Mindy is a mortgage loan originator licensed in Michigan, Indiana, and Illinois. Under the SAFE Act, she must submit her ______ for an FBI background check.
Blood sample
Credit report
Fingerprints
Tax filings
Which of the following pieces of legislation focuses on unfair high-rate loan practices?
Fair Lending Act
Homebuyer Protection Act
Home Ownership and Equity Protection Act
Lender Protection Act
Company A and Company B operate in an industry with little competition. As a result, they agree to maintain the prices of their goods at the same rate with the intent to consistently net the highest amount possible from consumers. This practice catches the attention of consumers, who accuse the companies of violating the Sherman Act. To determine guilt, what will the court need?
Evidence detailing the entire situation, including the people involved and the length of time that the practice occurred
Nothing–price fixing is a per se violation, which means that guilt is established on the face of the circumstances
Proof that both companies involved profited from fixing prices
Proof that the companies intended to act illegally by fixing prices
Which of the following actions should broker Kamil suggest his staff members take to avoid price fixing allegations?
Consult with competitors to determine competitive pricing.
Engage in discussions about fees with licensees from other companies.
Establish fees independently or as a company.
Promote “industry rates” in conversations with consumers.
Which of these is an example of illegal market allocation?
A brokerage firm decides to focus on listings in the $350,000 to $475,000 price range.
Three licensees in the same firm agree to focus on the specific neighborhoods in which they live so they’re more knowledgeable about listings in those areas.
Two brokerage firms have an agreement to focus exclusively on suburban, rather than rural, homes.
Two real estate firms each discuss with their licensees where the most lucrative deals can be found.
A lender puts a map in their office and says, “We will not offer mortgages to anyone in this high-risk geographic area.” What’s this practice known as?
Blockbusting
Redlining
Steering
Structuring
Which type of antitrust violation occurs when real estate professionals agree to divide their market so they don’t compete with one another?
Group boycotting
Market allocation
Price fixing
Tie-in arrangements
Your job is to follow your client’s preferences in location and type of housing. Under fair housing laws, which of the following is illegal?
Charge a fee for services
Deny home seekers their full choice
Refuse to show homes that do not meet their stated specifications
Show buyers or tenants homes out of their price range
An offer comes in with a buyer love letter attached. The seller’s broker should ______.
Fulfill the uniform duty to present all offers
Inform the seller of generic fair housing risks that can arise in these situations
Not worry about it unless the offer is rejected or countered
Present the offer but make no mention of the letter
Alan believes he was a victim of loan steering, because his lender encouraged him to get a ________, even though he qualified for a mainstream loan.
FHA loan
Subprime loan
USDA loan
VA loan
TILA’s right of rescission helps protect borrowers from ________.
Balloon payments
High interest rates
High-pressure sales tactics
Subprime loans
In addition to suing, what action may borrowers who suspect their lender violated HOEPA requirements take?
A lawsuit is their only option.
Ask the court to rescind the lender’s business license.
Attach a lien to the lender’s assets.
Cancel the loan for up to three years after closing.
To comply with the SAFE Act, Mindy, a state-licensed mortgage loan originator, registers with the Nationwide Mortgage Licensing System. She must, among other requirements, achieve a passing score on the ______.
Appraisal certification exam
National Lender Exam
SAFE Mortgage Loan Originator Test
State real estate license exam
Now that NAR has enacted the Clear Cooperation policy, may licensees omit listings from the MLS entirely if their seller clients direct them to avoid public marketing efforts?
No
Not if their broker’s policy states otherwise
Yes
Yes, but only in seller markets
Lenders suspected of committing predatory acts ________.
Are always caught and prosecuted
Can be prosecuted on the state and federal level
Can only be tried in civil court
Face small fines