Exam #3 Exam date: April 26th, 2013
Fair housing have been enacted to create an unbiased housing market • A market in which every home seeker has the same opportunity to buy any home in the area he or she chooses, provided the home is within the home seeker's financial needs . • Said another way, fair housing laws are an attempt to prohibit discrimination
Why must licensees and private citizens be aware of undesirable and illegal housing practices?
Because failure to comply can result in suspension/revocation of license. Can end up with fines/jail time.
Everyone has the right to inherit, purchase, lease, sell, hold and convey property
An attempt to guarantee non-discrimination in any and all housing receiving loan assist thru the FHA or VA Issued by JFK
Essentially loan insurance; if lender will make a loan to a person who marginally qualifies for, the FHA will insure (or cover the deficiency in the event of foreclosure) Federal housing admin; programs designed for people who are low income
Will provide loan guarantees for homes, little to no down payment and below market rates, also will pay deficiency A program in exchange for military service
Expand the scoop of executive order #11063 to include all housing recently any form of federal assistance Passed by LBJ
It establishes the protected classes for the first time; covers built homes, rental property and vacant land for residential construction Protected classes: race, color, religion, national origin (ethnicity)
The practice of making oral statements made by someone making prospective entry into an integrated neighborhood Creates an atmosphere of fear
Jones alleged that they were steered to homes in a particular area The ruling… • Supreme court reaffirmed Civil Rights Act of 1968 • Ruled that 1866 doesn’t just apply to public but also private and any exemptions based on race were eliminated
Sale/rental of a home, when home is owned by a person who does not own at least three homes
Two groups • 1. Familial status (rent to people with children under the age of 18; also includes pregnant women) • 2. Handicap both physical and mental
Mental/physical impairment or history of impairment that limits one or more of ones major life activities. Individuals who have AIDS are protected. Does not include people who use/abuse drugs/controlled substances. Both recovered and current mental patients are protected.
Retirement Units Either: All occupants are 62 or over 2. 80% of occupants are 55+
Designed specifically to make credit available to every qualified applicant
1. Martial status (you cannot refuse single mothers)2. Age 3. Dependence on financial assistance
What is the only criteria that a lender can use to determine whether or not an applicant can make payments 4
Prevent discrimination to those who want to make a loan in a geographic area Federally related loans disclose the number of loans applied (who and how much) for and where their loans were made in their service area and this is to be posted in the lobby of the bank
Lenders were only making loans where risk is low and returns are high; now lenders have to meet to the needs of their local customers first then outside customers It was an attempt to stop capital flight