Section 2, Unit 2: Federal Legislation Affecting the Real Estate Industry
Which of the following is a triggering term when used in advertising financing? "10% down" "Financing available" "Low monthly payments" "We work with all credit histories"
"10% down"
What is a red flag for an Equal Credit Opportunity Act violation? An applicant was denied a loan because of a low credit score. A person was denied credit without explanation or given resources that explain why. The interest rate was not listed on the application. The lender only offered one financing option.
A person was denied credit without explanation or given resources that explain why.
What is an annual percentage rate?
A standardized measure for interest rates and other costs of the loan
_______ is a standardized measure for interest rates and other costs of the loan. _______ is a standardized measure for interest rates and other costs of the loan. Annual percentage rate Discount rate Federal funds rate Prime rate
Annual percentage rate
Which of the following is included in HMDA data? Borrower names Borrower Social Security numbers Census tract information Specific property addresses
Census tract information
The ______ was enacted in 2010 to create stricter regulation of the financial services industry to reduce costs for consumers from (for instance), undisclosed kickbacks.
Dodd-Frank Wall Street Reform and Consumer Protection Act
The Community Reinvestment Act (CRA) requires lenders to post their policies on what? Charity Hiring Human resources Lending
Lending
Which document provides an estimate of the costs a buyer is likely to pay at settlement before the closing? Abstract of title Closing Estimate Loan Estimate Sales agreement
Loan Estimate
What act was introduced to combat discriminatory lending practices against individuals and businesses in low- and moderate-income neighborhoods?
The Community Reinvestment Act
What government agency handles ECOA complaints?
The Consumer Financial Protection Bureau
The Housing and Economic Recovery Act and the American Recovery and Reinvestment Act were enacted in response to ______. The civil rights era The Great Depression of the 1930s The recession and banking scandals of the 1980s The subprime mortgage crisis and economic meltdown of 2007-2008
The subprime mortgage crisis and economic meltdown of 2007-2008
What's the purpose of the ECOA? To increase employment To prevent discrimination in lending To prevent discrimination in transportation To simplify credit card applications
To prevent discrimination in lending
