10. You have discovered that for six months the Association participated in the Boards Pilot Data Collection Project. You find racially coded applications and compare the applications of blacks with those of whites, looking at loans and terms requested as opposed to those granted. You find no evidence of overt discrimination. However, a greater number of blacks are rejected than whites. This correlates closely to the fact that many more blacks than whites applied for loans on homes in the city, as opposed to the suburbs.

11. You decide to interview branch managers at each branch. At the three semi-suburban branches, each manager actively solicits home loans and keeps up good relationships with brokers. At the main branch in the City, the manager concentrates on multi-family loans and luxury condominiums. There is some liason with suburban brokers but the manager "doesn't know many city brokers".

12. Everyone at the savings and loan whom you have spoken with maintains that they "don't get many application for loans in the city". In fact, you find virtually none.

What further investigation do you think is necessary?

Are any remedial steps necessary here?

Is the Association "serving its community's needs"?

QUIZ

This quiz concerns the Home Mortgage Disclosure Act (HMDA), the Equal Credit Opportunity Act (ECOA) and the Civil Rights Act of 1968 - Fair Housing (CRA). Please circle the appropriate letter or letters in answer to each question.

1. Any depository institution which has total assets as of its last full fiscal year of $ is exempt from the provisions of the HMDA.

(a) 10,000,000 or less (b) 10,000,000 or more

(c) 1,000,000 or less
(a) 1,000,000 or more

(e)
(f)

100,000,000 or less 100,000,000 or more

Which of the following statements concerning the ECOA is/are correct?

2.

(a)

(b)

3.

4.

5.

(c)

(d)

(e)

A creditor shall not discount the income of an applicant or an applicant's
spouse on the basis of sex or marital status.

A creditor may, in cases where interrupted income resultant from childbearing
is likely to impair ability to repay, request information about birth control
practices and childbearing intention or capability.

A creditor may request and consider any information concerning an applicant's
spouse (or former spouse who provides some form of monetary support) which may
be considered about the applicant if said applicant is relying on alimony,
child support or maintenance payments from a spouse or former spouse as a basis
for repayment of the credit requested.

A creditor shall not discount income solely because it is derived from part-time
employment, but may consider the probable continuity of such income in evaluating
the creditworthiness of an applicant.

A creditor must provide each applicant who is denied credit or whose account is terminated the reasons for such action, if the applicant so requests.

Which of the following statements concerning the CRA is/are incorrect?

(a) "Dwelling" means any building, structure, or portion thereof which is occupied as, or designed or intended for occupancy as, a residence by one of more families, and any land which is offered for sale or lease for the construction or location thereon of any such building, structure, or portion thereof. "Family" does not include a single individual.

(b)

(c) "Person" includes corporations, partnerships, and trusts.

(d)

(e)

A person shall be deemed to be in the business of selling or renting dwellings
if he has, within the preceeding 12 months, participated as principal in at least
one transaction involving the sale or rental of any dwelling or interest therein.
A person shall be deemed to be in the business of selling or renting dwellings
if he is the owner of any dwelling designed or intended for occupancy by, or
occupied by, five or more families.

For the purposes of the HMDA, "mortgage loan" means a loan which is secured by

(a)

residential real property

(b) corporate owned commercial property

(c) privately owned commercial property
(d) a home improvement loan

Without regard to the amount in controversy, any action under the ECOA may be brought in any United States district court or in any other court of competent jurisdiction, within from the date of the occurrence of the violation.

6.

Which of the following statements concerning the CRA is/are correct?

(a)

7.

8.

9.

(b)

It is unlawful to refuse to sell or rent after the making of a bona fide offer,
or to refuse to negotiate for the sale or rental of, or otherwise make unavailable
or deny, a dwelling to a person because of race, color, religion or national origin.
It is also unlawful to make, print, or publish, or cause to be made, printed or
published any notice, statement, or advertisement, with respect to the sale or
rental of a dwelling that indicates any preference, limitation, or discrimination
based on race, color, religion or national origin, or an intention to make any
such preference, limitation, or discrimination.

(c) Nothing in this title shall prohibit a private club not in fact open to the
public, which as an incident to its primary purpose or purposes provides lodgings
which it owns or operates for other than a commercial purpose, from limiting the
rental or occupancy of such lodgings.

Which of the following is/are correct concerning the HMDA?

(a) Mortgage loan data relating to residential real property located within the relevant SMSA, ie., the SMSA where a home or branch office is located, shall be segregated from mortgage loan data relating to residential real property located outside the relevant SMSA.

