Federal Laws Governing Real Estate Activities
CFPB requires a lender to give the borrower what at the time of application?
A new loan estimate of settlement costs The answer is a new loan estimate of settlement costs. CFPB requires that a lender provide the borrower a new loan estimate of closing costs no later than three days after the borrower has applied for a loan. CFPB also requires that the new loan closing disclosure be available for the borrower three days before closing. Lenders must provide the HUD special information booklet to every person from whom they receive a loan application except for applications for refinancing. CFPB does not require a lender to provide any report of the lender's financial stability.
The Truth in Lending Act requires the lenders supply borrowers with information applying to
the true cost of credit or annual percentage rate. The answer is the true cost of credit or annual percentage rate. Truth in Lending requires the disclosure of the APR (annual percentage rate) or the true cost of credit on the loan. RESPA requires a new loan estimate of closing costs and the new loan closing disclosure prior to settlement.
According to federal do-not-call legislation, when a consumer makes an inquiry or submits an application, a real estate licensee may call the consumer for up
to 3 months. The answer is to 3 months. A real estate licensee may call a consumer for up to 3 months after the consumer makes an inquiry or submits an application. A licensee may call consumers with whom they have an established business relationship for up to 18 months after the consumer's last purchase, delivery, or payment.
The Can-Spam Act established guidelines for sending
unsolicited email messages. The answer is unsolicited email messages. The Can-Spam Act established guidelines for unsolicited commercial email messages, including an option for the receiver to opt-out from receiving future emails. The federal Junk Fax Prevention Act of 2005 permits someone to send a fax based on a prior business relationship, with an opt-out process to prevent future unsolicited advertising faxes.
Which of the following would be considered a trigger item under Regulation Z?
"Only $10,000 down." The answer is "Only $10,000 down." Specific credit terms, such as a down payment, monthly payment, dollar amount of the finance charge, or term of the loan, are referred to as trigger items. If such items are included in any advertisement, the advertisement must include additional information required by the regulation.
A prospective homebuyer who has three children inquires about the availability of a home in an area of predominately single and married couples without children. What should the broker say to this prospect?
''I'll be pleased to show you houses in any area that you're interested in.'' The answer is "I'll be pleased to show you houses in any area that you're interested in." The broker must not channel home seekers toward or away from particular neighborhoods based on familial status. This practice is called steering.
A real estate brokerage firm used a third-party email service to send an unsolicited email to announce a reduced price on a listed property. A person who received the email chose to opt-out from receiving additional emails from the licensee. The opt-out request must be honored within
10 days. The answer is 10 days. The CAN-SPAM Act requires that requests to opt-out of unsolicited emails must be honored within 10 business days. The Act also requires that the method to opt-out must be prominent within the email, and that the receiver must be able to opt-out from receiving future emails for at least 30 days after the message is sent.
As mandated by federal do-not-call legislation, real estate licensees may call consumers with whom they have established a business relationship up to
18 months after the consumer's last purchase, delivery, or payment. The answer is 18 months after the consumer's last purchase, delivery, or payment. Real estate licensees may call consumers with whom they have an established business relationship for up to 18 months after the consumer's last purchase, delivery, or payment. A real estate licensee may call a consumer for up to 3 months after the consumer makes an inquiry or submits an application. If a consumer asks a company not to call, the company must abide by the consumer's request, which stays in effect for 5 years.
In the case of residential real estate transactions for refinancing a loan, which are covered by Truth in Lending, the borrower has how many days in which to rescind the transaction?
3 days The answer is 3 days. According to Truth in Lending, the borrower has three days to rescind the transaction by merely notifying the lender. The three-day right of rescission applies only to loans for refinancing and home equity loans. It does not apply to purchase or construction loans.
A lender will take certain factors into consideration when deciding whether to grant a borrower a mortgage loan. A decision based on which factor is a violation of the Equal Credit Opportunity Act (ECOA)?
Age of the borrower The answer is age of the borrower. ECOA prohibits lenders from discriminating against credit applicants on the basis of several factors, including age, race, sex, and marital status. A lender may consider a borrower's income, creditworthiness, and ability to make payments in determining whether or not to make a loan.
