Level 7: Fair Housing Laws

A tenant comes to a property manager asking to put in shower bars to accommodate their disability. When they property manager informs the landlord, the landlord balks, because the tenant is not a wheelchair user. What should the property manager do? Choose the BEST option. a. Inform the landlord that not all disabilities are visible, and warn them they could be violating the Fair Housing Act by refusing the accommodation. b. Inform the landlord that not all disabilities are visible, and warn them they could be violating the Americans With Disabilities Act by refusing the accommodation. c. Tell the tenant the landlord said no, because they are not a wheelchair user. d. Tell the tenant that if they want to make alterations to the property, their rent will go up $150 a month.

Inform the landlord that not all disabilities are visible, and warn them they could be violating the Fair Housing Act by refusing the accommodation

Landlords are required to allow tenants to make modifications to their property in order to accommodate their disability. Who's responsible for paying for these modifications? a. the tenant b. the landlord c. the local city government d. 50/50 split between the tenant and landlord

the tenant

Lender Scenario #3 Jim is 92 years old. (He doesn't look a day over 90!) He is applying for a 30-year mortgage. Jim has a good income, almost no debt, and his credit is excellent. (Do yo thang, Jim!) The lender forces Jim to purchase life insurance to cover the loan. Is this legal?

It's illegal! The lender cannot ask Jim to purchase life insurance unless they ask ALL of their borrowers to purchase life insurance. Otherwise, that would be age discrimination, and age is a protected class for lenders under the rules of ECOA.

Lender Scenario #2 A lender asks about the credit of a loan applicant's husband, who is a party to the loan application. Is this legal?

It's legal! If an applicant's spouse is named as a party to the loan application, the lender may ask about them. The lender is still required to submit any credit reporting information in the name of each individual. For example, if the loan is granted and later paid in full, that fact must be reflected on each spouse's credit report.

If a lender refuses to make Harry a 30-year mortgage just because Harry is 85 years old, they will have violated: a. ECOA b. CFPB c. RESPA d. CRA

ECOA (Equal Credit Opportunity Act)

Sally and Fred are two single people buying a home together. The lender is threatening to deny them a loan because he does not like their lifestyle. If the lender does that, it will be a violation of the: a. ECOA b. RESPA c. CFPB d. CRA

ECOA (Equal Credit Opportunity Act)

Why do most brokerages fall within the scope of the ADA, and therefore must be extra careful about accessibility? a. because of their location or because they have 15 or more employees b. because they have under 15 employees c. because there is an addendum to ADA specifically pertaining to brokerages d. because it becomes a fair housing issue if brokerages are inaccessible

because of their location or because they have 15 or more employees

What two important classifications were added to the list of protected classes under the 1988 Housing and Community Development Act amendment? a. familial status and disability b. sex and race c. religion and color d. income and age

familial status and disability

You are working with a Black buyer, Tom, and you decide to show him homes in a neighborhood with a high Black population. This illegal act is known as: a. steering b. coding c. redlining d. blockbusting

Steering

Under the ECOA, it is legal for a lender to ask if a borrower is separated. a. TRUE b. FALSE

TRUE

Carla has clients looking for a rental property who only speak Spanish. What should she do to accommodate them? a. provide them with the official translated lease forms b. only show them properties with Spanish-speaking landlords c. only show them properties in majority Spanish-speaking areas d. tell them it will be hard to find a property that "meets their special needs"

provide them with the official translated lease forms

At what age does a child living with his or her parents no longer qualify for familial status protection under the Fair Housing Act? a. 18 b. 16 c. 21 d. 26

18

Which of the following phrases would be considered discriminatory if used in an advertisement? a. "Christian neighborhood" b. "2-2 available for rent in Central Brooklyn" c. "hardwood floors" d. "located near the university"

Christian neighborhood

Which was the first housing discrimination protection act? a. Civil Rights Act of 1866 b. Civil Rights Act of 1988 c. Civil Rights Act of 1968 d. Civil Rights Act of 1804

Civil Rights Act of 1866

Protected classes in the Fair Housing Act of 1968 include race, color, religion, national origin, sex, disability, and what other category? a. familial status b. income c. gender presentation d. sexual orientation

Familial status

Lender Scenario #1 A lender asks a loan applicant how much child support she, the applicant, is receiving, although she has stated that she doesn't intend to use the money to qualify for the loan. Is this legal?

No! That ain't legal! Under ECOA, a lender may only ask about child support if the applicant intends to use that money to qualify for the loan. This means that the borrower would have to mention that she receives child support and would like it to be considered. If she doesn't, then this information about her personal life is not relevant to the loan application process.

An elderly couple is going to rent their vacant basement for extra income. The couple does not want a family with children. The couple asks their granddaughter, who is a real estate agent, to help them with finding tenants. Is this legal? Why or why not? a. No, the couple is not allowed to discriminate against families with children if they are helped by their granddaughter because she is a license holder. b. Yes, since the couple is renting their own space, they are exempt from discriminating against families with children. c. Yes, but the couple will only be allowed to discriminate against families with children if they do not pay their granddaughter any type of commission. d. No, it is never legal to discriminate against families with children.

No, the couple is not allowed to discriminate against families with children if they are helped by their granddaughter because she is a license holder

What federal act was passed to help eliminate redlining? a. the Community Reinvestment Act b. the Federal Fair Housing Act c. the Real Estate Settlement Procedures Act d. the Consumer Financial Protection Bureau

The Community Reinvestment Act

The protected class of disability is defined as anyone who has: a. a physical or mental impairment that affects the performance of one or more major life activities b. a physical impairment that affects the performance of major life activities c. a mental impairment that affects the performance of some significant activities d. an addiction to illegal drugs

a physical or mental impairment that affects the performance of one or more major life activities

Which of the following statements accurately describes the basic issues involved in the Jones v. Mayer Co. case? a. A real estate company refused to sell a home because of the prospective buyer's race and was found guilty of violating the Civil Rights Act of 1866. b. A real estate agent refused to show a property due to the renter's religion and was found guilty of violating the Thirteenth Amendment. c. An owner refused to make an exception to a "no pets" policy and was found guilty of violating the federal Fair Housing Act. d. An owner refused to rent out a home due to the lessee's sexual orientation and was found guilty of under Title VIII of the Civil Rights Act of 1968.

a real estate company refused to sell a home because of the prospective buyer's race and was found guilty of violating the Civil Rights Act of 1866

Which of these tenants is protected by the Fair Housing Act? a. a seeing-impaired woman who uses a service dog in a pet-free building b. a man with an unmedicated mental illness and a history of violence c. a woman with a heroin addiction d. a man whose 18-year-old high school senior son lives at home with him

a seeing-impaired woman who uses a service dog in a pet-free building

What is a protected category according to Texas fair housing laws, but not national ones? a. ancestry b. religion c. student status d. familial status

ancestry

How long does person who believes that they have been injured by the discriminatory practices of a real estate license holder have to file a complaint with HUD? a. one year b. two years c. six months d. five years

one year

What is the best definition of blockbusting? a. the practice of encouraging people to sell their homes due to beliefs about how the entry of a protected class will affect an area's property values b. the practice of advising a person seeking to buy or rent a dwelling in a manner that perpetuates segregated housing c. the practice of changing the financial terms of a loan because of an applicant's membership in a protected class d. the practice of limiting the number of loans or the loan-to-value ratio in certain areas of a community or city

the practice of encouraging people to sell their homes due to beliefs about how the entry of a protected class will affect an area's property values