Section 3, Unit 2: Federal Legislation Affecting the Real Estate Industry
The ______ was a response to the practice of redlining and was enacted in 1977.
Community Reinvestment Act
Tyler is a developer who renovates a long-abandoned warehouse in a low-income neighborhood into a community center, complete with space for after-school programs, a daycare, and a gym. Tyler is able to complete the renovation with a loan funded by a local bank. Which act requires financial institutions to make credit available for this type of development?
Community Reinvestment Act
The ______ was enacted in 2010 to create stricter regulation of the financial services industry.
Dodd-Frank Wall Street Reform and Consumer Protection Act
The Real Estate Settlement Procedures Act protects consumers by _______.
Eliminating illegal kickbacks and referral fees among settlement service providers and requiring lender disclosures as part of a residential real estate transaction involving credit
Natalie is a single mother of twins and receives government assistance to help make ends meet. She's been living with her mother for the last few years but really wants to buy her own home to gain some independence. She's got a little in savings and has good credit, but when a lender turns her away because she receives public assistance she worries that she'll never be able to get a loan. What act prevents automatic discriminatory practices by lenders and protects individuals like Natalie?
Equal Credit Opportunity Act
Jerome is developing an ad for three properties he has listed in an upscale community. He wants to keep it short and simple. Which of these would NOT trigger full disclosure under TILA?
Get a low 4.925% APR
The Morgans are about to close on their home. They're meeting with the lender to complete all the necessary paperwork. They've requested that none of their demographic information be shared with anyone. Which act would they need to be made aware of?
Home Mortgage Disclosure Act
What is TRID?
TILA-RESPA Integrated Disclosures
A "homes for sale" magazine contains the following ad: "One-bedroom condo. Corner unit with beautiful ocean views. Financing available, 5.25% APR." Which of these statements is true?
The ad is in compliance with TILA because providing the APR doesn't trigger the required disclosure of all credit terms.
The Housing and Economic Recovery Act and the American Recovery and Reinvestment Act were enacted in response to ______.
The subprime mortgage crisis and economic meltdown of 2007-2008
The ______ was enacted in 1968 as part of the Consumer Credit Protection Act.
Truth in Lending Act
When Stacy's clients ask her if she can recommend a mortgage broker, she promptly gives them the name of the best mortgage broker she knows, Gary Jones. Later, she always receives a check from Gary as payment for the referral. Is this legal or illegal under the Real Estate Settlement Procedures Act?
his is illegal under RESPA because it's considered a kickback between settlement service providers.