A real estate broker wants to end racial segregation. As an office policy, the broker requires that salespeople show prospective buyers from racial or ethnic minority groups only properties that are in certain areas of town where few members of those groups currently live. The broker has prepared a map illustrating the appropriate neighborhoods for each racial or ethnic group. Through this policy, the broker hopes to achieve racial balance in residential housing. Which statement is TRUE regarding this broker's policy? A) This type of steering is allowed in cases where equality is the end result. B) Because the effect of the broker's policy is discriminatory, it constitutes illegal steering regardless of the broker's intentions. C) The broker's policy clearly shows the intent to discriminate. D) While the broker's policy may appear to constitute blockb
Because the effect of the broker's policy is discriminatory, it constitutes illegal steering regardless of the broker's intentions. The answer is because the effect of the broker's policy is discriminatory, it constitutes illegal steering regardless of the broker's intentions. Violations of fair housing laws occur when the effects of a practice result in illegal discrimination, regardless of intentions. The broker's policy in this case has the effect of steering purchasers to particular neighborhoods and is illegal steering. Blockbusting would occur if the broker induced owners to sell their property by claiming that members of a protected class were buying in the area and lowering property values.
"I hear they're moving in. There goes the neighborhood! Better put your house on the market before values drop!" This statement is an example of what illegal practice?
Blockbusting The answer is blockbusting. Such statements, made by a person in real estate brokerage, constitute blockbusting and usually are attempts to get listings by frightening owners into selling. Blockbusting is a violation of the federal Fair Housing Act. Steering is the channeling of homebuyers to a particular neighborhood to maintain or change the character of the neighborhood. Redlining is the illegal practice of refusing to make a mortgage loan or restricting the number of loans in a particular area. Fraudulent advertising involves providing untrue statements or promises in the advertising of a property.
If a mortgage lender discriminates against a loan applicant on the basis of age, it violates what law?
ECOA The answer is ECOA. Age is a protected category only under the Equal Credit Opportunity Act (ECOA). ADA (Americans with Disability Act), FHA (Federal Housing Administration, and VA (U.S. Department of Veterans Affairs) do not have laws in regard to the age of applicants since the issue is covered under ECOA and applies to FHA and VA loans.
After a broker takes a listing of a residence, the owner specifies that he will not sell his home to any family that is not of the same Asian background as the seller. The broker should do which of the following?
Explain to the owner that his instruction violates federal law and that the broker cannot comply with it. The answer is explain to the owner that his instruction violates federal law and that the broker cannot comply with it. The situation places the broker in the position of either violating the fiduciary duty of obedience or violating the federal Fair Housing Act. To avoid breaking the law, the broker must end the agency agreement if the owner insists on the discriminatory instruction. The broker may not advertise the property exclusively in foreign-language newspapers, and a legal document signed by the owner does not exempt the broker from following fair housing laws.
Discrimination based on familial status was prohibited with the passage of the
Fair Housing Amendments Act of 1988. The answer is Fair Housing Amendments Act of 1988. Familial status and handicap (disability) were added as protected classes under the federal Fair Housing Amendments Act of 1988. The federal Civil Rights Act of 1964 prohibits discrimination on the basis of race, ethnicity, national origin, religion, or sex in voting laws and practice, in education, in the workplace, and in facilities that serve the general public. The federal Fair Housing Act of 1968 forbids discrimination in housing and mortgage lending on the basis of race, color, religion, and national origin. Additional laws passed in 1974 and 1988 added sex, familial status, and disability as protected classes. The federal Civil Rights Act of 1866 prohibited discrimination based on race.
Real estate professionals must guard clients personal information, sometimes forever, based on all of the following laws EXCEPT A) Federal Privacy Act B) State Laws of Agency C) Common laws of agency D) Federal Fair Housing Act
Federal Fair Housing Act The answer is Federal Fair Housing Act. Fair housing does not require confidentially be maintained. The common law of agency, state agency laws and the privacy act, all required real estate professional s to maintain confidentiality of transactions.
Why is the Civil Rights Act of 1866 unique?
It provides no exceptions that would permit racial discrimination. The answer is it provides no exceptions that would permit racial discrimination. Unlike other exemptions permitted under the federal Fair Housing Act of 1968, the Civil Rights Act of 1866 allows no exceptions due to race. Recipients of public assistance are not protected classes under any fair housing law but are protected under ECOA. Senior housing protections are in the Fair Housing Act of 1988, not the Civil Right Act of 1866. No fair housing laws contain a "choose your neighbor" provision.
