Finance 3
The public section will contain the agency's rating, which can range from _________________ to __________________ in meeting the community's credit needs
"outstanding" to "substantial noncompliance"
Statutory and regulatory penalties are imposed on developers who fail to file and keep a registration statement current with the Office of Interstate Land Sales Registration, or who fail to furnish each purchaser with a copy of an effective Property Report *before the purchaser ...*
*signs a purchase or lease contract*
Farm Credit System is composed of the following lending institutions...
- 4 Farm Credit Banks (FCBs) - 1 Agricultural Credit Bank (ACB)
Section 4.25 of the Farm Credit Act of 1971 includes the following corporations...
- AgVantis (tech) - Farm Credit Finance Corporation of Puerto Rico (FCFCPR) (uses tax incentives) - Farm Credit Leasing Services Corporation - Farm Credit Financial Partners. Inc - FCS Building Association (FCSBA)
The FCA also examines and regulates the following members of the Farm Credit System...
- The Federal Farm Credit Banks Funding Corporation is an entity owned by the FCS banks that markets the securities the banks sell to raise loan funds - Farm Credit System Financial Assistance Corporation - The Federal Agricultural Mortgage Corporation, also known as *Farmer Mac*
the banks in the Farm Credit System provide loans for ...
- real estate - operating costs - rural homes they also offer *credit-related life insurance and crop insurance*
TSAHC offers two types of programs to first-time homebuyers:
1. Home Loan Programs 2. Mortgage Credit Certificate (MCC) Program
TSAHC offers three home loan programs: These programs provide 30-year fixed rate mortgage loans to eligible first-time homebuyers wishing to achieve the American dream of homeownership.
1. Professional Educators Program 2. Homes for Texas Heroes Program 3. Home Sweet Texas Home Loan Program (for those below 80% of Area Median Family income - AMFI)
During the initial 10-day offering period, these HUD homes can be purchased by evacuees at a ____% discount from the appraised value of the home. In addition, HUD will pay up to 5% of the purchaser's closing costs. The purchaser must make a minimum earnest money deposit of $_____ on the property.
10% $500
in a mortgage credit certificate program the amount of tax credit is equal to the mortgage credit rate of ....
35% multiplied by the annual interest paid
Approximately ______________ Texans live in colonias
400,000
Overall, the colonia population is predominately Hispanic; ____% of all colonia residents and 85 percent of those residents under 18 were born in the United States
64.4%
What does the Mortgage Credit Certificate (MCC) Program do?
Allows qualified homebuyers to take a portion of the annual interest paid on the mortgage as a tax credit, up to $2,000, each year they occupy the home as their principal residence
The legislation requires developers to record the contract and counties to keep a record of contracts for deed
Colonias Fair Land Sales Act of 1995
CDBG stands for ...
Community Development Block Grant Program
_____________________ provides a framework for financial institutions and community organizations to work together to promote the availability of credit and other banking services to communities that have not received as much service as others.
Community Reinvestment Act
this act expands and clarifies the expectation that banks will serve the convenience and needs of their local communities
Community Reinvestment Act
Mortgage brokers in Texas are licensed by the ...
Department of Savings and Mortgage Lending (SML)
This CDBG entitlement program allocates annual grants to larger cities and urban counties to develop viable communities by providing decent housing, a suitable living environment, and opportunities to expand economic opportunities, principally for low- and moderate-income persons.
Entitlement Communities
_________________ , aka ECOA, expects a lender to base lending decisions on ...
Equal Credit Opportunity Act an individual's income, net worth, job stability and credit rating
The Farm Credit Council is the national trade association that represents the legislative and regulatory interests of the ...
Farm Credit System
__________________________ is designed to serve the unique financial needs of farmers, ranchers, producers and harvesters of agricultural products
Farm Credit System (FCS)
The _____________________________ was established by the Agricultural Credit Act of 1987 as an independent U.S. government-controlled corporation
Farm Credit System Insurance Corporation (FCSIC)
What is the purpose of the Farm Credit System and what agency regulates their activities?
