Fed Law Flashcards
Truth in Lending Act
The Truth in Lending Act is designed to protect consumers in credit transactions by requiring clear disclosure of vital terms of the lending arrangement and all costs.
What enforces and administers he truth in lending act.
The federal trade commission
Truth in lending also gives consumers the right to cancel certain credit transactions that
involve a lien on a consumer’s principal dwelling. The borrower usually has the right to rescind the agreement until midnight of the third business day after the promissory not was signed.
truth in lending act lender must
disclose to the borrower the APR.
In other words the APR is the total cost of credit to the consumer, expressed as an annual percentage of the amount of credit granted.
APR is intended to make it easier to compare lenders and loan options.
APR
APR is an expression of the effective interest rate that the borrower will pay on a loan, taking into account one-time fees and standardizing the way the rate is expressed.
In other words the APR is the total cost of credit to the consumer, expressed as an annual percentage of the amount of credit granted.
APR is intended to make it easier to compare lenders and loan options.
federal Fair Housing Act
The 1968 act expanded on previous acts and prohibited discrimination based on race, religion, national origin, sex and as amended, handicap and family status concerning the sale, rental, and financing of housing.
Jones v. Alfred H. Mayer is a united states supreme court case which held that Congress could regulate the sale of private property in order to prevent racial discrimination based upon the 13th amendment .”
When the Fair Housing Act was first enacted, it prohibited discrimination only on the basis of race, color, religion and national origin.
In 1974, sex was added to the list of protected classes, and in 1988, disability and familial status were added.
Federal fair housing act
prohibited discrimination based on race, religion, national origin, sex and as amended (transvestites are not protected), handicap and family status concerning the sale, rental, and financing of housing.
The Americans with Disabilities Act of 1990
prohibits, under certain circumstances, based on discrimination and disability.
What is The United states department of housing and Urban Development responsible for
the cabinet agency with the statutory authority to administer and enforce the Fair Housing Act.
Examples of violations of Fair housing are steering, and Blockbusting.
Steering
Steering is the illegal practice of channeling home seekers to particular areas, either to maintain the homogeneity of an area or to change the character of an area, which limits their choices of where they can live.
Blockbusting
“oh know there goes the neighborhood”
Blockbusting, which is also known as Panic Selling and Panic Peddling is an Illegal racial discrimination practice wherein real estate brokers attempt to change the racial composition of a neighborhood by encouraging listings and sales in a neighborhood. In short, fair housing is the elimination of discriminatory practices and policies in the housing market.
Redlining
The term refers to the presumed practice of mortgage lenders of drawing red lines around portions of a map to indicate areas or neighborhoods in which they do not want to make loans. Redlining on a racial basis has been held by the courts to be an illegal practice.
Sherman antitrust laws
Now we shall talk about the Sherman antitrust laws, which prohibit price fixing, group boycotting, the allocation of customers or markets, or tie-in agreements. Price fixing is prohibited. This means that competing brokers, real estate governing bodies, or multiple listing organizations cannot agree to set sales conditions, fees, or management rates. Group boycotting is also illegal under the antitrust laws. This means that two or more brokers cannot conspire against another business, or agree to withhold their patronage to reduce competition.
Tie-in Agreements
The allocation of markets or customers would occur when brokers agree to divide their markets or customers and not compete for the other’s business. Tie-in agreements are also illegal. For example, a real estate broker owns 10 acres of vacant land. A builder wants to buy the land, but the broker refuses to sell unless the builder agrees to list the property with the brokerage firm. This tie-in arrangement is illegal. An individual may be fined a maximum of $100,000 and be sentenced up to three years in prison – and a corporation may be fined up to $1 million – for breach of the Sherman antitrust laws.