According to TRID disclosure rules, when must the Loan Estimate form be provided to consumers?
No later than three business days after the loan application is received by the lender The answer is no later than three business days after the loan application is received by the lender. A business day includes Saturdays the lender is open for business.
Which action is legally permitted?
Refusing to make a mortgage loan to a minority individual because of a poor credit history The answer is refusing to make a mortgage loan to a minority individual because of a poor credit history. Bad credit can cause anyone to be rejected, even those who are members of protected classes. Fair housing laws do prohibit altering the terms of a loan for a member of a minority group or advertising property for sale only to a special group. Refusing to rent an available apartment to a family with six children violates the Fair Housing Act.
The following ad appeared in the newspaper: "For sale: 4 BR brick home; Redwood School District; excellent Elm Street location; short walk to St. John's Church and right on the bus line. Move-in condition; priced to sell." Which statement is TRUE? A) The ad should state that the property is available to families with children. B) The ad describes the property for sale and is very appropriate. C) The fair housing laws do not apply to newspaper advertising. D) The ad should not mention St. John's Church.
The ad should not mention St. John's Church. The answer is the ad should not mention St. John's Church. Reference to a nearby church implies religious preference and violates HUD advertising regulations designed to enforce the federal Fair Housing Act. The ad does not have to state that the property is available to families with children or to any protected class as long as the ad does not appear to discriminate against a particular protected class.
A broker has established the following office policy: "All listings taken by any salesperson associated with this real estate brokerage must include compensation based on a 10% commission. No lower commission rate is acceptable." If the broker attempts to impose this uniform commission requirement, which statement is TRUE? A) The broker must present the uniform commission policy to the local professional association for approval. B) A homeowner may sue the broker for violating the antitrust law's prohibition against price-fixing. C) The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm. D) The salespeople associated with the brokerage will not be bound by the requirement and may negotiate any commission rate they choose.
The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm. The answer is the broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm. Antitrust violations occur only if price-fixing exists among competing firms. Brokers have the right to set commissions within their own firm. The broker's policy is not an antitrust violation. Salespeople who wish to continue with that broker can be required to comply with the policy.
An apartment rule prohibits pets. A prospective tenant with a physical disability relies on a service animal to assist him. Which of the following is TRUE? A) The landlord may not refuse to rent to a person with a service animal. B) The landlord can waive the enforcement of the rule only if there is a suitable unit in the complex for an animal. C) The landlord must allow the animal but can charge an extra pet deposit. D) The landlord can require proof of the tenant's disability and require a non-fundable pet deposit.
The landlord may not refuse to rent to a person with a service animal. The answer is the landlord may not refuse to rent to a person with a service animal. Service animals are not pets and must be allowed as a reasonable accommodation for a disabled person under the Fair Housing Act. The landlord may not charge any pet deposit for the animal.
A single man with two small children has been told by a real estate salesperson that homes for sale in a condominium complex are available only to married couples with no children. Which statement is TRUE? A) The man may file a complaint alleging discrimination on the basis of familial status. B) Restrictive covenants in a condominium take precedence over the fair housing laws. C) Condominium complexes are exempt from the fair housing laws and can therefore restrict children. D) Because a single-parent family can be disruptive, if the parent provides little supervision of the children the condominium is permitted to discriminate.
The man may file a complaint alleging discrimination on the basis of familial status. The answer is the man may file a complaint alleging discrimination on the basis of familial status. The salesperson, and by implication the broker, and the property owner-principals have violated the prohibition against familial status discrimination. Anyone in charge of one or more children under age 18 who is denied access because of the children is the victim of discrimination based on familial status. Restrictive covenants do not take precedence over fair housing laws.
A broker employs several salespeople, one of whom is a member of a protected group. The broker directs her to work only with members of her group and to solicit sales only in similar neighborhoods. Which of the following is TRUE? A) The salesperson should be satisfied with the broker's policy. B) The fair housing laws do not apply to the broker's practices. C) The broker is entitled to direct a salesperson's activities in this way. D) The practice could establish or continue the unlawful practice of steering.
