Section 6: Federal and State Housing Laws

Question 1

Annual percentage rate (APR)

Answer 1

Includes the interest rate and other loan costs and represents the true yearly cost of credit

Question 2

Blockbusting

Answer 2

To use the entry, or rumor of entry, of a protected class into a neighborhood to persuade owners to sell

Question 3

Civil Rights act of 1866

Answer 3

Prohibits any type of discrimination based on race in ALL real estate transactions (Sale or rental) without exceptions

Question 4

Fair Housing Act

Answer 4

created protected classes of people and prohibits discrimination when selling or renting certain residential property

Question 5

Familial status

Answer 5

Protected class of people under the the Fair Housing Act, consisting of families with children younger than 18 and pregnant women

Question 6

Good faith estimate

Answer 6

Closing (settlement) costs lists of the charges the buyer is likely to pay at closing

Question 7

Handicap status

Answer 7

A protected class of people under the Fair Housing Act who have a physical or mental impairment that interferes with normal life functions

Question 8

Property reports

Answer 8

Disclosure documents required under the federal Interstate Land Sales Disclosure Act

Question 9

Public Accomodations

Answer 9

Facilities open to the public, including sales and rental establishments, hotels, and shopping centers

Question 10

Redlining

Answer 10

To deny loans or insurance coverage by a lender or insurer or presenting different terms or conditions in certain neighborhoods

Question 11

Servicing disclosure statement

Answer 11

Discloses to the borrower whether the lender intends to service the loan or transfer it to another lender or Servicing company

Question 12

Special information booklet

Answer 12

contains consumer information regarding closing services for which the borrower may be charged at closing

Question 13

Steering

Answer 13

Channeling protected-class homeseekers away from areas that are not mixed with that class into areas that are

Question 14

Triggering terms

Answer 14

include certain credit terms or specific financing information in an advertisement

Question 15

Truth in Lending Act (TILA)

Answer 15

is a federal law that is part of the consumer credit protection Act, and implemented by the federal Reserve Board’s Regulation Z. The act ensures that borrowers and customers of consumer credit are given information regarding the cost of credit so that consumers can compare credit terms available

Question 16

Civil Rights Act of 1964

Answer 16

Prhoibits disvcrimination based on race, color, religion, or national origin

• Applies to public accomodations
• Applies to public facilities operated by state or municipal governments

Question 17

What are 7 protected classes?

Answer 17

• Color
• Race
• Religion
• Sex
• National Origin
• Familial Status
• Handicap Status

Question 18

What classes are NOT protected under the Fair Housing Act?

Answer 18

• Age
• Occupation
• Marital Status
• Sexual Orientation

Question 19

What are exemptions for housing for older persons?

Answer 19

Certain housing is exempt from familial status protection if:

• All units are occupied by persons 62 years of age or older
• At least 80% of units are occupied by one or more persons 55 years or older

Question 20

What is the Truth in Lending Act?

Answer 20

• Requires lenders to disclose the annual percentage ratte and all costs associated with credit

Question 21

Three-day right of rescission

Answer 21

• Does NOT apply to first mortgages

- Applies o most consumer loans, including home equity lines of credit, second mortgages, and refinance loans

Question 22

Coastal Management Act

Answer 22

• Administered by the EPA
• Designed to protect coastal areas
• Participation by states is voluntary (Federal funds available to states that do participate)
• Attempts to reduce nonpoint source (NPS) pollution

Question 23

What is required of brokers who hold landlord funds?

Answer 23

If a real estate broker holds the funds on behalf of a landlord, the broker must abide by real estate license law concerning escrowed funds

Question 24

Florida Residential Landlord and Tenant Act

Answer 24

Helps to put tenants and landlords on a more equitable basis

Question 25

How long after a notice is posted by a sheriff will an eviction take place?

Answer 25

24-hours

Question 26

What must advertising containing triggering terms disclose?

Answer 26

• Amount or percentage of down payment
• Terms of repayment
• Annual Percentage Rate (APR)

Question 27

Equal Credit Opportunity Act

Answer 27

-Ensures that financial institutions and firms engaged in extending credit will make credit available with fairness and without discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or receipt of income from public assistance programs

Question 28

RESPA

Answer 28

• Real Estate Settlement Procedures Act

- Enacted to ensure buyers are informed regarding the amount and type of charges they will pay at closing

Question 29

What loans are exempt from RESPA?

Answer 29

• Construction loans, EXCEPT those intended for conversion into permanent loans
• Loans to finance the purchase of 25 acres or more