Florida Real Estate Chapter 12 |41 Questions| With Correct Answers.

27. Lenders are required to judge loan applicants on the basis of credit rating, income, expenses and assets, without regard to their age, race, religion, sex, marital status, or nationality. Which Act prohibits this discrimination? (a) Truth-in-Lending Act (b) RESPA (c) Fair Housing Act (d) ECOA {Ans: (d) ECOA, The Equal Credit Opportunity Act (ECOA) requires lenders to judge every loan application on the basis of the applicant's own credit rating and income. The ECOA allows the lender to question applicants on the stability and source of income, but the lender cannot refuse to consider income because of the source. Lenders are prohibited from discriminating against borrowers on the basis of race, color, religion, national origin, sex, marital status, age, or receipt of income from public assistance programs.}23. Which would offer a potential borrower the most favorable interest rate over the life of the loan? (a) 4.0% plus 8 points (b) 4.5% plus 6 points (c) 4.75% plus 4 points (d) 5% plus 2 points {Ans: (a) 4.0% plus 8 points, A simple rule of thumb can be used to approximate the change in interest as a result of the loan discount points paid: For each point charged