The practice could establish or continue the unlawful practice of steering. The answer is the practice could establish or continue the unlawful practice of steering. Fair housing laws prohibit steering and do apply to the effects of a broker's practices. The broker's actions could be considered to be designed to steer the salesperson's activities only to prospective clients or customers of her racial or ethnic group. The salesperson's acceptance of the broker's directive could result in the actual steering of minorities to specific neighborhoods.
The landlord's lease prohibits tenants from altering the property in any way. A young woman who uses a wheelchair cannot maneuver over the doorstep into the apartment by herself. In addition, she cannot access the bathroom facilities in her wheelchair. Which of the following is TRUE?
The tenant is entitled to make the necessary alterations. The answer is the tenant is entitled to make the necessary alterations. The Fair Housing Amendments Act of 1998 provides that people with disabilities must be permitted to make reasonable modifications to the premises at their own expense. The Act does not require the landlord to make all apartments accessible to people with disabilities.
Which law requires any advertisement that references mortgage financing terms to contain certain disclosures?
Truth in Lending Act The answer is Truth in Lending Act. Truth in Lending Act requires that trigger terms about mortgage financing in any kind of advertising must also include additional disclosures in the advertisement. The Fair Housing Act prohibits discrimination against protected classes in residential real estate advertising and practice. RESPA (Real Estate Settlement Procedures Act) deals with closings and settlement and does not apply to advertisement. The Equal Credit Opportunity Act prohibits lenders and others who grant or arrange credit to consumers from discriminating against protected credit applicants.
How long is allowed for parties to file a discrimination suit in federal court?
Two years The answer is two years. Parties to discrimination have one year to file with HUD and two years to file in federal court.
A woman has a nine-year-old grandson living with her, and her application for an apartment has been rejected as the community does not allow anyone under the age of 18. Is this permissible?
Yes, if the housing complies with regulations for senior housing. The answer is yes, if the housing complies with regulations for senior housing. Certain properties can be restricted to occupancy by seniors as an exemption to the familial status protection. Senior housing properties in which 80% of the units are occupied by individuals 55 or older may refuse to rent or sell to families with children and may exclude owners and tenants from having children under 18 living in the senior housing. In all other cases familial status is always a protected class in housing.
Antitrust laws prohibit all of the following EXCEPT A) competing property management companies agreeing to standardized management fees. B) competing brokers allocating market shares based on the value of homes. C) a broker setting a company commission schedule. D) real estate companies agreeing not to cooperate with a broker because of that broker's fees.
a broker setting a company commission schedule. The answer is a broker setting a company commission schedule. All the other actions are violations of antitrust laws. Real estate brokers must independently determine commission rates or fees for their firms only. Commission decisions must be based on a broker's business judgment and revenue requirements and without input from other competing brokers.
Federal fair housing law of 1988 added additional protected classes. Landlords under this law must rent to those who are protected under the law. As of 1988 all of the following are protected EXCEPT A) a woman convicted of sexual molestation. B) a user of illegal drugs currently in a rehabilitation program. C) a woman diagnosed was having HIV/AIDS. D) a woman who has three children under five and is expecting a fourth wanting to rent a two bedroom unit.
a woman convicted of sexual molestation. The answer is a woman convicted of sexual molestation. Sexual molesters are not protected under any federal law. The 1988 law added protections for disability and familial status. Having HIV/AIDS or being an illegal drug user in rehabilitation is covered under disability in the fair housing law. Typically, children under five are not considered as part of occupancy requirements, so the landlord would need to rent to the family as they are protected under familial status.
The federal Equal Credit Opportunity Act (ECOA) allows lenders to discriminate against potential borrowers on the basis of
amount of income. The answer is amount of income. Lenders may reject applicants who have insufficient income for the loans they are requesting or for their lack of ability to repay the loans. Lenders may not discriminate against potential borrowers on the basis of race, color, religion, national origin, sex, marital status, age, or dependence on public assistance.
When a salesperson tells homeowners that minorities are moving into the area in order to get those homeowners to sell their properties, this activity is
called blockbusting. The answer is called blockbusting. Blockbusting is inducing panic selling by claiming the entry of a protected class will have some sort of negative impact on property values. Blockbusting is never legal.
