Fair Housing Act Flashcards
The FHA can assess penalties for violations of the act. Who may be assessed penalties for violating the Fair Housing Act?
A. All parties, bank and individual(s), involved in the FHA violation can be penalized
B. There are no penalties for the bank or individuals involved in the FHA violation
C. The bank involved in the FHA violation can be penalized; individuals cannot be penalized
D. The individual(s) involved in the FHA violation can be penalized; banks cannot be penalized
The correct answer is a. B is incorrect because there may be penalties for violation of the FHA. C and D are incorrect because penalties can be assessed to the bank and person(s) involved in the violation.
What is an example of the type of record keeping and reporting information that regulations implementing the Fair Housing Act may require of a financial institution?
A. Number of residential real estate applications received, declined, and closed
B. Number of home equity lines of credit made by the financial institution
C. Number of home improvement loans made by the financial institution
D. Number of auto loans made by the financial institution
The correct answer is a. B and C are incorrect because they are not all-inclusive. The record keeping requirements are for all residential real estate related loans. D is incorrect because auto loans are not residential real estate loans.
What is disparate impact?
A. Disparate impact is a legal doctrine which means that a policy or practice may be considered discriminatory if it has a disproportionate ‘‘adverse impact’’ against any prohibited bases
B. Disparate impact is treating one person in a protected class differently than another person
C. Disparate impact is the same as redlining
D. Disparate impact occurs when the bank does not have the Equal Housing Lender poster posted in the lobby
The correct answer is a. B is incorrect because the practice described is considered discrimination, not disparate impact. C is incorrect because redlining is discrimination against an applicant based on the predominant racial or other prohibited bases characteristics of the persons residing in a particular geographic area—e.g., neighborhood, city or other area. D is incorrect because the poster is required by the FHA but the poster has no relation to disparate impact.
Financial institutions must follow the FHA advertising requirements. Which option correctly describes two ways a financial institution can comply with the FHA advertising requirements?
A. Disclose FDIC membership in all real estate related advertisements; include the phrase ‘‘fair lending provider’’ in all bank oral advertisements
B. Include the phrase ‘‘fair lending provider’’ in all bank oral advertisements; include the phrase ‘‘an equal opportunity lender’’ in all residential real estate related bank oral advertisements
C. Include the phrase ‘‘an equal housing lender’’ in all residential real estate related bank oral advertisements; include the Fair Housing logo in all residential real estate related bank advertisements
D. Include the Fair Housing logo in all residential real estate related bank advertisements; disclose FDIC membership in all real estate related advertisements
The correct answer is c. A is incorrect because disclosure of FDIC membership is not a FHA advertising requirement and A is also incorrect because the phrase, ‘‘fair lending provider’’ is not a FHA requirement for oral residential real estate related bank advertisements. B is incorrect because the phrase, ‘‘fair lending provider’’ is not a FHA requirement for oral residential real estate related bank advertisements. D is incorrect because disclosure of FDIC membership is not a FHA advertising requirement.
There are specific requirements for the Fair Housing Act poster. What is one requirement for the poster?
A. It must be available for clients to view if they ask for Equal Housing information
B. It must be posted at all entrances to the financial institution
C. It must be displayed on the real estate loan officer’s desk
D. It must be displayed in the financial institution’s lobby
The correct answer is d. A, B, and C are incorrect because the Fair Housing poster must be posted in the financial institution’s lobby
What is the primary purpose of the Fair Housing Act?
A. Provide housing-related credit without discrimination against a person’s race, color, national origin, religion, sex, handicap, or familial status
B. Make all housing prices fair and equitable
C. Allow redlining on a prohibited bases as an acceptable practice for residential real estate lending
D. Regulate the value of the residential real estate market
The correct answer is a. B is incorrect because housing prices are not part of FHA’s purpose. C is incorrect because redlining on a prohibited bases is a practice that violates the Fair Housing Act’s requirements. D is incorrect because the FHA does not regulate the value of the real estate market.
FHA requires which phrase to be included in radio advertisements for real estate loans?
A. An equal lender
B. A nondiscriminatory lender
C. Equal housing lender
D. An equitable lender
The correct answer is c. A, B, and D are incorrect because the phrase is ‘‘equal housing lender.’’
The Fair Housing Act includes coverage categories. Which option correctly lists three categories of the Fair Housing Act’s coverage?
A. Discrimination, advertising, and record keeping
B. Advertising, record keeping, and housing safety
C. Discrimination, record keeping, and interest rates
D. Advertising, discrimination, and housing safety
The correct answer is a. B is incorrect because housing safety is not a coverage of the FHA. C is incorrect because interest rate regulation is not part of the FHA. D is incorrect because housing safety is not covered under the FHA.
The Fair Housing Act prohibits discrimination based on which factors by any person whose business includes engaging in residential real estate-related transactions?
A. Race, color, religion, sex, national origin, familial status, or handicap
B. Unfair and deceptive acts and practices in real-estate lending
C. FHA List of Discriminatory Actions against governmental agencies
D. Ability to repay under the Truth in Lending Act and Regulation Z
The correct answer is a. B, C, and D are incorrect because the Fair Housing Act does not prohibit discrimination based on these factors.
