FHA Flashcards
All financial institutions are covered under the Fair Housing Act by prohibitions against ____________.
housing-related credit
The Fair Housing Act prohibits institutions from discrimination in any phase of a housing-related lending transactions against persons because of their:
* race
* religion
* color
* national origin
* sex (gender)
* familial status (having children under 18 living at home)
* disability
The Fair Housing Act interprets advertisements _________.
broadly
The Fair Housing Act requires that all real estate lending advertising:
* the Fair Housing logo to appear in all written advertisements
* all oral advertisements contain a statement of nondiscrimination (equal housing lender)
* refrain from communicating discriminatory preference in any way
The Fair Housing poster (or equal housing poster) must be displayed ________________.
in the institution’s lobby where deposits are taken or loans are made
The Fair Housing Act prohibits redlining. Redlining occurs when a lender:
provides unequal access to credit, or unequal terms of credit, because of prohibited characteristics of the residents of the area in which the credit seeker resides or will reside or in which the residential property to be mortgages is located.
Appraisal practices may be discriminatory if:
* the coast approach to value includes unsupported adjustments for ‘functional and economic obsolescence’
* the comparable sales approach includes inappropriate comparable or makes inappropriate adjustments
Racial Steering is prohibited. Racial steering is ___________.
the act of deliberately guiding loan applicants or potential purchasers toward or away from certain types of loans or geographic areas because of race
What is the civil liability for Fair Housing Act violations?
* actual damages
* punitive damages as awarded by the court
* court costs and attorney’s fees
* if action was brought by US Attorney, may bring penalty of up to $50,000 for first violation and $100,000 for subsequent ones
What is the criminal liability for Fair Housing Act violations?
* if no bodily injury in violation, can be found up to $1,000 or imprisoned for up to one year
* if bodily injury, can be fined up to $10,000 and imprisoned for not more than 10 years
* if death results, can be imprisoned for life
T or F
FHA prohibitions only apply to consumer loans
FALSE
no commercial or 1-4 family dwelling limitations
T or F
National banks that are subject to HMDA fulfill fair housing recordkeeping requirements by completing their HMDA LAR and updating it within 30 days of the end of the calendar quarter.
TRUE
A bank may choose to keep a HMDA LAR, or it may keep the Home Loan Data System records, at its option only if _________.
it is not subject to HMDA
Mobile home loans are not covered under FHA unless:
real estate on which the home will be placed is included in the financing
