REF - Chapter 3 - Additional Government Influence
What year was HUD created?
1965
The interstate land sales full disclosure act was enacted in what year?
1968
The Equal Credit Opportunity Act was enacted in what year?
1974
A completed closing disclosure form must be provided to the borrower at least __________ prior to closing?
3 days
The lender must provide the borrower with a loan estimate form within how many days of the loan application being filed?
3 days
Real Estate Settlement Procedures Act (RESPA)
A consumer protection statute, first passed in 1974. The purpose of RESPA are 1) To help consumers become better shoppers for settlement services and 2) To eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services.
Equal Credit Opportunity Act (ECOA)
A federal law enacted in 1974 which makes it unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction, on the basis of race, color, religion, national origin, sex, marital status, or age.
Fair Housing Act of 1968
A federal prohibition that protects buyer/renter of a dwelling from seller/landlord discrimination with regards to race, color, religion, gender, national origin, familial status, or disability.
Mortgage Insurance Premium (MIP)
A one-time premium paid at the closing pursuant to the purchase.
HUD Form No. 1
A standard settlement form required by RESPA.
Private Mortgage Insurance (PMI)
A type of mortgage insurance required on conventional loans in which the homebuyer makes a down payment of less than 20% of the purchase price.
Open-end mortgages are most commonly found for which property type?
Agricultural properties
Who is responsible for the enforcement of the interstate land sales disclosure act?
Consumer financial protection bureau
PMI only applies to what types of loans...?
Conventional loans
Under the ??? Mortgage originators must report the racial characteristics and gender of their applicants.
Equal credit opportunity act
Some lenders may require funds for property taxes and other propert-related expenses to be held in an...?
Escrow account
The Farm Credit Administration regulates the _______ institutions?
FCS
Farmers and ranchers can obtain a loan through which of the following...?
Farm Credit System
The Federal Agricultual Mortgage Corporation is known as...?
Farmer Mac
What originates long-term mortgages for farmers and ranchers...?
Federal land bank association
What program is offered by HUD?
Good neighbor next door program
The consumer financial protection bureau enforces...?
Home mortgage disclosure act
According to RESPA, a referral fee in the form of cash is considered an...?
Illegal kickback
What is responsible for brining industries to a region in an effort to improve community growth...?
Industrial Development Agencies
Mortgage insurance offers protection for the...?
Lender
RESPA requires lenders to provide borrowers with...?
Loan estimate
According to the good faith estimate, a borrowed interest rate can change until the borrower does which of the following...
Locks-in the interest rate
If a borrower obtains an FHA insured loan and only makes a down payment of 5% what must the borrower purchase...?
Mortgage insurance premium
What mortgage allows for more flexible payments from the borrower?
Open-end mortgage
According to the Good faith estimate form, the borrowed adjusted origination charges equal the amount of points paid plus the...?
Origination charges
A borrowers charged for all other settlement services, as stated in the good faith estimate includes which of the following...?
Owners title policy
The Consumer Financial Protection Bureau (CFPB) oversees the enforcement of which of the following statutes...?
RESPA
U.S Department of Housing & Urban Development (HUD)
Responsible for the implementation and administration of U.S. government housing and urban development programs.
The USDA rural development program combines the farmers home administration, the agricultural cooperative service administration and the...?
Rural development administration
The Farm Credit System provides loans for which of the following...?
Rural homeowners
The Housing Choice Voucher Progeam was formally known as...?
Section 8
The housing choice voucher program is an example of...?
Subsidized housing
Good faith estimate
The lender's estimate of the borrower's settlement costs; RESPA is required to furnish it to the borrower at the time of the loan application.
The closing disclosure must be revised if there is a significant change to which of the following...?
The loans APR
Annual Percentage Rate (APR)
The relative cost of credit as determined in accordance with Regulation Z of the Board of Governors of the Federal Reserve System for implementing the Federal Truth in Lending Act.
Which of the following combines the Farmers Home Administration, the agricultural cooperative service administration and the rural development administration?
USDA Rural Development Program
