Fair Housing Act and NCUA Parts 701,31,722, and 701.21 Flashcards
The Fair Housing Act prohibits discrimination in real estate-related lending on what factors?
Race, color, national origin, religion, handicap, familial status and gender.
What is Racial Steering?
intentionally guiding potential home buyers away
from or to a specific area based on their race.
What is Redlining?
the practice of delineating a geographic area on a map of a community as a poor risk area because of a concentration of minorities and/or low-income households.
What is Excessively low appraisals?
a practice similar to redlining where the appraisal amount is based on the race of the applicant.
What is Racially exclusive image?
creating the image that a particular race is
preferred for loan applicants.
What is Discouraging applications?
a practice that has the effect of discouraging or denying credit applications based on any of the prohibited bases.
What is Excessively burdensome standards?
qualification standards that have the effect of denying loans to minority applicants.
What is more onerous terms or conditions?
applying harsher terms and conditions for minority loan applicants.
What is practices that discriminate against women?
practices or procedures that make it more difficult for female applicants to qualify for credit on their own merits.
Penalties for FHA violations are generally civil. Under what conditions would a violation be considered a criminal offense?
If there is evidence of various forms of interference with efforts to enforce FHA such as altering or withholding evidence or forcefully intimidating persons seeking to exercise their rights under the FHA.
Under what conditions are the results of a self-test considered privileged information?
The self-test must:
* be thorough enough to determine the level of effectiveness of compliance with FHA requirements.
* identify any possible FHA violations and take appropriate corrective action to address identified violations.
* identify policies and practices that could be the likely cause of the violations.
* assess the extent and scope of any likely violation.
NCUA Part 701.31 - Nondiscrimination Requirements lists five factors that cannot be considered in connection with a real estate-related loan. List these factors.
Age or location of the dwelling; zip code of the loan applicant’s current
residence; applicant’s previous home ownership; age or location of other dwellings in the neighborhood of the dwelling the loan is for; and the income level of the residents in the neighborhood of the dwelling the loan is for.
All credit unions are required to display the Fair Housing Poster or a Fair Housing notice. Where must the poster and/or notice be displayed?
In a clearly visible manner in the credit union’s lobby and other areas where real estate-related loans are made.
NCUA sets minimum standards for appraisals in the Rules and Regulations Part 722. List three of the five standards.
Conform to generally accepted appraisal standards of the Uniform Standards of Professional Appraisal Practice; be in writing and contain information and analysis to support the loan decision; analyze and report appropriate deductions and discounts; be based on NCUA’s definition of market value; and be performed by either a state licensed or certified appraiser as appropriate.