Farm Credit System serves the unique financial needs of farmers, ranchers, producers/harvesters of agricultural products and rural homeowners by providing loans for real estate, operating costs and rural homes. They also offer credit-related life insurance and crop insurance. FCS is regulated by the Farm Credit Administration.
The Farm Credit System (FCS) was inaugurated under the ...
Federal Farm Loan Act
The _______________________________ is a United States federal law, signed by then President Woodrow Wilson, which established 12 regional Farm Loan Banks to serve members of Farm Loan Associations
Federal Farm Loan Act of 1916 (Farmers could borrow up to 50% of the value of their land and 20% of the value of their improvements... allowed *small farmers to be more competitive*)
TSAHC provides a variety of affordable housing programs that range from ...
First-time Homebuyer Programs for individuals and families to assisting in the development of affordable multifamily housing.
Since 1993, ____________ has been the engine driving the revitalization of the nation's most distressed public housing developments by providing grants and unprecedented flexibility to address the housing and social service needs of their residents
HOPE VI
the CDBG program is one of the longest continuously run programs at .... the CDBG program provides annual grants on a formula basis to general units of ....
HUD local government and States
HUD stands for...
Housing and Urban Development
Explain HUD's Good Neighbor Next Door home purchase program.
In this program for law enforcement officers, pre-Kindergarten through 12th grade teachers, and firefighters/emergency medical technicians, HUD offers a discount of 50% from the list price of a home. In return, the buyer must commit to live in the property for 36 months as his or her sole residence.
The ___________________ authorizes a nationwide program of registration of subdivisions marketed in interstate commerce
Interstate Land Sales Full Disclosure Act (Title XIV of the Housing and Urban Development Act of 1968)
___________________________ (MROP) is a vehicle for grants to _____________________ (PHAs) to finance the capital cost of rehabilitation of old public housing to maintain or expand the supply of decent, safe, and sanitary housing for low-income families.
Major Reconstruction of Obsolete Projects Public Housing Authorities
The federal Fair Housing Act is administered by the __________ and ___________ under the direction of the secretary of Housing and Urban Development (HUD)
Office of Fair Housing and Equal Opportunity
HOPE VI encourages ___________ to seek new partnerships with private entities to create mixed-finance and mixed-income affordable housing that is radically different from traditional public housing "projects."
PHAs
What are the three home loan programs offered by TSAHC?
Professional Educators Program Homes for Texas Heroes Program Home Sweet Texas Home Loan Program
What did the Colonias Fair Land Sales Act do?
Protects those who must rely on contracts for deed to finance property by requiring developers to record the contract and counties to keep a record of contracts for deed. It also requires developers to provide a statement of available services, such as water, wastewater and electricity, and whether the property is located in a floodplain.
Just like federal fair housing legislation, the Texas Fair Housing Act (TFHA) prohibits discrimination in housing because of:
Race Religion Color Sex National Origin Disability Familial status
(SML)
Savings and Mortgage Lending
List three major HUD activities.
Supervising the Federal Housing Administration. Regulating Ginnie Mae. Overseeing (but not regulating) the operations of Freddie Mac and Fannie Mae.
What kinds of programs does USDA Rural Development support?
Supports essential public facilities and services, such as water and sewer systems, housing, health clinics, emergency service facilities and electric and telephone service. Promotes economic development by supporting loans to businesses through banks and community-managed lending pools. Offers technical assistance and information to help agricultural and other cooperatives get started and improve the effectiveness of their member services
In some cases, individuals previously exempt from licensure may need to be licensed under the ...
Texas SAFE Act
TSAHC stands for...
Texas State Affordable Housing Corporation
To what does the Interstate Land Sales Act apply and what does it require?
The Act applies to subdivisions of undeveloped land sold or offered for sale or lease through interstate commerce. It requires submission of a statement of record describing a proposed subdivision in detail, accompanied by maps, contract documents and certifications that fully disclose relevant information about the subdivision.
the ______________ is the principal federal agency responsible for programs concerned with America's housing needs, fair housing opportunities, and improvement and development of our communities
The Department of Housing and Urban Development (HUD)
This program concentrates on securing full disclosure of pertinent facts through the registration process and bringing enforcement action in the event of abuses.
