ReU3ch11

What is the stated purpose of the Federal Reserve?

What are the three ways the Fed controls the flow of money into and out of the economy?

The Federal Deposit Insurance Corporation insures deposits up to how much?

What does the Equal Credit Opportunity Act protect the public against?

Why must statistical information be reported in conformance with the Home Mortgage Disclosure Act?

What does the TRID Rule require lenders to provide borrowers?

What are the time line constraints regarding the Loan Estimate?

What is the purpose of the Truth in Lending Act?

What is an example of an advertising violation under the Truth in Lending Act?

What seven items must be specified on the settlement statement?

What does the Fair Credit Reporting Act require that lenders do?3

Under the Taxpayer Relief Act of 1997, how often may the tax benefit be taken?

Maintains sound banking system and strong economy for the nation by
Raising or lowering discount rate
Changing reserve requirements
Selling securities on the open market

regulates the savings associations

Federal Deposit Insurance Corporation

insures deposits up to $$_______

provides suitable housing for every American
has responsibility for many facets of real estate finance

no person is to be discriminated against in the purchase, rental, or financing of housing on the basis of race, color, religion, national origin, gender, handicap, and familial status
familial status does not apply to housing for older persons
many states and local jurisdictions have added other protected classes under their own Fair Housing laws

protects the public from discrimination by lenders on the basis of five of the protected classes as stated in the Fair Housing Act (race, color, religion, national origin, and sex), and adds the additional categories of age, marital status and the receipt of income through any public assistance program.

Statistical information must be reported each year in conformance with the Home Mortgage Disclosure Act of 1975 to insure that lenders are not "redlining" certain individuals or neighborhoods to exclude them obtaining a mortgage.

protects the public from unnecessarily high settlement costs.
requires lenders to provide a HUD "Your home loan toolkit" booklet and an estimate of all costs related to settlement to borrowers within 3 days of loan application
requires the use of the Closing Disclosure form at closing
limits the amount of money that may be held in escrow accounts to the equivalent of two months' payments
no limit to variations in charge for services selected by the borrower
lender must deliver the Loan Estimate to the borrower within 3 days after loan application
seven-day waiting period (excluding Sundays and federal holidays) from the time a lender delivers its estimate of the cost of the credit and the closing

insures that consumers can compare the cost of making a purchase using credit to the cost of making the same purchase with cash
Regulation Z requires full disclosure of all elements of financing.
disclosures are always required for credit extended for the purchase of real property
advertising to offer credit is subject to requirements of full disclosure if it includes:
a down payment percentage or amount
an installment payment amount
a specific amount for a finance charge
a specific number of payments
a specific repayment period
a statement that there is no charge for credit
"no down payment required" is advertised without any other information is a violation

____requires lenders to use a specific form to disclose settlement costs to the buyer
Settlement statement must specify:
settlement charges
title charges
recording and transfer fees
reserve deposits required
tax and insurance escrow deposits required
any other fees or charges
total closing costs

ACT that
Keep all credit information confidential.
Obtain authorization from a consumer in order to seek the customer's credit information.
Reveal the sources of the credit information to the consumer

Act that
ensures that financial institutions provide credit to persons living within the community served by the bank
requires lenders to promote homeownership education in the areas they serve

Act that
provides benefits for persons selling their personal residence and/or investments by reducing the capital gains tax on the sale of property

Act that
does not directly affect mortgage lending, but is important in that homebuyer education and counseling programs must always be made available to all persons
Real estate and lender offices must be accessible to the consumer, with auxiliary aids or services provided if needed

Act that
requires that borrowers seeking to finance real estate through federally related loans obtain flood insurance if the property is located in a designated

Act that
Wall Street reform law created the Consumer Financial Protection Bureau to set and enforce clear, consistent rules for the financial marketplace
Consumer Protections with Authority and Independence
Ends Too Big to Fail Bailouts
Advance Warning System, Financial Stability Oversight Council
Transparency & Accountability for Exotic Instruments
Executive Compensation and Corporate Governance
Protects Investors
Enforces Regulations on the Books

The Office of Thrift Supervision was created by
the Federal Deposit Insurance Corporation.
the Federal Home Loan Bank Board.
the Financial Institutions Reform, Recovery, and Enforcement Act.
the Federal Savings and Loan Insurance Corporation.

The law enacted to keep credit information confidential is known as the
Fair Credit Reporting Act.
Community Reinvestment Act.
RESPA
ECOA

Under the Truth in Lending Act, full disclosure is required in any advertising to offer credit if
no specific number of payments is included.
it does not include a specific repayment period.
it includes an installment payment amount.
no down payment percentage or amount is included.

When the Federal Reserve sells securities,
it adds money to the economy.
it takes money out of the economy.
it raises the cost of living.
it adds to the national debt.

Which of the following groups was created in 1913?
The Federal Reserve System
HUD
Office of Thrift Supervision
Federal Deposit Insurance Corporation

One way the Federal Reserve tries to boost the economy is by
lowering reserve requirements for banks.
shrinking the money supply.
selling Treasury Bills.
raising the discount rate.

In 1988, two categories of protected classes were added to those protected classes already covered under the Fair Housing Act for a total of seven federally protected classes. Which of the following classes were added?
Race and National Origin
Handicapped and Race
Familial Status and Handicapped
Age and Familial Status

Which agency was created by the Dodd-Frank act to identify and address systemic risks posed by large, complex companies, products, and activities before they threaten the stability of the economy?
Consumer Financial Protection Bureau
Federal Reserve System
HUD
Financial Stability Oversight Council

ECOA's role in mortgage financing is to
standardize closing documents and disclosures to buyers and sellers.
protect the public from discriminatory lending.
disclose accurate loans costs to consumers.
prevent discrimination in residential purchase transactions.

The legislation created in 1968 to enable comparison of financing costs and require full disclosure of lender charges is called the
Home Mortgage Disclosure Act.
Fair Credit Reporting Act.
ECOA.
Truth-in-Lending Act.

Which of the following falls under HUD's responsibilities?
Direct the FHA insured loan program
Enforce FDIC regulations
Meet housing needs for African Americans
Regulate Fannie Mae

Which of the following is not a responsibility of HUD?
Overseeing the Fannie Mae and Freddie Mac operations
Managing the Office of Thrift Supervision
Managing Ginnie Mae
Meeting housing needs of Native Americans

The purpose of the Community Reinvestment Act is to
keep credit information from unscrupulous mortgage lenders.
ensure banks in a market area serve borrowers in that particular area.
regulate each bank's qualifying guidelines for loans.
discourage partnerships between banks and real estate professionals in sponsoring educational programs

The enforcement of the Fair Housing Act is a responsibility of
FHLMC
HUD
FTC
FCC