Arkansas Real Estate License Fair Housing and Federal Laws 1 — Questions and Answers
Question 1: The federal Fair Housing Act of 1968 prohibits discrimination based on which of the following protected classes?
- Race, color, religion, and national origin (Correct answer)
- Age, income, and education level
- Occupation and marital status
- Political affiliation and credit score
Correct answer: Race, color, religion, and national origin
The original Fair Housing Act of 1968 established race, color, religion, and national origin as the initial four protected classes.
Question 2: Which amendment to the Fair Housing Act added familial status and disability as protected classes?
- The Fair Housing Amendments Act of 1988 (Correct answer)
- The Civil Rights Act of 1972
- The Housing and Urban Development Act of 1974
- The Equal Credit Opportunity Act of 1975
Correct answer: The Fair Housing Amendments Act of 1988
The Fair Housing Amendments Act of 1988 expanded the protected classes to include familial status and disability.
Question 3: Steering is a Fair Housing violation that occurs when a licensee:
- Directs buyers toward or away from neighborhoods based on race or other protected characteristics (Correct answer)
- Refuses to show listings to qualified buyers
- Advertises properties using discriminatory language
- Charges different commission rates based on buyer demographics
Correct answer: Directs buyers toward or away from neighborhoods based on race or other protected characteristics
Steering involves directing prospective buyers or renters toward or away from specific areas based on protected class characteristics.
Question 4: Under the Fair Housing Act, which of the following is an example of blockbusting?
- Inducing homeowners to sell by suggesting that minorities are moving into the neighborhood (Correct answer)
- Refusing to make mortgage loans in certain geographic areas
- Advertising a property as unavailable when it is actually available
- Setting different rental terms for tenants of different nationalities
Correct answer: Inducing homeowners to sell by suggesting that minorities are moving into the neighborhood
Blockbusting is the illegal practice of inducing panic selling by implying that a neighborhood's character will change due to minority entry.
Question 5: The practice of refusing to make mortgage loans or issue insurance policies in certain geographic areas, regardless of individual qualifications, is called:
- Redlining (Correct answer)
- Steering
- Blockbusting
- Commingling
Correct answer: Redlining
Redlining is the discriminatory practice of denying financial services to residents of specific areas based on the racial or ethnic composition of those areas.
Question 6: Which federal agency is primarily responsible for enforcing the Fair Housing Act?
- The U.S. Department of Housing and Urban Development (HUD) (Correct answer)
- The Federal Trade Commission (FTC)
- The Consumer Financial Protection Bureau (CFPB)
- The Equal Employment Opportunity Commission (EEOC)
Correct answer: The U.S. Department of Housing and Urban Development (HUD)
HUD is the primary federal agency responsible for enforcing the Fair Housing Act and investigating complaints of housing discrimination.
Arkansas Real Estate License Fair Housing and Federal Laws 1
The federal Fair Housing Act of 1968 prohibits discrimination based on which of the following protected classes?