First National Bank owns several pieces of real estate obtained through foreclosures.  Two of these are homes that the bank would like to market and sell within the community.  The bank will also provide financing for these homes.  In addition, the bank owns an apartment complex that it is managing until it is sold.  In relation to these properties, which of the following issues is NOT a Fair Housing Act issue?

A. Discrimination base on familial status in renting apartments

B. Accessibility of the apartment complex to handicapped persons

C. Whether potential buyers of the houses are being discouraged from looking at the houses because of race or ethnic background

D. Affordability of the apartments relative to the community immediately around the complex

D. Affordability of the apartments relative to the community immediately around the complex

Fair Housing Act: 42 USC 3601

The Fair Housing Act covers all phases of real estate transactions.  The bank is subject to the act as an owner and as a creditor in the example.  The bank must be careful to ensure that potential apartment tenants are not discriminated against on the basis that they have or are anticipated to have children under the age of 18.  The bank must be careful to include the needs of handicapped persons in modifying or designing physical structures in the apartment complex.  When marketing the houses the bank should make sure that it or its real estate agents do not engage in illegal practices such as steering (that is, directing person to or from a neighborhood based on race, ethnic group, or religion). The monthly rent on the apartments themselves is not a Fair Housing issue provided the rent on any one type of unit is charged equally to all persons regardless of race, color, national origin, sex, religion, familial status, or handicap of the person.

In state bank advertisements, on what must Fair Housing logos be placed?

A. Bank communications

B. Bank advertising

C. Advertising for home improvement loans

D. Bank lobby signs

C. Advertising for home improvement loans

Fair Housing Act: 12 CFR 338.3(a)(1)

The Fair Housing logo must be placed on all advertisements for home purchase and home improvement loans.

First State Bank, a state nonmember bank, is auditing its recordkeeping procedures for compliance with the FDIC Fair Housing regulations.  Which loan should be reviewed?

A. A loan to purchase a mobile home to be used as a vacation home

B. A home equity line of credit

C. A loan to purchase vacant land for the construction of a residence

D. A home purchase loan

D. A home purchase loan

Fair Housing Act: 12 CFR 338.7(a)

The FDIC Fair Housing regulation covers only the home purchase loan.  Refinancing of purchase loans are also covered. 

Which of the following loans is NOT subject to Fair Housing monitoring requirements for housing-related loans made by a national bank located outside a metropolitan statistical area (MSA)?

A. A loan to purchase a mobile home

B. A loan to provide permanent financing for the construction of a residence

C. A loan to purchase a residence

D. The refinancing of a home purchase loan

A. A loan to purchase a mobile home

Fair Housing Act: 12 CFR 27.3(a)(2)

Mobile home loans are not covered by the regulation unless real estate on which the home will be placed is included in the financing.

First National Bank, with assets of $60 million, is located in a large urban area (which has been designated as an MSA).  Which of the following is true of the bank’s fair housing recordkeeping requirements?

A. It must keep an Inquiry/Application Log of all home loans and home improvement loans.

B. It does not have to keep any records unless it had at least 50 applications for home purchase loans during the previous calendar year.

C. It must keep monthly info on all home loan apps (including purchase, permanent financing, and refinancing) regarding the number of apps received, the number denied, the number withdrawn, and the number of loans closed.

D. It must keep its HMDA LAR updated quarterly.

D. It must keep its HMDA LAR updated quarterly.

Fair Housing Act: 12 CFR 27.3(a)

Which of the following national banks must keep an Inquiry/Application Log?

A. A bank that had 50 or more home loan apps in the previous year

B. A bank that has $50 million or more in assets

C. A bank that is located in an MSA

D. A bank that has been requested by the OCC to keep such a log because of complaints that its lending practices may be discriminatory

D. A bank that has been requested by the OCC to keep such a log because of complaints that its lending practices may be discriminatory

Fair Housing Act: 12 CFR 27.4(a)

First National Bank is located outside an MSA.  It received 120 home loan apps last year.  Which statement best describes the bank’s Fair Housing recordkeeping requirements?

A. It may either keep the Home Loan Data System records, or it may keep the HMDA LAR info.

B. It must complete up to 2,000 Home Loan Data Submission Forms per bank or 250 per decision center and submit them to the OCC within 30 days.

C. It must keep a HMDA LAR.

D. It must keep the Home Loan Data System records.

A. It may either keep the Home Loan Data System records, or it may keep the HMDA LAR info.

Fair Housing Act: 12 CFR 27.3(a)(2)

If the bank is not covered by HMDA, it may choose to keep a HMDA LAR, or it may keep the Home Loan Data System records, at its option.

Which of the following is NOT a prohibited basis of discrimination under the federal Fair Housing Act? 

A. Race

B. Disability

C. Religion

D. Sexual orientation

D. Sexual orientation

Fair Housing Act: 42 USC Chapter 3605

Sexual orientation is not included in the list of prohibited bases.