Real estate firms are often affiliated with title insurance companies or mortgage brokers. RESPA permits these business arrangements as long as
companies disclose their relationships with one another to the consumer. The answer is companies disclose their relationship with one another to the consumer. RESPA permits such arrangements as long as a consumer is clearly informed of the relationship among the affiliated companies and provided information that the consumer may use other service providers for the same services. The companies may not require a consumer to use the services of any affiliated company. The companies may not pay one another referral fees.
The federal Fair Housing Act does NOT prohibit A) redlining. B) discriminating on the basis of marital status. C) discriminatory advertising. D) blockbusting.
discriminating on the basis of marital status. The answer is discriminating on the basis of marital status. Marital status is not one of the seven protected classes under the federal Fair Housing Act. The Act and regulations based on the act do prohibit discriminatory advertising, redlining, and blockbusting.
Two salespersons both work for the same real estate firm. One afternoon they agree to divide their town into a northern region and a southern region. One will handle listings in the northern region, and the other will handle listings in the southern region. Their agreement
does not violate antitrust laws. The answer is does not violate antitrust laws. Antitrust laws prohibit price-fixing and other antitrust activities between competing firms. Because both salespersons work for the same firm, their agreement is not an agreement between competing companies to divide markets. The salespersons are merely fixing responsibilities within one company. Their agreement is quite proper and not subject to antitrust law.
Federal do-not-call legislation limits calls
from any plan, program, or campaign to sell goods or services through interstate phone calls. The answer is from any plan, program, or campaign to sell goods or services through interstate phone calls. The federal do-not-call legislation applies to any plan, program, or campaign to sell goods or services through interstate phone calls. The legislation does not limit calls by political organizations, charities, collection agencies, or telephone surveys. Real estate licensees may call consumers with whom they have an established business relationship for up to 18 months after the consumer's last purchase, delivery, or payment.
Under the federal Fair Housing Act, it is illegal to discriminate because of a person
having AIDS. The answer is having AIDS. People with AIDS are protected under the disability provision of the Fair Housing Act. Fair housing laws do not prohibit discrimination in housing because of a person's marital status. Owners may refuse to sell or rent to persons who have a history of dangerous behavior or drug convictions as fair housing laws do not protect such behavior.
A lender's refusal to lend money to potential homeowners attempting to purchase properties in areas with high crime rates is known as
illegal redlining. The answer is illegal redlining. Failing to lend or to insure in areas with high crime rates is a form of redlining and a violation of the federal Fair Housing Act and is never legal. Such practices tend to discriminate against protected classes who largely populate such areas. Blockbusting is inducing panic selling by claiming the entry of a protected class will have some sort of negative impact on property values. Steering is the channeling of homebuyers to a particular neighborhood to maintain or change the character of the neighborhood.
Housing that qualifies for exemption from familial status under federal fair housing provisions
includes a restriction that 80% of the units be occupied by people 55 or older. The answer is includes a restriction that 80% of the units be occupied by people 55 or older. The Fair Housing Act allows for two exemptions to familial status protection in housing for seniors. One permissible exemption is if 80% of the units are occupied by people age 55 or older. The other exemption is for housing intended for persons over the age of 62. Owner-occupied buildings with four or more units are subject to the federal Fair Housing Act. All senior housing must be HUD certified.
The CFPB (Consumer Financial Protection Bureau) requires that
lenders provide the borrower with new loan estimate at the time of application or no more than three days after application. The answer is lenders provide the borrower with a new loan estimate at the time of application or no more than three days after application. CFPB provides that the lender provide the borrower with a new loan estimate of the settlement costs no more than three business days after receiving the loan application. The law requires full disclosure of APR and terms if certain items are included in the advertisement, it does not apply to all ads. . The law does not apply to the purchase of commercial properties. CFPB does not require brokers to verify the new loan closing disclosure matches a new loan estimate as there may have been changes.
RESPA (Real Estate Settlement Procedures Act) applies to the activities of
lenders, title companies, and real estate brokers. The answer is lenders, title companies, and real estate brokers. RESPA requirements apply to lenders primarily. RESPA also requires real estate brokers and title companies that package services for consumers to inform consumers of the relationship between the companies and to inform consumers that they are free to choose other companies for services.
A landlord has discovered that the tenant who has applied for a unit has a history of alcoholism and violence. The landlord
may refuse to rent to the tenant because of the tenant's history of violence. The answer is may refuse to rent to the tenant because of the tenant's history of violence. Alcoholism is a disability under the law, but the landlord does not have to rent to anyone who might be a danger to the landlord or other tenants. There is no legal requirement for the landlord to rent with additional fees or required drug testing.
