Chapter 10 - Ethics in Mortgage Lending

Question 0

Advertisement

Answer 0

A commercial message in any medium that promotes, directly or indirectly, a credit transaction.

Question 1

Abusive Act

Answer 1

Action that materially interferes with a consumer’s ability to understand the product or service.

Question 2

Bona Fide Offer

Answer 2

An offer made in good faith with no element of fraud.

Question 3

Consumer Financial Protection Bureau (CFPB)

Answer 3

Independent agency within the Federal Reserve with rulemaking and enforcement authority over many consumer financial laws. Established under Title X of the Dodd-Frank Act.

Question 4

Disparate Impact

Answer 4

A law that may be neutral on its face, but has a discriminatory effect since it has a greater adverse impact on one group than on others.

Question 5

Dodd-Frank Wall Street Reform and Consumer Protection Act

Answer 5

Federal law with the purpose to promote the financial stability of the United States by improving accountability and transparency in the financial system. It established the Consumer Financial Protection Bureau (CFPB) and new standards concerning a wide range of mortgage lending practices, including compensation of mortgage originators, federal mortgage disclosures, and mortgage servicing.

Question 6

Dower or Curtesy Rights

Answer 6

Interest in the real estate of a decease spouse given by law to the surviving partner.

Question 7

Exclusionary Zoning Laws

Answer 7

Laws that have the effect of denying housing to minorities or other protected classes.

Question 8

Federal Home Loan Mortgage Corporation (Freddie Mac)

Answer 8

Nonprofit, federally chartered institution (now privately owned) that functions as buyer and seller of residential mortgages.

Question 9

Federal National Mortgage Association (Fannie Mae)

Answer 9

The nation’s largest, privately owned, investor in residential mortgages.

Question 10

Identity Theft

Answer 10

Condition when someone uses another person’s identity on a loan application without the knowledge of the rightful property owner.

Question 11

Referral

Answer 11

Oral or written action directed to a person, which has the effect of affirmatively influencing the selection of a settlement services provider.

Question 12

Subprime Loans

Answer 12

Loans that have more risks than allowed in the conforming market. Also called B-C loans or B-C credit.

Question 13

Thing of Value

Answer 13

Any payment, advance, funds, loan, service, or other consideration.