Chapter 11: Ethics Flashcards
NAMB
National Association of Mortgage Brokers.
advertisement
a commercial message in any medium that promotes, directly or indirectly, a credit transaction. Reg Z
Regulation N
Mortgage Acts and Practices Advertising Rule, or MAPs rule, It regulates how mortgage lenders, servicers, brokers, advertising agencies and others can advertise mortgage services.
bona fide
an offer made in good faith
Civil Rights Act of 1866
prohibits public and private racial discrimination in any property transaction
Fair Housing Act
- makes it illegal to harass persons because of race, color, religion, sex, disability, familial status, or national origin.
ADA
Americans with Disabilities Act. 1990
ECOA
a federal law that ensures that all consumers are given an equal chance to obtain credit.
Regulation B
intended to prevent applicants from being discriminated against in any aspect of a credit transaction
CRA
Community Reinvestment Act. 1977. encourages financial institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound lending practices.
disparate impact
may be neutral on its face, but it has a discriminatory effect since it has a greater adverse impact on one group than on others
Actual Fraud
an intentional misrepresentation or concealment of a material fact.
Constructive Fraud
a negligent misrepresentation or concealment of a material fact.
straw buyer
someone who allows his name and personal details to be used to obtain a mortgage loan for a property he has no intention of inhabiting.
silent second
A second mortgage will not be recorded so the lender will think the buyer is putting more down