A commercial brokerage firm has hired a local advertising firm to send our email blasts about new listings. In this case all of the following statements are true about the emails EXCEPT A) the receiver must be able to opt-out for at least 30 days after the message is sent. B) requests to opt-out must be honored within 10 business days. C) the method to opt-out from receiving future emails must be prominent in the email message. D) no opt-out method is required for emails sent by a third party.
no opt-out method is required for emails sent by a third party. The answer is no opt-out method is required for emails sent by a third party. The CAN SPAM Act requires an opt-out method for all unsolicited commercial emails. When a licensee uses a third party person or service to send unsolicited emails, the licensee must monitor the emails to ensure that they comply with the Act and have an opt-out in the email. All the other statements are true regarding the CAN-SPAM Act.
A couple makes a written request that a real estate brokerage firm not contact the seller once the sale of their home is completed. Under this circumstance, the broker may
not contact the seller at any time. The answer is not contact the seller at any time. If a consumer asks a company not to call, even if the company has an established business relationship with the consumer, the company must abide by the consumer's request. The request says in effect for 5 years. If a consumer does not make such a request, a broker may contact the consumer for up to 18 months after the consumer's last purchase, delivery, or payment. The broker may call a consumer for up to 3 months after the consumer makes an inquiry or submits an application.
It is illegal for a lending institution to refuse to make a residential real estate loan in a particular area only because of the
physical location of the property. The answer is physical location of the property. Refusing to make a residential loan in a particular area is known as redlining, literally drawing a line around particular areas and refusing to make loans in those areas. Redlining is considered a form of discrimination. Asking applicants for citizenship documentation or immigration status does not violate the Fair Housing Act. A lending institution may refuse to make a residential real estate loan based on the economic situation of an applicant or the condition of the property itself.
A broker was accused of violating antitrust laws. Of the following, he was MOST likely accused of A) undisclosed dual agencies. B) not having an equal housing opportunity sign in her office window. C) blockbusting in a community. D) price-fixing.
price-fixing. The answer is price-fixing. Antitrust laws prohibit competing brokers from setting a standard commission rate, a practice known as price-fixing. Practicing undisclosed dual agency would violate agency law. Not posting the required fair housing sign in her office violates fair housing law. Blockbusting is violating fair housing laws not antitrust laws.
Brokerage commissions charged to sellers in listing contracts for the sale of real property are MOST typically set by the A) state Commission and the principal broker negotiations. B) brokerage firm and board of REALTORS®. C) principal broker then negotiated with the seller. D) negotiation between local brokerage firms.
principal broker then negotiated with the seller. The answer is principal broker then negotiated with the seller. The principal broker has the right to set the minimum commission for the firm and then the broker associates and salespeople can negotiate the level of commission they need to complete the job as created by the listing contract. The Commission, local firms, and the board of REALTORS® may not be a party to the firm's commission decision or negotiations.
The Civil Rights Act of 1866 prohibits any limitation of property rights based on
race. The answer is race. The federal government's effort to guarantee equal housing opportunities to all U.S. citizens began with the passage of the Civil Rights Act of 1866. This law prohibits any discrimination based on race. Religion, sex, and handicap are protected classes under federal fair housing laws enacted in 1968 and 1988.
There are no exceptions to fair housing law for
racial discrimination. The answer is racial discrimination. The case of Jones v. Mayer in 1968 upheld the Civil Rights Act of 1866 and prohibits racial discrimination without exception. Private clubs, religious organizations, and retirement communities are not exempt from fair housing laws prohibitions against housing discrimination based on race.
All of the following actions are illegal under federal and state fair housing laws EXCEPT A) refusing to show certain residential property to people who are not financially qualified to purchase it. B) offering advantageous loan terms to encourage the integration of a residential area. C) channeling members of a certain minority group into an area already predominately occupied by members of that minority. D) refusing to show certain residential property to non-English-speaking individuals.
refusing to show certain residential property to people who are not financially qualified to purchase it. The answer is refusing to show certain residential property to people who are not financially qualified to purchase it. People who are not financially qualified to buy are not protected under the federal Fair Housing Act. The Act does prohibit discriminating against persons based on their race or ethnicity or steering persons to a particular area based on their minority status. Lenders may not steer racial or ethnic groups to a particular residential area through loan terms designed to attract those groups.
