Federal and State Laws Flashcards
You are about to buy a house that has been built prior to 1978. What disclosure should be given to you by the seller?
A) A lead-based paint disclosure form
B) A truth and lending statement
C) A HUD one closing statement
D) A miranda warning
A) A lead-based paint disclosure form
Federal regulations require that for any house built prior to 1978, a homeowner must disclose any known lead-based paint hazard. The seller is not required to give truth and lending statements or the HUD one closing statement. A miranda warning is given by the police (upon arrest), outlining the person’s right to an attorney, etc.
The federal Fair Housing Act contained in Title VIll of the Civil Rights Act of 1968 prohibits discrimination based on:
A) Religion, race, age, familial status or handicap status
B) Race, color, religion, age, or national origin
C) Race, color, religion, sex, national origin, familial status or handicap status
D) Race or age
C) Race, color, religion, sex, national origin, familial status or handicap status
The Fair Housing Act (as amended in 1968) prohibits discrimination based on race, color, religion, sex, national origin, familial status or handicap status when selling or renting residential property.
Which law requires lenders to furnish borrowers with a current copy of a special HUD information booklet?
A) Truth-in-Lending Act
B) Real Estate Settlement Procedures Act
C) Fair Housing and Lending Act
D) Consumer Credit Protection Act
B) Real Estate Settlement Procedures Act
As part of consumer protection under RESPA, lenders are required to give all prospective borrowers a current copy of a special HUD information booklet at time of application or within three business days.
A real estate office instructs the sales associates to send all Spanish-speaking clients to a beautiful new subdivision with Spanish style. This is an example of:
A) Alienation
B) Subordination
C) Blockbusting
D) Steering
D) Steering
Channeling protected-class home seekers away from areas that are not mixed with that class into areas that are is commonly known as steering.
The Real Estate Settlement Procedures Act (RESPA) was enacted to:
A) Establish a maximum cost for settlement charges (closing costs)
B) Ensure that buyers are given information regarding the amount and types of expenses they can expect at closing
C) Inform sellers regarding the amount and types of expenses at closing
D) Establish a minimum cost for all closing items
B) Ensure that buyers are given information regarding the amount and types of expenses they can expect at closing
Enacted in 1974 to ensure buyers are informed about closing expenses, RESPA requires lenders to estimate buyers’ settlement costs at the time of application (or within 3 business days thereafter).
A measure of the cost of credit, expressed as a nominal yearly rate. It relates the amount and timing of value received by the consumer to the amount and timing of payments made. The APR is often considered to be the finance charge expressed as a percentage. However, two loans could require the same finance charge and still have different APRs because of differing values of the amount financed or of payment schedules.
Annual percentage rate (APR)
An act contained in Title VIII of the Civil Rights Act of 1968 that created protected classes of people and prohibits discrimination when selling or renting residential property when based on race, color, religion, sex, national origin, familial status, or handicap status.
Fair Housing Act
As defined in the Fair Housing Act, a physical or mental impairment that substantially limits one or more major life activities.
Handicap status
Private entities that own, lease, lease to, or operate facilities such as restaurants, retail stores, hotels, movie theaters, private schools, convention centers, doctor’s offices, homeless shelters, etc.
public accommodations
A disclosure statement given to borrowers that discloses whether the lender intends to service the loan or transfer it to another lender or servicing company. Given at the time of the time of the mortgage application or three business days thereafter.
servicing disclosure statement
Channel homebuyers to or away from particular neighborhoods because they are members of a protected class.
Steering
Part of the Consumer Protection Act. Its main purpose is to ensure that borrowers are given meaningful information with respect to the cost of credit so that consumers can compare the various credit terms available.
Truth in Lending Act
This act requires disclosures at the time of a mortgage loan application or within three business days. Disclosures include APR, finance charges, amount financed, and total payments.
RESPA
A federal law designed to protect and preserve coastal areas.
Coastal Zone Management Act
The case that upheld the Civil Rights act of 1866.
Jones vs. Mayer
