real estate finance - full book (500 pgs)

In doing so however brokers find that conflicts occur

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Unformatted text preview: he loan for a “controlled” institution (regulated by law, i.e., banks, savings and loans) and the commission does not exceed 2% of the loan. GOOD FAITH ESTIMATE RE FORM 883 RE 883 includes the Good Faith Estimate required by RESPA as well as additional California required disclosures. APPLICABILITY OF REAL ESTATE LAW Provisions of the real estate license law do not apply to any employee of a regulated bank, trust company, savings and loan association, industrial loan company, pension trust, credit union, or insurance company. Dynasty School (www.dynastySchool.com) 10-27 REAL ESTATE FINANCE COMMUNITY REINVESTMENT ACT (CRA) To guarantee fair tending practices, Congress passed the CRA, which requires all federally supervised financial institutions (thrifts, commercial banks, credit unions, etc.) to disclose lending data in their lobbies and elsewhere. Lenders are required to report data regarding the race, gender, income, and census tract of people to whom they make loans. Its stated purpose is “to assist in identifying discriminatory practices and enforcing anti–discrimination statutes.” CRA encourages lenders to offer mortgages for low– and moderately priced housing and meet other credit needs for low– and moderate–income families. The basic idea is that if an institution accepts deposits from a certain area, it should also offer loans in that area. CRA ratings are made public for all banks and thrift institutions. The government grades each institution on how well it Knows the credit needs of its community Informs the community about its credit services Involves its directors in setting up and monitoring CRA programs Participates in government–insured, guaranteed, or subsidized loans Distributes credit applications, approvals, and rejections across geographic areas Offers a range of residential mortgages, housing rehabilitation loans, and small business loans All of these criteria are designed to protect consumers against unlawful discrimination. A positive CRA rating is a pre...
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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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