real estate finance - full book (500 pgs)

Adverse action the denial revocation or change in the

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Unformatted text preview: state agent who represents the borrower. This will allow the borrower to have either sufficient cash or a cashier's check to pay the required amount. If the agent reviews the Uniform Settlement Statement prior to closing, he or she can see if the buyer is paying the proper items and amounts outlined in the earnest money contract. Thus, there will be no surprises at the time of closing. 9. PROHIBITiONS In an effort to hold down closing costs, Congress included some prohibitions and limitations in the law. No giving or accepting kickbacks or unearned fees (referral fees) to unlicensed persons for settlement related activities. Limitations are placed on the initial amounts which a lender may collect for establishing new insurance and tax reserves EXCLUSIONS RESPA does not apply to construction and home improvement loans, vacant lots, parcels of 25 acres or more, assumptions, property purchased for resale, land sales contracts, or any transaction in which title is not transferred. 11-22 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 11: FINANCING DISCLOSURE REQUIREMENTS HOUSING FINANCIAL DISCRIMINATION ACT The Housing Financial Discrimination Act of 1977 (Holden Act), was enacted in California in 1977 to deter a discriminatory practice known as “redlining,” the blanket refusal by some lenders to make loans in neighborhoods of fading property values. The Holden Act applies to owner–occupied residential properties of one to four units. The act also includes non–owner–occupied loans on up to four units if 50% or more of the loan proceeds are to be used to improve the property. Application • Borrower – The Holden Act prohibits consideration of an applicant's race, color, religion, sex, marital status, national origin, or ancestry in providing financial assistance. Neighborhood – Financial assistance cannot be denied because of the ethnic composition or expected trends in the neighborhood. • Allowable Considerations – While the Act prohibits discrimination in lending and apprais...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.

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