Practice of Real Estate Flashcards
When a lender refuses to make loans secured by property in a certain neighborhood because of the racial or ethnic composition of the neighborhood.
Redlining
Federal law prohibiting public and private racial discrimination in any property transaction in the U.S.
Civil Rights Act of 1866
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.
Federal Fair Housing Act
A federal agency established in 1934 to increase home ownership by providing an insurance program to safeguard the lender against the risk of non-payment. Currently part of the Department of Housing and Urban Development (HUD).
Federal Housing Administration (FHA)
(15 USC §1691 et seq.) A federal law passed in 1974 that ensures that all consumers are given an equal chance to obtain and maintain credit. ECOA is implemented through Regulation B (12 CFR § 1002) and enforced by the Consumer Financial Protection Bureau.
Equal Credit Opportunity Act (ECOA)
The government agency that deals with housing issues.
Department of Housing and Urban Development (HUD)
Treating people unequally because of their race, religion, sex, national origin, age, or some other characteristic of a protected class, in violation of civil rights laws.
Discrimination
The total cost of financing a loan in percentage terms, as a relationship of the total finance charges to the total amount financed.
Annual Percentage Rate (APR)
The illegal practice of inducing owners to sell their homes (often at a deflated price) by suggesting that the ethnic or racial composition of the neighborhood is changing, with the implication that property values will decline as a result. Also called panic selling.
Blockbusting
Channeling prospective buyers or tenants to particular neighborhoods based on their race, religion, national origin, or ancestry.
Steering
Federal guidelines under the Truth-in-Lending Act that require full disclosure of all credit terms for consumer loans.
Regulation Z
A person working with a fair housing organization, who pretends to be interested in buying or renting property from someone suspected of unlawful discrimination. Also called: Checker
Tester
A protected group under the federal Fair Housing Act, making it illegal to discriminate against a person for being the parent or guardian of a child under 18 years of age.
Familial Status
Part of the Civil Rights Act of 1968; prohibits discrimination based on race, color, religion, sex, national origin, disability or familial status. Also referred to as the Federal Fair Housing Act
Title VIII