All of the following are protected under federal fair housing laws EXCEPT A) Baptists. B) sexual orientation. C) Muslims. D) children.
sexual orientation. The answer is sexual orientation. Sexual orientation may be protected under state or local fair housing laws, but sexual orientation is not a protected class under federal law. Protected classes under federal law include: race, color, religion, or national origin, sex, disability, and familial status.
The act of directing home seekers toward or away from particular areas either to maintain or to change the character of the neighborhood is
steering. The answer is steering. A person who guides prospects either toward or away from certain neighborhoods based on racial, ethnic, religious, or similar concerns is guilty of steering. This practice is outlawed by the federal Fair Housing Act of 1968 and is not legal. Whether it is done to promote housing segregation or integration is immaterial. Redlining is the illegal practice of refusing to make a mortgage loan or restricting the number of loans in a particular area. Blockbusting is inducing panic selling by claiming the entry of a protected class will have some sort of negative impact on property values.
The Americans with Disabilities Act (ADA) requires
that reasonable accommodations be provided for people with disabilities. The answer is that reasonable accommodations be provided for people with disabilities. The ADA requires that reasonable accommodations be provided for the disabled both in employment and in places of public accommodation. The ADA does not address all discriminatory employment practices. Discriminatory employment practices are prohibited by other federal and state laws. The ADA does not require that all real estate be free of barriers but does require places of public accommodation, such as a rental office, to be handicap accessible. The ADA does allow for disabled persons to pay for costs for reasonable accommodations to rental property.
CFPB states all of the following for residential loans EXCEPT A) the borrower may cancel the first home purchase loan transaction within three days after settlement. B) a new loan closing disclosure must be used at new loan closings. C) borrowers must receive information on settlement charges. D) lenders must provide borrowers with a new loan estimate of closing costs.
the borrower may cancel the first home purchase loan transaction within three days after settlement. The answer is the borrower may cancel the first home purchase loan transaction within three days after settlement. A borrower has no rights to cancel a first or second home purchase loan but does have cancelation rights for other loans such as those for refinancing or home equity. CFPB does require that lenders provide borrowers with a new loan closing disclosure that states all charges to be paid by the borrower and the seller at settlement of the loan. Lenders must provide a new loan estimate of closing costs no more than three business days after receiving a loan application along with information on settlement costs.
A person with a physical disability has found an apartment that must be remodeled to accommodate her needs. All of the following are allowed by the landlord in this case EXCEPT A) that the landlord can review the renovation plans and require qualified contractors to perform the work. B) lease terms requiring the tenant to return the property to its original condition. C) the disabled tenant be required to pay a larger security deposit to cover the costs of returning the unit to its original condition. D) lease terms stating the tenant will pay for all the renovations.
the disabled tenant be required to pay a larger security deposit to cover the costs of returning the unit to its original condition. The answer is the disabled tenant will be required to pay a larger security deposit to cover the costs of returning the unit to its original condition. Federal fair housing laws prohibit discrimination against a disabled person. A landlord may not require a larger security deposit from a disabled tenant. Disabled persons have the right to reasonably modify the space at their expense. The landlord has the right to approve the modifications and may insist that the changes be made by qualified contractors. The landlord may also require the tenant to place money in an escrow account to restore the space to its original condition when the tenant moves out. Putting all the terms into writing will protect all parties.
A house for sale was advertised, ''Fine executive home in an exclusive neighborhood, suitable for an older couple; near St. Mary's Church.'' All of the following are true EXCEPT A) an exclusive neighborhood could be interpreted to mean that minorities are not welcome. B) this is descriptive of the property for sale and a good ad. C) the ad could appear to imply that younger families with children are not welcome. D) the neighborhood could appear to be undesirable for people who do not follow the same religion as those at St. Mary's Church.
this is descriptive of the property for sale and a good ad. The answer is this is descriptive of the property for sale and a good ad. The ad could be construed as discriminatory as it may indicate a preference for younger families with no children and possibly those of a certain faith. The term "exclusive" could be considered to indicate the neighborhood is not appropriate for minorities.