Section 4 (Part I)

Limited buyer income, property location and price, and a home buying education course are all eligibility requirements for ______.

A CalHFA mortgage assistance program

What's the acronym for the legislation that established processes and procedures for how federal agencies propose and enforce regulations?

APA

Which of these HUD programs allows mortgage lenders to obtain a better price for their mortgage loans in the secondary mortgage market?

Ginnie Mae

Glen is assisting a buyer who makes an offer on a condo in a high-end area of town. The seller refuses the offer, and Glen's client believes this is discriminatory behavior. How should Glen advise his client in this situation?

Glen can recommend filing a complaint with HUD about the alleged discrimination.

California's Seller Financing Disclosure Law requires the arranger of credit to provide both the buyer and seller with disclosures. What's the timing requirement for this disclosure?

As soon as possible before the execution of any note or security document

Conrad has purchased a home in California and, as a veteran, he's been able to take advantage of the CalVet home loan program. How does this loan program work?

CalVet holds the legal title to the property until the loan is paid off.

Lucy is a mortgage banker. Her business is regulated by ______.

California Residential Mortgage Lending Act

The neighbors in South Mountain Village got tired of all the drug dealing and criminal activity surrounding a shop, the Mystery Market. The community boycotted the store, which eventually closed, and with the help of local financial institutions, a social services center was added to the area. What act is this an example of?

Community Reinvestment Act

Because of the Mortgage Disclosure Improvement Act, the only advance fee that a creditor can charge to a consumer before providing required loan disclosures is a(n) ______ fee.

Credit report

Which of the following is part of the Consumer Financial Protection Bureau's mission of consumer protection?

Enforce consumer financial protection laws.

Gregory and Dianne are American citizens of Cuban origin, and when their home loan is denied, they suspect discrimination. Which of the following acts prohibits lender discrimination on the basis of the protected class of national origin?

Equal Credit Opportunity Act

When George is working with buyers who can't afford a large down payment, he recommends that they look into ______.

FHA financing

What's the acronym for the legislation that requires financial institutions to document and publicly disclose lending practices?

HMDA

Lenny the lender is reviewing mortgage applications. Applicant Catherine has a good credit history, but the property she wants to buy is in an area of town where home prices have been headed down, and neighborhoods are starting to look grim. Lenny denies Catherine's loan application. What California legislation makes Lenny's decision illegal?

Housing Financial Discrimination Act (Holden Act)

Which of the following can help your very low-income clients either purchase or rent housing in the private market?

Housing choice vouchers

Brittany is a real estate licensee with a mortgage loan originator endorsement. When she acts as an MLO, the California Real Property Loan Law requires her to give her clients a disclosure that ______.

Informs the prospective borrower about the terms of the loan being offered The licensee must deliver this disclosure to the prospective borrower within three business days of receiving a loan application.

What's the purpose of the Equal Credit Opportunity Act?

It requires lenders to make credit equally available to all creditworthy applicants, regardless of the applicant's protected class status.

Licensing by the California Residential Mortgage Lending Act allows a mortgage banker to ______.

Make and service any federally related mortgage loan

Which of these names is also known as the California Real Property Loan Law?

Mortgage Loan Broker Law

Maxine is purchasing a small craft shop, including the underlying real estate. She applies for a commercial loan from her federally insured bank to complete the purchase. Is Maxine's transaction covered by the Real Estate Settlement Procedures Act?

No; commercial and business loans are exempt from RESPA requirements.

The Dodd-Frank Act created the CFPB in part to regulate ______, which were among the largest originators of subprime mortgages prior to the financial crisis of 2007‒2008.

Non-bank lenders

Bo's real estate ad states: "Custom homes for sale with scenic mountain views. Easy financing and low down payments." What else must be included in the ad in order for it to comply with TILA?

Nothing

HUD's ______ has a goal of increasing the availability of safe and affordable housing to Native American families.

Office of Native American Programs

HUD's second goal in support of its mission is to meet the need for ______ homes.

Quality affordable rental

Natalie is a licensee who assists buyers in the purchase of HUD ______ when they're listed for sale.

Repossessed homes

The Mortgage Disclosure Improvement Act amends ______ in terms of the timing of lender disclosures.

TILA

Dawn and Steve are planning to purchase a home, but are wary of the commitment of a mortgage. However, they have no other way to make home ownership a reality, so they decide to educate themselves on the process for obtaining a mortgage loan. Where would you recommend they go for clear, consumer-oriented education on this topic?

The CFPB website

In a residential real estate sale involving a federally related loan, what entity is required to provide Real Estate Settlement Procedures Act disclosures to the consumer?

The consumer's lender

Joyce and Danny purchased a home in 2009 for $280,000. They received a homebuyer credit of $8,000. Their friends Margie and Scott purchased a home in 2010 for $320,000. Margie and Scott didn't receive a homebuyer credit. Why not?

The homebuyer credit was part of the stimulus package enacted in 2009 and was only effective between January and December of 2009.

One of HUD's goals reflects a response to financial issues experienced in the housing market during the 2007 economic crisis. The goal is ______ to bolster the economy and protect consumers.

To strengthen the housing market

Regulation Z codifies the rules of the ______.

Truth in Lending Act

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