Unit 2: Real Estate Practice
TRID rules consolidates 4 existing disclosures under TILA and RESPA into two forms:
(1) loan estimate form (estimated) must be delivered or placed in the mail no later than 3 business days after receiving the consumer's loan application. (2) Closing disclosure (actual) must be provided to the consumer prior to consummation of transaction. If creditor provides a corrected disclosure, they may have to provide consumer with an additional 3 business days.
Violations of the Fair Employment and Housing Act can...
-require a discriminatory seller to sell home (if still available) or to sell or rent a like housing accommodation (if available) -punitive damages of up to $10,000, as well as actual damages.
At the federal level, complaints of fair housing law must be filed with HUD within _______________.
1 year
At the federal level, complaints of fair housing law can be filed directly in federal court within ________________.
2 years
TILA: Requires a __________________ for refinances of owner-occupied, one to four unit properties and home equity loans. Recession does not apply to ___________________ or ______________.
3 day right of recession, home purchase, construction loans
Mobile home ads must be removed within ________________ of home no longer being available for sale.
48 hours
how does the Unruh Act define a senior citizen?
62 years and older or a person who is 55/older and living in a senior citizen housing development
prohibited discrimination against handicapped persons include those persons afflicted with _________________.
AIDS
Under TILA (Federal Reserve Regulation Z) what are the 4 primary disclosures required of lenders?
APR (annual percentage rate), total finance charges associated with the loan (includes nominal interest, origination fee, borrower-paid points, mortgage insurance costs), the total number and amount of all payments, the total amount financed.
blind ads
Advertisements placed by a sales agent real estate licensee that do not disclose the person or entity placing the ad is a real estate licensee (should disclose the name of their brokerage)
Bait and Switch Advertising
Advertising one product (the "bait") at a very attractive price, then informing the customer that the advertised product is either unavailable or of poor quality, convincing the customer to purchase a different, more expensive product. NOTE: Vague generalities and/or obvious exaggerations collectively called puffery -- are not deceptive.
What loans are exempt from TILA?
Agricultural, business, and construction
ADA
Americans with Disabilities Act
Americans with Disabilities Act
Applies to public accommodations: requires that commercial facilities open to the public have building codes to make them accessible (prohibits discrimination against the disabled)
The Housing Financial Discrimination Act of 1977 is administered by?
California Department of Business Oversight
Rumford Fair Housing Act
California law that prohibits discrimination in the sale, rental, lease, or financing of housing.
Software that helps real estate persons find and support clients is called a _________________.
Client relationship management software (CRM)
what does CAN-SPAM stand for?
Controlling the Assault of Non-Solicited Pornography and Marketing
ECOA
Equal Credit Opportunity Act
Exemptions from the Fair Housing Act are?
FSBO, religious property (can discriminate based on religion, ex. seminary dormitory) , private clubs(can provide housing limited to their members, but cannot limit membership based on race, color, etc.), Single-family residence (unless has more than 3 residences at one time, and only applies once in every 2 year period, also cannot engage in discriminatory advertising), owner occupied prop involving 2 but no more that 4 units, Housing for elderly (80% of occupants are occupied by at least one person who is 55 or older) (None of these exemptions can have discriminatory advertising)
FEHA
Fair Employment and Housing Act
which amendment added to the groups protected by the Civil Rights Act of 1968? What are those classes?
Fair Housing Amendments Act of 1988. (race, religion,. color, national origin, sex) sexual orientation, marital status, ancestry, age, source of income, disability, (handicapped persons, including those afflicted with AIDS) and familial status including pregnant persons.
violations of CAN-SPAM can result in?
Fines more than $40,000 per message
Who investigates complaints regarding the federal fair housing act?
HUD
The Housing Financial Discrimination Act of 1977 is also known as the __________________.
Holden Act
Housing Financial Discrimination Act of 1977
Holden Act - prohibits discriminatory loan practices on the part of financial institutions (banks, savings and loan associations, or other financial institutions, including mortgage loan brokers, mortgage bankers and public agencies which regularly make, arrange, or purchase loans for the purchase, construction, rehabilitation, improvement, or refinancing of housing
TRID rules apply to closed-end credit transactions secured by real property, but do not apply to:
Home equity line of credit loans (HELOC), reverse mortgages, or loans secured by mobile homes/dwelling not attached to real property.
steering
Illegal practice (under fair housing laws) of channeling home seekers to or away from particular neighborhoods based on race, religion, national origin; an illegal limitation of a purchaser's options
redlining
Illegal practice under the Housing Financial Discrimination Act of 1977 (discriminatory loan practices) that discriminates on the basis of racial characteristics or trends in a geographical area (A process by which banks draw lines on a map and refuse to lend money to purchase or improve property within the boundaries.)
Mobile home ads should not state that the mobile home can be transported on CA highways if ______________________.
It does not have appropriate equipment to do so.
Which case led to the U.S. Supreme Court decision to create the Civil Rights Act of 1968 upholding the Civil Rights Act of 1866 and barred racial discrimination applying to private properties.
Jones vs. Mayor
One of the major reasons for real estate licensees to have a computer is to access the _________________.
MLS
Under TILA (federal), if only APR is included in an ad, then ______________.