The Interstate Land Sales Full Disclosure Act (Title XIV of the Housing and Urban Development Act of 1968)
the _________________________ helps rural individuals, communities and businesses obtain financial and technical assistance to address their diverse and unique needs.
US Department of Agriculture Rural Development Program (USDA Rural Development)
In order to bid on a HUD home, the evacuee must have ...
a FEMA registration number and, a copy of FEMA's letter stating the bidder's eligibility as a hurricane disaster evacuee
When determining a financial institution's compliance with the Community Reinvestment Act, the regulatory agency doing the evaluation must prepare a written document which includes....
a section for filing in the records and a section to make public
The Interstate Land Sales Full Disclosure Act requires submission of ______________________________ describing a proposed subdivision in detail, accompanied by maps, contract documents and certifications designed to fully disclose relevant information about the subdivision
a statement of record
There are more than 2,294 Texas colonias, located primarily ....
along the state's 1,248 mile border with Mexico
farm loans and needed flexibility was the birth of what we know as the _____________________________ that is so commonly used today
amortized loan
A real estate broker can assist the purchaser in bidding on the home. The home must be purchased with ___________ or _____________ . The purchaser must occupy the home for at least one year from the closing of the sale.
an FHA loan or with all cash
In 1987, a Supreme Court decision expanded the definition of race to include ...
ancestry
the definition of a colonia is....
any identifiable community in the U.S.-Mexico border regions of Arizona, California, New Mexico, and Texas that is determined to be a colonia on the basis of objective criteria, including lack of a potable water supply, inadequate sewage systems and a shortage of decent, safe, and sanitary housing.
The Texas State Affordable Housing Corporation (TSAHC) is a self-supporting, not-for-profit organization which does not receive ....
any state funding for its operations
why are financial institutions are reluctant to lend money to improve the property for colonias?
b/c title to the land often does not transfer to the buyer until it is fully paid for, an applicant cannot use the property as collateral when applying for a loan
in the 1900s, why did farm loans need to be incredibly flexible?
because no one could predict the effect the weather would have on the crops in any given year.
Texas, Arizona, California, and New Mexico set aside up to 10 percent of their State CDBG funds for improving living conditions for ...
colonias' residents
Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to ________________________ while becoming homeowners through HUD's Good Neighbor Next Door Sales Program
community revitalization
HOPE VI permits expenditures for the capital costs of demolition, ...
construction, rehabilitation and other physical improvements, development of replacement housing, and community and supportive services
the _________________________ has been the most frequently used financing mechanism in the colonias because many individuals have neither a credit history nor the resources to qualify for traditional bank or credit union financing.
contract for deed
Financial institutions are required to fairly and impartially make ....
credit available to all credit-worthy applicants
Fair Housing law first began with the Civil Rights Act of 1866, which prohibited ...
discrimination in housing based on race
In 1968, the Supreme Court in Jones v. Mayer ruled that ...
discrimination on the basis of race is strictly prohibited. There can be NO EXEMPTIONS OR EXCEPTIONS with regard to race
FCS banks do not take ....
do not take deposits!
The Community Reinvestment Act requires federal financial institution regulators to assess the record of ...
each bank and thrift in helping to fulfill their obligations to the community and to consider that record in evaluating applications for charters or for approval of bank mergers, acquisitions, and branch openings
Hurricane Discount Home Sales in 2006 HUD announced that it would sell HUD homes at a discount to
evacuees displaced by Hurricanes Katrina, Rita or Wilma
Since much of the land in our early history was available for homesteading through _____________________, most borrowers did not need money to acquire land.
government grants
in 1988, the Fair Housing Amendments Act added ....
handicap and familial status
Lenders are required to inform an applicant who was rejected of the reasons for the denial. This notice must be ...
in writing and given within 30 days
The Texas SAFE Act also requires individuals who provide clerical or support duties as independent contractor loan processors or underwriters to be ...
licensed (The requirements for licensure cover a broad range of loan origination and lending activities)
HUD offers a substantial incentive in the form of a discount of 50% from the ...
list price of the home In return the buyer must commit to live in the property for 36 months as his or her sole residence.
