Fair Housing Act (FHA)

Question 1

What types of transactions does the FHA apply to?

Answer 1

Applies to real estate-related transactions and housing-related credit, including the making or purchasing of loans, or the selling, brokering, or appraising of residential real propertyt

Question 2

To whom do the advertising requirements under the FHA apply?

Answer 2

All financial institutions

Question 3

What is the difference between the ECOA prohibited bases and the FHA prohibited bases?

Answer 3

FHA adds handicap and familial status

Question 4

What are the general advertising requirements under the FHA?

Answer 4

1. The Fair Housing logo must appear in all written advertisements for real estate lending.
2. All oral advertisements for real estate lending must contain a statement of nondiscrimination (e.g., Equal Housing Lender)
3. No advertising may contain any words, symbols, models or other forms of communication that express, imply or suggest a discriminatory preference or policy of exclusion
4. The FHA poster (or EHL poster) must be displayed in the institution’s lobby where deposits are taken or loans are made

Question 5

Which statute prohibits the practice of redlining?

Answer 5

The Fair Housing Act

Question 6

When does redlining occur?

Answer 6

When a lender provides unequal access to credit to protected classes in an area in which the credit seeker resides, will reside or in which the subject property to be mortgaged is located

Question 7

What is “racial steering”?

Answer 7

The act of deliberately guiding loan applicants or potential purchasers toward or away from certain types of loans or geographic areas because of race.