real estate finance - full book (500 pgs)

D creditors advertisers of credit discrimination

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Unformatted text preview: al practices, it does not preclude a lender's considering the fair market value of property which will be used to secure the loan, nor require the lender to lend if it is evident that occupancy of the property will endanger the health and safety of the resident. DISCLOSURE To insure that prospective borrowers are aware of their rights under this law, lenders must notify all loan applicants at the time of the completed loan application of the existence of the Holden Act. Form and Content – The notice must include the address where complaints may be filed and information may be obtained. The notice must be in at least 10 point type and must also be posted in a conspicuous location in the lender's place of business. Complaints – Any applicant seeking a real estate loan for a personal residence (not more than four dwelling units) who suspects discrimination under this law, may file a complaint with the Secretary of the Business, Transportation, and Housing Agency. Dynasty School (www.dynastySchool.com) 11-23 REAL ESTATE FINANCE Compliance – If the secretary or designee finds that a lender has engaged in unlawful practices, the lender may be required to make the loan, or if that is no longer a viable solution, the lender may be made to pay damages to the complainant. PURPOSE The act states that financial institutions cannot deny or discriminate in fixing the amount, interest rate, or length of the loan based upon Race, color, religion, sex, marital status, sexual orientation, national origin, handicap, ancestry, or other characteristics of the borrower Racial, ethnic, religious, national origin, or income–level composition of a neighborhood or whether that composition is expected to change. The act also prohibits discrimination by effect. That means that the institution cannot engage in a lending practice that has a discriminatory effect against a protected group, unless that practice is required to achieve a legitimate business purpose. If it is clear that a practice has a discriminat...
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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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