Regulatory Compliance Flashcards

Under the Fair Housing Act, which of the following is NOT a protected class at the federal level?

Answer: Source of income

Source of income is not a federally protected class under the Fair Housing Act, though some states and localities have added it as a protected class.

A licensee who discovers a latent defect in a property listed for sale is required to:

Answer: Disclose it to prospective buyers

Licensees have a duty to disclose known material defects to prospective buyers, even if the seller prefers it not be disclosed.

The Americans with Disabilities Act (ADA) requires that public accommodations be accessible. Which of the following is a public accommodation?

Answer: Real estate brokerage office

A real estate brokerage office qualifies as a public accommodation under the ADA and must be accessible to people with disabilities.

Which agency enforces the Real Estate Settlement Procedures Act (RESPA)?

Answer: Consumer Financial Protection Bureau (CFPB)

The CFPB took over enforcement of RESPA from HUD following the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

A broker who co-mingles client funds with personal or operating funds is guilty of:

Answer: Commingling

Commingling is the illegal practice of mixing client funds with the broker's personal or business funds, and is a violation distinct from conversion.

Under the Equal Credit Opportunity Act (ECOA), a lender must notify an applicant of a credit decision within how many days?

Answer: 30 days

ECOA requires creditors to notify applicants of a credit decision, including any adverse action, within 30 days of receiving a completed application.

A seller's agent who also represents the buyer in the same transaction without full disclosure and consent from both parties is engaging in:

Answer: Undisclosed dual agency

Undisclosed dual agency is illegal because it violates the agent's fiduciary duties to both clients who have not consented to the arrangement.