Chapter 5 Vocab Flashcards
(19 cards)
Adverse Action
refers to a type of notice given by a lender when a borrower’s credit application has been denied
Air Loan
The property and borrower do not exist
Civil rights act of 1968
Requires lenders to be fair and not discriminate
Community Reinvestment Act
CRA
- A federal law the prohibits Redlining
- Meets the needs of the community
Department of housing and urban development
Responsible for enforcing the Federal Fair Housing Act
Equal Credit opportunity act
1974 act of congress to further eliminate discrimination
Equal Housing Lender poster
Required to be posted in all mortgage brokers and other direct lenders offices
Executive order 11063
Made it clear the all government related loans would not be denied based on race, color, creed, or national origin
Fair Credit Reporting Act
spells out credit reports rights in detail
Fair Lending
Equal lending opportunity
Federal Fair Housing Act
FFHA -Housing only, Does not apply to nonresidential property -Discrimination applies to National origin color religion race sex familial status handicaps
Fraud for profit
Often includes multiple loans, an elaborate scheme, and collusion of industry professionals who are often paid for participation
High Cost mortgage
A consumer credit transaction that is secured by the consumers principal dwelling
Home Mortgage Disclosure Acr
HMDA
-Exposes incidents of redlining
Home Valuation Code of Conduct
HVCC
-stopped appraisers from being coerced to up the value of a property by three of being cut off or killing the deal.
Truth in lending ACt
TILA
Property Flipping
a recently purchase home is resold for considerable profit with an artificially inflate value, often as a result of collusion with the appraiser
Redlining
illegal process of not making loans in certain neighborhoods due to religious, racial, ethnic, or other social reasons.
Silent Second
Scheme where the the down payment is actually borrowed or carried as a second mortgage by the seller but is not recorded in the purchase agreement. gives the first mortgage lender the impression the buyer has skin in the game
