDA Rural Development)

Answer 16

helps rural individuals, communities and businesses obtain financial and technical assistance to address their diverse and unique needs. USDA Rural Development programs support such essential public facilities and services as water and sewer systems, housing, health clinics, emergency service facilities and electric and telephone service.

Question 17

The Texas State Affordable Housing Corporation (TSAHC)

Answer 17

provides a variety of affordable housing programs that range from First-time Homebuyer Programs for individuals and families to assisting in the development of affordable multifamily housing.

Question 18

The Department of Housing and Urban Development (HUD)

Answer 18

is the principal federal agency responsible for programs concerned with America’s housing needs, fair housing opportunities, and improvement and development of our communities. HUD programs include urban renewal, public housing, model cities, rehabilitation loans, FHA-subsidy programs and water and sewer grants.

Question 19

The Interstate Land Sales Full Disclosure Act (Title XIV of the Housing and Urban Development Act of 1968)

Answer 19

authorizes a nationwide program of registration of subdivisions marketed in interstate commerce. The Act requires submission of a statement of record describing a proposed subdivision in detail, accompanied by maps, contract documents and certifications designed to fully disclose relevant information about the subdivision.

Question 20

The Community Development Block Grant Program (CDBG)

Answer 20

is a flexible program that provides communities with resources to address a wide range of unique community development needs. Begun in 1974, the CDBG program is one of the longest continuously run programs at HUD. The CDBG program provides annual grants on a formula basis to general units of local government and States.

Question 21

The Public Housing Development program

Answer 21

provides Federal grants to local public housing authorities (PHAs) to develop housing for low-income families that cannot afford housing in the private market.

Question 22

The Good Neighbor Next Door program

Answer 22

offers a discount of 50% from the list price of a home to law enforcement officers, pre-Kindergarten through 12th grade teachers, and firefighters/emergency medical technicians. In return, the buyer must commit to live in the property for 36 months as his or her sole residence.
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Question 23

The Hurricane Discount Home Sales program

Answer 23

offers HUD homes for sale at a discount to evacuees displaced by Hurricanes Katrina, Rita or Wilma. Evacuees can purchase these homes at a 10% discount from the appraised value of the home. In addition, HUD will pay up to 5% of the purchaser’s reasonable and customary closing costs.

Question 24

Congress established the Section 184 Indian Housing Loan Guarantee Program to

Answer 24

offer home ownership, property rehabilitation, and new construction opportunities for eligible tribes, Indian Housing Authorities and Native American individuals and families wanting to own a home on trust land or land located in an approved Indian or Alaska Native area.

Question 25

The Texas Industry Development (TID) Loan Program

Answer 25

supports eligible tax-exempt public purpose projects that stimulate economic development within the community.

Question 26

The State of Texas Industrial Revenue Bond Program (IRB)

Answer 26

is designed to provide tax-exempt or taxable financing for eligible industrial or manufacturing projects.

Question 27

The Texas Military Value Revolving Loan Fund

Answer 27

assists defense communities in enhancing the military value of a military facility in their area, provides financial assistance to defense communities for job-creating economic development projects, and provides financial assistance to defense communities for an infrastructure project to accommodate new or expanded military missions resulting from a base realignment and closure.