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.
Match the prohibited activities with the correct definition.
1. Racial Steering
2. Redlining
3. Excessively low appraisals
4. Racially exclusive image
5. Discouraging applications
6. Excessively burdensome standards
7. More onerous terms or conditions
8. Practices that discriminate against women.
a. a practice that has the effect of discouraging or
denying credit applications based on any of the
prohibited bases.
b. a practice similar to redlining where the
appraisal amount is based on the race of the
applicant.
c. practices or procedures that make it more
difficult for female applicants to qualify for
credit on their own merits.
d. intentionally guiding potential home buyers away
from or to a specific area based on their race.
e. creating the image that a particular race is
preferred for loan applicants.
f. 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.
g. qualification standards that have the effect of
denying loans to minority applicants.
h. applying harsher terms and conditions for
minority loan applicants.
The eight prohibited activities are:
Racial steering — d
Redlining — f
Excessively low appraisals — b
Racially exclusively image — e
Discouraging applications — a
Excessively burdensome standards — g
More onerous terms or conditions — h
Practices that discriminate against women — c
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 resident’s 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.
