Regulatory Compliance Flashcards

A mortgage lender who charges higher interest rates to borrowers in a specific ZIP code regardless of creditworthiness may be engaged in:

Answer: Redlining

Redlining is the illegal practice of denying or increasing the cost of financial services to residents of certain geographic areas, often correlated with race or national origin.

Which document provided to borrowers at closing replaced the HUD-1 Settlement Statement for most residential mortgages after October 2015?

Answer: Closing Disclosure

Under the TRID rule, the Closing Disclosure replaced the HUD-1 Settlement Statement and must be provided to borrowers at least three business days before closing.

A broker is operating as a designated agency. What does this mean?

Answer: Different agents in the same brokerage are designated to each party as exclusive agents

In designated agency, the broker designates separate agents within the firm to exclusively represent the buyer and seller, avoiding true dual agency.

Under the Americans with Disabilities Act, a real estate office that cannot be structurally modified to be accessible must:

Answer: Make services available through alternative methods such as home visits

When structural modifications are not readily achievable, the ADA requires businesses to find alternative methods to make their services accessible to people with disabilities.

A real estate licensee must complete continuing education (CE) primarily to:

Answer: Maintain competency and meet license renewal requirements

Continuing education ensures licensees stay current with laws, regulations, and best practices, and is required by state licensing authorities as a condition of license renewal.

Which of the following is a permissible reason for a landlord to refuse to rent to an applicant under fair housing law?

Answer: The applicant has an eviction judgment from the past 12 months

A documented eviction judgment reflecting a past violation of a lease is a legitimate, non-discriminatory reason to deny a rental application.

The Sherman Antitrust Act prohibits which of the following real estate practices?

Answer: A real estate association recommending a standard commission rate to members

A real estate association recommending or enforcing a standard commission constitutes price-fixing among competitors, which is a per se violation of the Sherman Antitrust Act.