RE: Government Influence on Financing
Equal Credit Opportunity Act (ECOA)
Enacted in response to discriminatory practices by lenders; requires lenders to treat all credit applicants equally according to their creditworthiness, not according to characteristics such as religion or race.
The consumer's lender
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?
CRA (Community Reinvestment Act)
In order to discourage redlining, this act of 1977 requires lenders to disclose their activities relative to how they operate in their home communities. Requires lenders to invest in development and rehabilitation of the communities they serve.
To provide the estimated closing costs for Lawrence's loan
Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's one purpose of this document?
Dodd-Frank Wall Street Reform and Consumer Protection Act
The ______ was enacted in 2010 to create stricter regulation of the financial services industry to reduce costs for consumers from (for instance), undisclosed kickbacks.
Regulation Z
Under what regulation, mortgage lenders must follow TILA disclosure requirements for any real estate advertisements that includes credit terms?
The Administrative Procedure Act
What act helps to ensure that no governmental entity acts without an opportunity for public input by requiring public disclosure and discourse before rulemaking?
Real Estate Settlement Procedures Act (RESPA)
What act protects borrowers from overcharges by requiring disclosure and prohibiting kickbacks. Commercial and business loans are exempt from this.
HUD
What department has a mission of expanding home ownership in the U.S. by providing access to financing, making homes more affordable, and stamping out discrimination in housing?
Regulation Z
What is this acceptable ad based on? Get a low interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a 30-year fixed rate with no points.
GNMA (Ginnie Mae)
What program guarantees the timely payment of principal and interest on MBSs that are secured by pools of government home loans?
FHA (Federal Housing Administration)
What program insures mortgages on single-family and multi-family homes?
FHEO
What program works to eliminate housing discrimination, promote economic opportunity, and achieve diverse, inclusive communities?
Truth in Lending Act (TILA)
What requires full disclosure to a borrower of the terms and conditions of credit? Requires lenders, when advertising trigger loan terms, to include all pertinent terms so as not to mislead consumers.
HMDA (Home Mortgage Disclosure Act)
What was created in 1975 that allows review of lending data to evaluate where mortgages are given and where they are not? Requires financial institutions to report and publicly disclose mortgage information to help public officials determine if community housing needs are being me
