REA Legal, Regulatory & Ethical Standards 5

Question 1

The Home Mortgage Disclosure Act (HMDA) requires lenders to collect and report data on mortgage applications primarily to:

Accepted Answer

Help identify potential discriminatory lending patterns and inform housing policy

Answer

HMDA data allows regulators, community groups, and the public to identify whether lenders are serving their communities and to detect potential discriminatory patterns.

Question 2

In real estate ethics, 'conflict of interest' arises when an analyst:

Accepted Answer

Has a personal or financial interest that could impair their objectivity in a professional engagement

Answer

A conflict of interest exists when personal or financial interests could compromise — or appear to compromise — the analyst's professional judgment or objectivity.

Question 3

Under Regulation Z, what is the right of rescission?

Accepted Answer

A borrower's right to cancel certain non-purchase mortgage transactions within three business days

Answer

Regulation Z gives borrowers the right to cancel certain non-purchase mortgage transactions (such as refinances and home equity loans) within three business days of closing.

Question 4

Which type of zoning variance allows a property owner to deviate from specific zoning requirements because strict compliance would cause undue hardship?

Accepted Answer

Area (dimensional) variance

Answer

An area or dimensional variance permits a property owner to deviate from specific dimensional standards (such as setbacks or height) when strict compliance would cause undue hardship.

Question 5

The Superfund law (CERCLA) imposes liability for environmental cleanup costs on which parties?

Accepted Answer

Current owners, past owners, operators, and parties who transported hazardous waste to the site

Answer

CERCLA imposes strict, joint and several liability on current and past owners/operators of contaminated sites and generators/transporters of hazardous substances.

(REA) Real Estate Analyst Certification Practice Test

(REA) Real Estate Analyst Certification Practice Test

REA Legal, Regulatory & Ethical Standards 5