Sec 4 Unit 2 Exam

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Below are the questions for the exam with the choices of answers:

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Question #1

The ______ requires specific disclosures and was enacted in 1968 as part of the Consumer Credit Protection Act.

A Federal Equal Credit Opportunity Act

B Real Estate Settlement Procedures Act

C American Recovery and Reinvestment Act

D Truth in Lending Act

Question #2

The ______ was a response to the practice of redlining and was enacted in 1977.

A Federal Equal Credit Opportunity Act

B Home Mortgage Disclosure Act

C Real Estate Settlement Procedures Act

D Community Reinvestment Act

Question #3

The Housing and Economic Recovery Act and the American Recovery and Reinvestment Act were enacted in response to ______.

A The civil rights era

B The subprime mortgage crisis and economic meltdown of 2007-2008

C The recession and banking scandals of the 1980s

D The Great Depression of the 1930s

Question #4

Tyler is a developer who renovates a long-abandoned warehouse in a low-income neighborhood into a community center, complete with space for after-school programs, a daycare, and a gym. Tyler is able to complete the renovation with a loan funded by a local bank. Which act requires financial institutions to make credit available for this type of development?

A Home Mortgage Discrimination Act

B Community Reinvestment Act

C Equal Credit Opportunity Act

D Consumer Credit Protection Act

Question #5

In a residential real estate sale involving a federally related loan, what entity is required to provide Real Estate Settlement Procedures Act disclosures to the consumer?

A The consumer’s mortgage broker

B The settlement officer for the transaction

C The consumer’s lender

D The consumer’s real estate broker

Question #6

The Real Estate Settlement Procedures Act protects consumers by _______.

A Requiring all settlement service providers to restrict their fees to only those types and amounts that Regulation X allows

B Requiring that settlement companies provide an attorney to represent the borrower’s interests, at no cost to the borrower, as part of a residential real estate transaction involving credit

C Eliminating illegal kickbacks and referral fees among settlement service providers and requiring lender disclosures as part of a residential real estate transaction involving credit

D Prohibiting settlement service providers-including real estate professionals-from discriminating during a residential real estate transaction

Question #7

Gregory and Dianne are American citizens of Cuban origin, and when their home loan is denied, they suspect discrimination. Which of the following acts prohibits lender discrimination on the basis of the protected class of national origin?

A Community Reinvestment Act

B Home Mortgage Discrimination Act

C Consumer Credit Protection Act

D Equal Credit Opportunity Act

Question #8

Natalie is a single mother of twins and receives government assistance to help make ends meet. She’s been living with her mother for the last few years but really wants to buy her own home to gain some independence. She’s got a little in savings and has good credit, but when a lender turns her away because she receives public assistance she worries that she’ll never be able to get a loan. What act prevents automatic discriminatory practices by lenders and protects individuals like Natalie?

A Home Mortgage Disclosure Act

B Equal Credit Opportunity Act

C Consumer Credit Protection Act