Celene
Real Estate Finance
February 27, 2024
Huber, W
Chapters 5/6
Overview
In Chapter 5 the overview that was learned about was Fair Lending. Fair Lending is sharing the same opportunity of lending. It is lending in the absence of discrimination based on race, sex, color, religion, national ancestry, marital status or handicap (Huber, 2017, p. 108). To make sure no discrimination is being made there were laws implemented as well as federal laws and codes of conduct. Although some of these laws do not pertain to lending it is still implemented in any legislation to prohibit housing discrimination and in the lending process.
Key Concept Chapter 5
Chapter 5 I learned about the Federal Fair Housing Laws. One was the Civil Rights Act of 1866 which was presented by a reconstruction congress right after the ending of the Civil War. It states that:
.. all citizens of the United States shall have the same rights in every state and territory as is enjoyed by white citizens thereof to inherit, purchase, lease sell, hold and convey real and personal property (Huber, 2017, p. 108). This was the first act to provide the same property rights for everyone and the same housing opportunity. The Civil Rights Act applies to race only and applies to all types of property transactions, real and personal property. This act can also be used in a civil lawsuit by someone who has been discriminated against.
Key Concept Chapter 5
The second concept I learned in Chapter 5 is about enforcing VIII of the Civil Rights Act of 1968. This law is only implemented in housing. When filing a discrimination report it is reported to the Department of Housing and Urban Development (HUD). HUD enforces the discrimination against origin, color, religion, race, sex (1974), familial status (1988), and handicap (1988). Once a complaint has been made the individual can file civil action in state or federal court within 2 years of the incident or the closing of claimed discrimination action. Administrative law judgments are limited to penalties up to $16,000 for the first offense, $42,500 if there was a prior offense within five years, and $70,000 if there were two previous offenses within the prior seven years (Huber, 2017, p. 110).
Key Concept Chapter 6
The final concept I learned in Chapter 6 is the Truth in Lending Act (TILA). TILA is a structured method that demonstrates how to calculate the cost of credit by the commission of the disclosure of the annual percentage rate (APR). In which is a single number to make easier resemblance of loan rates. This act was enforced by Regulation Z of the Consumer Protection Act that was passed in 1968 aka Reg. Z. When revealing the APR, Regulation Z requires that the lender provides the consumer with a disclosure of all finance charges. Finance Charges include interest charges, discount points, appraisal fees, inspection fees, and any credit life insurance or mortgage insurance fees (Huber, 2017, p. 129).
Overview
by Celene Cruz
After reviewing and reading these two chapters I have learned that there are several types of laws and regulations to protect one’s identity, ownership, credit, property, and money. With all these laws I am sure it will be on the real estate exam as well as examples of scenarios and when they can be implemented. For example, TILA, Disclosures, injunctions, loan types, redlining, fair lending and so much more. These chapters also included when and how to implement laws and regulations for a better understanding and consequences of them.
