FHA Flashcards
Fair Housing Act
The FHA became law in…?
A. 1999.
B. 1954.
C. 1958.
D. 1968.
Correct answer: D
D is correct, as FHA was signed into law on the 11th of April 1968 as part
of the momentous Civil Rights Act of 1968. It improved housing laws of
the mid-1960s giving house renters, buyers, and sellers more rights through its policies against discrimination.
What is the primary aim of the FHA?
A. To protect house owners from volatile renters.
B. Protect house buyers, renters, and sellers in housing from discrimination.
C. The implementation of rent caps for private and public rentals.
D. An outline for a fair housing agreement that house owners must follow if they sell or rent.
Correct answer: B
B is correct, as FHA advocates for the legal protection of buyer, seller, and renter rights in the housing market based on discrimination. They are protected by discrimination against race, color, religion, sex (gender and sexual assault), nationality, family, and disability.
In 1988, the FHA was amended to include what?
A. The addition of a prisoner sentence to those that break the law.
B. The addition of disability and family status to the definition of
discrimination.
C. A reduction in fines.
D. A & C
Correct answer: D
D is correct, as the 1988 amendment to the FHA increased the punishments for defying the law to include a prison sentence but a reduction in fines. The logic behind this was that if the rich could pay off their fines easily, they needed more equal punishments for all classes. Repeat offenders also got harsher penalties.
FHA is overseen at a federal level with varied enforcement
punishments.
A. True
B. False
Correct answer: A
A is correct, as FHA is controlled at a federal level; thus, punishments vary across the board depending on the state.
FHA is controlled by who?
A. The President.
B. House owner unions
C. Dept. of Housing and Urban
Development (HUD).
D. Congress
Correct answer: C
C is correct, as HUD oversees the operations of the FHA and is the
department where crimes are reported, and cases are investigated.
FHA laws can be completely changed at a state level as they see fit.
A. False
B. True
Correct answer: A
A is correct; as FHA laws, although some minor things may be added in
each state of their choosing, including the exact fine or prison time offenders serve, they cannot wholly rewrite or delete parts of the law approved by Congress ultimately.
What is the punishment for unlawful FHA practice?
A. Prison time.
B. Fines.
C. Added to an official register of offenders.
D. A & B.
Correct answer: D
D is correct because penalties for going against FHA include a fine, prison time, or both.
What is not an example of unlawful FHA?
A. A renter is refused a home because they are British.
B. A house seller sells their property to a friend for a good deal.
C. A prospective buyer is refused a house because of their gay relationship.
D. Being refused a room one about to move into when the owner saw you were a woman.
Correct answer: B
B is correct because a house seller selling a property to a friend is not
against the law and is also unrelated to FHA based on the context provided. A is a clear example of unlawful FHA because the house owner refuses a
renter application based on nationality. C is unlawful FHA because a gay buyer is refused a home because they are gay. D is unlawful FHA because an owner refused a renter because they were women.
Are those that identify as part of the LGBTQ+ community protected
by FHA?
A. Yes
B. No
Correct answer: A
A is correct, as since 2021, the FHA has been extended to protect people based on sexuality and gender identity.
FHA was heavily inspired by what 1964 law?
A. The first National Housing Regulations Act.
B. The Civil Rights Act.
C. The House Owners Unite Act.
D. The Healthy Homes Act.
Correct answer: B
B is correct, as FHA was born during the revolution of the Civil Rights
Movement of the 1960s. The 1964 Civil Rights Act was a foundational law that has become a founding piece of legislation to many laws fighting for the rights and protection of discriminated groups. FHA fights for a policy that anyone should have a home and not be made to feel inferior.
What is NOT an example of FHA policy?
A. Borrowers pay extra mortgage insurance premiums to cover potential lending losses.
B. FHA loans can purchase multi-unit properties as rental income for the borrower.
C. Homeowners facing hardships are offered assistance programs.
D. Borrowers can get short-term loans with choice of repayment amounts.
Correct answer: D
D is correct, as this is not an FHA policy. This short-term loan model is
commonly seen in mortgages like balloon loans which are non-conventional
loans that are not suited for those that qualify for an FHA loan as they are risky and short-term. A is a prime example of an FHA policy which covers the backs of lenders due to the riskier nature of applicants that qualify for these loans, through extra insurance fees that borrowers must pay based on the down payment percentage they make. B is one of the great benefits of getting an FHA loan as they help support borrowers and even get a kick-start in the rental business through the purchase of multi-unit properties. C represents the backbone of the FHA policy which offers mortgage loans to
those that are struggling and who won’t otherwise be able to get ‘normal’ loans.
What is an example of someone that wouldn’t qualify for an FHA
loan?
A. A war veteran and his family.
B. A poor farmer that has lost their home in a fire.
C. A low income and credit scorer that wants to buy a multi-unit property.
D. An average Joe that has a good credit score and income.
Correct answer: D
D is correct, as most ‘average Joes’ wouldn’t qualify for an FHA loan
unless they met certain criteria. Otherwise, they are best suited to apply for a conventional loan which is the most common mortgage type offered by private lenders offering long repayment periods and budgeting opportunities. A, B and C on the other hand show great examples of people that qualify for an FHA loan.