The Public Housing Development program provides Federal grants to ________________________________ to develop housing for low-income families that cannot afford housing in the private market
local public housing authorities (PHAs)
TSAHC was created by statute in 1994 to be operated exclusively for ....
low-income Texans and other underserved populations.
farm loans needed to allow the farmers to ____________________________, rather than make them adhere to a rigid payment schedule
make payments on the loan when they could
PHAs administer the program and can use the grants in conjunction with ...
modernization funds or other HUD funds
The Texas Department of Housing and Community Affairs (TDHCA) offers ....
mortgage loan funds and down payment assistance to eligible first-time homebuyers
Because of the Community Reinvestment Act, banks and thrifts have opened ...
new branches, provided expanded services, adopted more flexible credit underwriting standards, and made substantial commitments to state and local governments or community development organizations to increase lending to populations that have been underserved in the past.
Congress established the Section 184 Indian Housing Loan Guarantee Program in 1994. The program is designed to ...
offer home ownership, property rehabilitation, and new construction opportunities for eligible tribes, Indian Housing Authorities and Native American individuals and families wanting to own a home on trust land or land located in an approved Indian or Alaska Native area
Any person who believes he or she has been discriminated against may file a complaint with HUD within ________________ of the alleged act.
one (1) year
HUD does not provide funds specifically for ...
performing demolition or other disposition activities
Historically, real estate lending in this country began with loans made for ...
purchasing or operating farmland
Title VIII of the Civil Rights Act of 1968 prohibited discrimination in housing based on ...
race, color, religion or national origin
The protected classes of the Federal Fair Housing Act are ...
race, religion, color, national origin, sex, ancestry, handicap and familial status
Traditionally, contracts for deed, unlike deeds of trust, were not __________________________, making it easy for the developer to reclaim the property
recorded with the county clerk
The Community Reinvestment Act 1977 prevents ....
redlining and to encourage banks and thrifts to help meet the credit needs of all segments of their communities, including low- and moderate-income neighborhoods
with a contract for deed, if the buyer fell behind in payments, the developer could ...
repossess the property, often within 45 days, without going through the traditional foreclosure process
The Texas SAFE Act allows a licensed real estate broker or salesperson to perform "real estate brokerage activity" in connection to a transaction without having a ....
residential mortgage loan originator license as long as the licensee meets the following criteria
Contracts for deed make it difficult for home owners to ...
secure financing to build a house or make home improvement
In 1974, the Housing and Community Development Act added ____________ to the list.
sex
The Home Mortgage Disclosure Act of 1975 requires that lenders report ...
statistical information each year to insure that lenders are not restricting loans to certain individuals or neighborhoods to exclude them from obtaining a mortgage (called "redlining")
protect?who does the Colonias Fair Land Sales Act
the Colonias Fair Land Sales Act to protect those who must rely on contracts for deed to finance property.
The federal financial institution regulators are...
the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and, the Office of Thrift Supervision
The Farm Credit Administration (FCA) is an independent federal agency responsible for regulating and examining ...
the banks, associations, and related entities of the Farm Credit System (FCS)
Demolition/Disposition of Public Housing regulates ...
the conditions and the process by which housing authorities may receive permission to demolish or otherwise dispose of housing units that they have previously agreed to operate as public housing
The MCC has the potential of saving the MCC holder ....
thousands of dollars over the life of the loan.
Mortgage Credit Certificate (MCC) Program allows qualified homebuyers to take a portion of the annual interest paid on the mortgage as a tax credit, up to $________, each year they occupy the home as their principal residence.
up to $2,000
According to the Texas Secure and Fair Enforcement for Mortgage Licensing Act of 2009 (Texas SAFE Act), any individual "acting as or engaged in the business of a residential mortgage loan originator" must have a ...
valid mortgage loan originator license
USDA Rural Development programs support such essential public facilities and services as ....
water and sewer systems, housing, health clinics, emergency service facilities and electric and telephone service