Laws & Acts

Question 1

Has changed how buyers, sellers, lenders, mortgage brokers, title agents, and real estate professionals prepare for closing.

**Prevent the consumer from receiving an enticingly low interest rate at the initial loan application and then learn at the settlement that the lender is charging more in fees.

Answer 1

p.255
MDIA
Mortgage Disclosure Improvement Act

Question 2

A federal law that requires certain disclosures about the mortgage and settlement process and prohibits certain practices that increase the cost of settlement services.

1) Kickbacks & referral fees are prohibited
2) Does NOT apply to LARGE properties, only small 1-4 family home.

Answer 2

p.255
RESPA
Real Estate Settlement Procedures Act

Question 3

Also known as the “Know Before You Owe” mortgage disclosure rule replaces the four disclosure forms in RESPA with two new forms called: Loan Estimate and Closing Disclosure.

Answer 3

p.255
TILA-RESPA
Integrated Disclosure Rule (TRID)

Question 4

a

Answer 4

p.255

Affiliated Business Arrangement ABA

Question 5

The Loan Estimate replaces the initial _____ and it replaces the Good Faith Estimate (GFE). This Act prohibits the coercion and other activities that influenced appraisals in many cases of fraud that occurred during the housing crisis of the past decade.

Answer 5

Truth in Lending Statement (TIL)

Question 6

In conducting appraisals, and appraiser must follow this.

Answer 6

USPAP

Uniform Standards of Professional Appraisal Practice

Question 7

The law that prohibits discrimination based on RACE.

Answer 7

Civil Rights Act of 1866

Question 8

Owner-occupied buildings with no more than four units.
Prohibits discrimination based on:
race, color
national origin 
religion
sex
familial status, or
disability

Answer 8

Fair Housing Act

Question 9

Created to prevent fraudulent marketing schemes that may arise when land is sold without being seen by the purchasers.

Answer 9

ILSA

Interstate Land Sales Full Disclosure Act

Question 10

Requires reasonable accommodations in employment and access goods, services, and public buildings and to enable individuals with disabilities to become part of the economy and society.

Answer 10

ADA

Americans with Disabilities Act

Question 11

An ____ has the authority to award actual damages to an aggrieved party and to impose a monetary penalty of $19,987.

Answer 11

ALJ

Administrative Law Judge