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Flashcards in Straight Knowledge Deck (19):
1

Regulation X

RESPA

2

RESPA

2 reasons

Congress Enacted RESPA in 1974

1. help consumers become better shoppers for settlement services

2. Eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services

3

TILA

Purpose

Promote the Informed use of credit.

4

State Usury Laws

imposes Limits for Interest Rates

5

Annual Percentage Rate [APR]

Interest Rate for the whole Year as applied on a loan, mortgage loan, credit card, etc

EXPRESSED AS AN ANNUAL RATE

6

Early Disclosure

Provides borrower with a clear picture of the
-type of loan
-length of loan
-payment schedule
-good faith estimate of loan

7

RESPA

Regulation X

8

Settlement Services Include [RESPA]

- Originating the Loan
- Attorney Services
- Real Estate Agent Services
- Real Estate Broker Services
- Inspections
- Credit Reports
- Appraisals
- Preparing Closing Documents [Processing & Underwriting]
- Agent Related Services

9

Sherman Anti Trust Act

1890 - Congress
Federal Statute in the Antitrust Law (Competition Law)

Law Attempts to Prevent the artificial raising of prices by restriction of trade or supply

10

Price-Fixing in Real Estate

occurs in Real Estate when competing brokers agree to set sales commissions, fees, or management rates.
ILLEGAL.

11

Price-Fixing Definition

practice of setting prices for products or services rather than letting competition in the open market establish those prices

12

Conspiracy to Boycott

happens when a group of competitors agree not to deal with another firm or when brokers collectively decide not to deal with a third party to eliminate competition

13

Tie-In Agreements

agreement to sell one product only if the buyer purchases another product as well. tied together.

14

Antitrust Violations [most common]

Price-fixing
Group Boycotting
Imbalances Commission Splits
Ties in Agreements
Allocation of Customers or Markets

15

Fair Housing Laws

1968 - Prohibited discrimination in the house buying process

16

Jones vs. Mayor

1968 supreme court case

regulate the sale of private property in order to prevent racial discrimination based upon the 13th amendment

17

Federal Fair Housing Act

April 11, 1968
Expanded on previous acts and prohibited discrimination based on RACE + RELIGION + NATIONAL ORIGIN + SEX + HANDICAP + FAMILY STATUS concerning the sale, rental, and financing of housing

18

Redlining

FINANCES

not selling to certain neighborhoods - judging the poor communities

19

Panic Selling

SELLERS:

"You better sell because THOSE people are taking over this neighborhood"