Ethics (FHA, ECOA-B, HMDA, CRIA77)

Question 1

What does the Fair Housing Act do?

Answer 1

It prohibits discrimination when buying/selling/renting residential properties.

Question 2

According to the Fair Housing Act, how long does a borrower have to bring forth complaints?

Answer 2

one year

Question 3

Where does a borrower bring forth discrimination complaints?

Answer 3

HUD

Question 4

What does HUD stand for?

Answer 4

Department of Housing and Urban Development

Question 5

What does ECOA stand for?

Answer 5

Equal Credit Opportunity Act

Question 6

What regulation is the Equal Credit Opportunity Act?

Answer 6

Regulation B

Question 7

What is the goal of ECOA?

Answer 7

To prohibit discrimination when lending money/extending credit

Question 8

ECOA states that all sources of income must be treated ________.

Answer 8

equally

Question 9

While making an income decision in accordance with Regulation B, what 3 things may you base decision on?

Answer 9

• stability
• durability
• adequacy of income (NOT SOURCE!)

Question 10

Under ECOA, can one inquire as to source of downpayment?

Answer 10

YES!

Question 11

Under ECOA, can one inquire as to continuance on disability?

Answer 11

NO!

Question 12

The borrower always has the right to ________, including appraisals.

Answer 12

challenge

Question 13

Where is the “right to challenge” disclosed?

Answer 13

On the AAN

Question 14

What does AAN stand for?

Answer 14

Adverse Action Notice

Question 15

Within how many days must a creditor “decision” a file?

Answer 15

30 days

Question 16

When does the 30 day “clock” start to send disclosure to borrowers?

Answer 16

at application

Question 17

What can be sent to the borrower 30 days after application as “disclosure”?

Answer 17

NOAT

Question 18

What does NOAT stand for?

Answer 18

Notice of Action Taken

Question 19

What are the only acceptable ways of referring to a person’s marital status?

Answer 19

Married
Unmarried
Separated

Question 20

Can an MLO ever discourage someone from applying for credit?

Answer 20

NO! Never.

Question 21

What are the Equal Housing Logos outlined in Regulation B?

Answer 21

• Lender: “Equal Housing Lender”

- MLO: “Equal Housing Opportunity

Question 22

What does HMDA stand for?

Answer 22

Home Mortgage Disclosure Act

Question 23

What is Section X of 1003 (URLA)?

Answer 23

Government Monitoring Information

Question 24

What does the Home Mortgage Disclosure Act do?

Answer 24

HMDA evaluates lending practices to identify discriminatory patterns.

Question 25

How frequently AND WHEN is the LAR reported?

Answer 25

Reported annually by March 1st

Question 26

What does LAR stand for?

Answer 26

Loan Application Registar

Question 27

What three primary categories are evaluated under HMDA?

Answer 27

• race
• ethnicity
• gender

Question 28

If borrower chooses NOT to provide info for a SECONDARY category, what should the lender do?

Answer 28

Leave it blank.

Question 29

According to HMDA, what is the definition of DWELLING?

Answer 29

• In addition to 1-4 SFD, includes 5+ unit properties, apartments, condos
• Still does NOT include commercial, agricultural, hotel, houseboat, RV

Question 30

What did the Community Reinvestment Act of 1977 do?

Answer 30

Make banks eligible to receive bonus payments for not redlining.

Question 31

If borrower chooses NOT to provide info for a PRIMARY category, what should the lender do?

Answer 31

• in person: best estimate based on visual and last name

- on phone/internet: leave blank