Straight Knowledge Flashcards
Regulation X
RESPA
RESPA
2 reasons
Congress Enacted RESPA in 1974
- help consumers become better shoppers for settlement services
- Eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services
TILA
Purpose
Promote the Informed use of credit.
State Usury Laws
imposes Limits for Interest Rates
Annual Percentage Rate [APR]
Interest Rate for the whole Year as applied on a loan, mortgage loan, credit card, etc
EXPRESSED AS AN ANNUAL RATE
Early Disclosure
Provides borrower with a clear picture of the
- type of loan
- length of loan
- payment schedule
- good faith estimate of loan
RESPA
Regulation X
Settlement Services Include [RESPA]
- Originating the Loan
- Attorney Services
- Real Estate Agent Services
- Real Estate Broker Services
- Inspections
- Credit Reports
- Appraisals
- Preparing Closing Documents [Processing & Underwriting]
- Agent Related Services
Sherman Anti Trust Act
1890 - Congress
Federal Statute in the Antitrust Law (Competition Law)
Law Attempts to Prevent the artificial raising of prices by restriction of trade or supply
Price-Fixing in Real Estate
occurs in Real Estate when competing brokers agree to set sales commissions, fees, or management rates.
ILLEGAL.
Price-Fixing Definition
practice of setting prices for products or services rather than letting competition in the open market establish those prices
Conspiracy to Boycott
happens when a group of competitors agree not to deal with another firm or when brokers collectively decide not to deal with a third party to eliminate competition
Tie-In Agreements
agreement to sell one product only if the buyer purchases another product as well. tied together.
Antitrust Violations [most common]
Price-fixing Group Boycotting Imbalances Commission Splits Ties in Agreements Allocation of Customers or Markets
Fair Housing Laws
1968 - Prohibited discrimination in the house buying process
Jones vs. Mayor
1968 supreme court case
regulate the sale of private property in order to prevent racial discrimination based upon the 13th amendment
Federal Fair Housing Act
April 11, 1968
Expanded on previous acts and prohibited discrimination based on RACE + RELIGION + NATIONAL ORIGIN + SEX + HANDICAP + FAMILY STATUS concerning the sale, rental, and financing of housing
Redlining
FINANCES
not selling to certain neighborhoods - judging the poor communities
Panic Selling
SELLERS:
“You better sell because THOSE people are taking over this neighborhood”