No further disclosures are required.
promotes the informed use of credit by requiring advance disclosure of loan terms and cost
TILA (Federal Reserve Regulation Z)
TRID stands for
TILA-RESPA Integrated Disclosure (truth in lending, real estate settlement procedures act)
The Civil Rights Act of 1968 and the Fair Housing Amendments of 1988 are enforced by ___________________.
The Department of Housing and Urban Development (HUD)
Panic selling
The illegal practice (under fair housing laws) of inducing owners to sell their homes (often at a deflated price) by suggesting that the ethnic or racial composition of the neighborhood is changing, with implication that property values will decline as a result. Also called Blockbusting.
Bait and switch advertising is a federal offense under the ___________________.
Truth in lending act
TILA-RESPA stands for
Truth in lending act- real estate settlement procedures act
e-Pro
advanced certification available to real estate professionals through the National Association of REALTORS (NAR) to develop expertise in technology
abbreviation for agent
agt.
TILA: The ___________ and ____________ are the only specific finance terms allowed in advertising without triggering a full disclosure requirement.
asking price, APR
ADA: Disabled residential tenants may make modifications ______________________. They must return the unit to its original condition.
at their own expense
abbreviation for broker
bkr.
what is another term for panic selling?
blockbusting
The penalty for violating the Unruh Civil Rights act
can be up to three times actual damages and not less than $4,000. If RE licensee is involved, license may be revoked.
HUD, FHA, or VA ______________ revoke a real estate license
cannot (only re comissioner can do this)
ADA: new ________________ must be accessible by the disabled
commercial construction
The 1948 U.S. Supreme Court decision in the case of Shelly vs. Kraemer
deed restrictions based on race were unenforceable and in violation of the 14th amendment to the constitution
a professional certification that indicated that a real estate professional has advanced training in technology?
e-Pro
RESPA rules for referral fees
escrow companies and other settlement service providers must not give, and no real estate persons may receive, any fee, kickback, or referral fee as a part of real estate settlement service involving a federally-related mortgage loan.
exceptions to unsolicited calls under the national do not call registry include?
existing business relationships within 18 months, if the call is made within 3 months of inquiry, where you have written permission to call, commercial numbers, calls made to conduct surveys (but no solicitation can be made)
in 2011 HUD concluded that domestic abuse survivors who are denied housing, evicted or deprived of assistance based on violence in the home may have a basis for ___________ of sex discrimination under the ________________________ act and the __________________ act
fair housing, violence against women
CAN-SPAM
federal law intended to protect consumers from unsolicited emails by requiring opt-out provisions, email has a functional return address and physical address of the maker, the subject line indicates that it is an advertisement.
National Do Not Call Registry
federal law; protects consumers from unwanted commercial solicitations
Complaints of fair housing laws can be filed at the ____________ or ___________ level.
federal, state
violations of the National Do Not Call Registry can result in?
fines more than $40,000 for each unsolicited call
The percentage of foreign buyers purchasing properties in the US is ______________________.
increasing
The first step: complaints regarding violation of fair housing laws is for HUD or the state to _____________ the complaint.
investigate
protect against claims of discrimination by _______________________.
keeping all records
A disability is any physical or mental impairment that substantially limits one or more major _____________________. - this includes those suffering with ___________. -alcoholics and drug addicts are protected if _________________, but are not if they are __________________. -the law specifically excludes those convicted of _____________________. -both current and recovered mental patients are protected under the law.
life activities, HIV/AIDS, seeking treatment, using illegal drugs, dealing drugs
Disclosure to borrowers under TILA applies to all re loans except....
loans to corporations, business or commercial loans, seller financing (purchase money mortgage, contract for deed)
SAFE Act
mandates that RE professionals involved with selling or making of loans need to be registered as mortgage loan originators.
real estate licensees cannot advertise or represent that a mobile home is ______________.
new
According to the ADA, a public accommodation is any private entity with facilities _______________________, such as a re office.
open to the public
The Civil Rights Act of 1968
prohibited discrimination in housing based on race, religion, color, national origin and sex. (5 protected classes)
Civil rights act of 1866
prohibits any discrimination based on race in the sale and rental of all property.
Equal Credit Opportunity Act
prohibits discrimination in lending based on applicant's income from public assistance
purpose of federal fair housing laws
provide all persons in the US with fair housing opportunities
The Unruh Civil Rights Act
provides for equal accommodation and services in all business establishments in California
What are the 5 protected classes (Civil Rights Act ___________)
race, religion, color, national origin, sex (1968)
equal opportunity poster
should be displayed in each office or place of business (in the event of an HUD investigation, failure to display can shift burden of proof) The equal housing logo should be used in advertising, but is not a federal requirement.
Violations of the Rumford Act are reported to?
the Department of Fair Employment and Housing (state level)
The Rumford act is now known as____________________.
the Fair Employment and Housing Act (FEHA)
Truth in Lending Act (Federal Reserve Regulation z) purpose
to promote the informed use of consumer credit by requiring advance disclosures of loan terms and costs
TILA only requires disclosure of charges paid by the borrower _________________. Does not include ______________________.
to the lender, all closing costs (also doesnt include payments to 3rd parties-title insurance, legal fees, appraisal, credit report, etc.)
TILA: Info about the down payment, interest rate, monthly payments, or number of payments in an advertisement ______________________ requirement (small print)
trigger the full disclosure l
What will HUD consider if there is a complaint of violation of federal fair housing law?
will perform testing studies on the company, properties shown to the buyer or tenant, see if there is an equal opportunity poster displayed in the office.
