Section 6: Federal and State Housing Laws Flashcards Preview

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Flashcards in Section 6: Federal and State Housing Laws Deck (29):
1

Annual percentage rate (APR)

Includes the interest rate and other loan costs and represents the true yearly cost of credit

2

Blockbusting

To use the entry, or rumor of entry, of a protected class into a neighborhood to persuade owners to sell

3

Civil Rights act of 1866

Prohibits any type of discrimination based on race in ALL real estate transactions (Sale or rental) without exceptions

4

Fair Housing Act

created protected classes of people and prohibits discrimination when selling or renting certain residential property

5

Familial status

Protected class of people under the the Fair Housing Act, consisting of families with children younger than 18 and pregnant women

6

Good faith estimate

Closing (settlement) costs lists of the charges the buyer is likely to pay at closing

7

Handicap status

A protected class of people under the Fair Housing Act who have a physical or mental impairment that interferes with normal life functions

8

Property reports

Disclosure documents required under the federal Interstate Land Sales Disclosure Act

9

Public Accomodations

Facilities open to the public, including sales and rental establishments, hotels, and shopping centers

10

Redlining

To deny loans or insurance coverage by a lender or insurer or presenting different terms or conditions in certain neighborhoods

11

Servicing disclosure statement

Discloses to the borrower whether the lender intends to service the loan or transfer it to another lender or Servicing company

12

Special information booklet

contains consumer information regarding closing services for which the borrower may be charged at closing

13

Steering

Channeling protected-class homeseekers away from areas that are not mixed with that class into areas that are

14

Triggering terms

include certain credit terms or specific financing information in an advertisement

15

Truth in Lending Act (TILA)

is a federal law that is part of the consumer credit protection Act, and implemented by the federal Reserve Board's Regulation Z. The act ensures that borrowers and customers of consumer credit are given information regarding the cost of credit so that consumers can compare credit terms available

16

Civil Rights Act of 1964

Prhoibits disvcrimination based on race, color, religion, or national origin
- Applies to public accomodations
- Applies to public facilities operated by state or municipal governments

17

What are 7 protected classes?

- Color
- Race
- Religion
- Sex
- National Origin
- Familial Status
- Handicap Status

18

What classes are NOT protected under the Fair Housing Act?

- Age
- Occupation
- Marital Status
- Sexual Orientation

19

What are exemptions for housing for older persons?

Certain housing is exempt from familial status protection if:
- All units are occupied by persons 62 years of age or older
- At least 80% of units are occupied by one or more persons 55 years or older

20

What is the Truth in Lending Act?

- Requires lenders to disclose the annual percentage ratte and all costs associated with credit

21

Three-day right of rescission

- Does NOT apply to first mortgages
- Applies o most consumer loans, including home equity lines of credit, second mortgages, and refinance loans

22

Coastal Management Act

- Administered by the EPA
- Designed to protect coastal areas
- Participation by states is voluntary (Federal funds available to states that do participate)
- Attempts to reduce nonpoint source (NPS) pollution

23

What is required of brokers who hold landlord funds?

If a real estate broker holds the funds on behalf of a landlord, the broker must abide by real estate license law concerning escrowed funds

24

Florida Residential Landlord and Tenant Act

Helps to put tenants and landlords on a more equitable basis

25

How long after a notice is posted by a sheriff will an eviction take place?

24-hours

26

What must advertising containing triggering terms disclose?

- Amount or percentage of down payment
- Terms of repayment
- Annual Percentage Rate (APR)

27

Equal Credit Opportunity Act

-Ensures that financial institutions and firms engaged in extending credit will make credit available with fairness and without discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or receipt of income from public assistance programs

28

RESPA

- Real Estate Settlement Procedures Act
- Enacted to ensure buyers are informed regarding the amount and type of charges they will pay at closing

29

What loans are exempt from RESPA?

- Construction loans, EXCEPT those intended for conversion into permanent loans
- Loans to finance the purchase of 25 acres or more