(b)

(c)

Any depository institution all of whose offices (home and branch) are located
where there is no general public access shall make available mortgage loan disclosur
statements required by this Act, be it by mail or other means.

A depository institution shall make appropriate efforts three times a year (every
four months) to notify its depositors of the availability of its mortgage loan
data.

(d) Upon request, any office of a depository institution shall promptly provide information regarding the location of any office or designated place of that depository institution at which mortgage loan disclosure statements are available.

Which of the following statements concerning the ECOA is/are correct?

(a) Any creditor who fails to comply with any requirement imposed under this title shall be liable to the aggrieved individual in an amount equal to the sum of any actual damages sustained by such applicant acting only in an individual capacity plus an additional penalty of not less than $5,000 or greater than $10,000, as determined by the court.

(b) Any creditor who fails to comply with any requirement imposed under this title shall be liable to the aggrieved applicant for punitive damages in an amount not greater than $100,000, as determined by the court, providing that the applicant proceeds only in an individual capacity.

(c) A creditors class action liability for punitive damages to the lesser is limited to $10,000 or 10% of the creditor's net worth at the time the action is brought. (d) None of the above statements are correct.

Any person who claims to have been injured by a discriminatory housing practice or who believes that he will be irrevocably injured by a discriminatory housing practice that is about to occur should file a complaint with

(a) FTC

(b) Federal Reserve Board

(c) the Secretary of HUD (d) SEC

Which of the following statements is/are incorrect concerning the HMDA?

10.

(a)

(b)

(c)

SMSA stands for State Mortgage Statistics Association.

If the Board of Governors of the Federal Reserve System determines on the basis
of information before it that under the laws of a State or municipality some or
all State-chartered depository institutions are subject to requirements substanti-
ally similar to those imposed by this Regulation, and that there is adequate
provision for enforcement of such requirements, the Board will exempt those
State-chartered depository institutions in that State or municipality that are
subject to such requirements from the requirements of the Act and the Board's
regulations.

Any mortgage loan disclosure statement required to be made available shall be
maintained and made available for a period of two years after the close of the firs
fiscal year during which that disclosure statement is required to be maintained
and made available.

11.

12.

13.

Which of the following concerning the ECOA is/are correct?

(a) It shall be unlawful for any creditor to discriminate against any applicant on the basis of sex or marital status with respect to any aspect of a credit transaction. (b) An inquiry of marital status shall not constitute discrimination for purposes of this title if such inquiry is for the purpose of ascertaining the creditor's rights and remedies applicable to the particular extension of credit, and not to discriminate in a determination of creditworthiness.

Which of the following statements is/are incorrect concerning the CRA?

(a) After a complaint is filed, a copy of said complaint shall be furnished to the person or persons who allegedly committed or are about to commit the alleged discriminatory housing practice.

(b)

(c)

(d)

A complaint shall be filed within one hundred and eighty days after the alleged discriminatory housing practice occurred.

Once a complaint is filed, it shall not be altered or amended in any way.

A respondent, after filing an answer to the complaint against him, may not
amend his answer unless by specific leave of the Secretary.

Which of the following statements is/are correct concerning the HMDA?

(a)

(b)

FHA, FHA, or VA loans, except on multi-family dwellings (1.e., dwellings for
more than four families), are subdivided as to those loans originated and those
purchased by the depository institution, during that fiscal year.
Residential mortgage loans other than FHA, FmHA, or VA loans and other than
loans on multi-family dwellings are subdivided as to those loans originated and
those purchased by the depository institution, during that fiscal year.

(c) All residential mortgage loans, except on multi-family dwellings, are subdivided as
to those loans originated and those purchased by the depository institution
during that fiscal year.

(d)

Home improvement loans, except on multi-family dwellings, are subdivided as to those loans originated and those purchased by the depository institution during

14.

Which of the following concerning the ECOA is/are correct?

Re:

A creditor may not use any information prohibited by the Act in evaluating applications. Retention of such information in the creditor's files does not violate the Act where such information was obtained...

(a)

(b)

(c)

...from any source prior to June 30, 1976.
...at any time from credit reporting agencies.

...at any time from the applicant or others, without the specific request
of the creditor.

(d) none of the above are correct

15.

Which of the following statements is/are incorrect concerning the CRA?

(a)

(b)

(c)

(d)

(e)

If any United States District court finds that a discriminatory housing practice
has occurred, or is about to occur, the court may enjoin the respondent from
engaging in such practice or order such affirmative action as may be appropriate.
Burden of proof is on the complainant.

Whenever an action filed by an individual shall come to trial, the Secretary
of Hud shall immediately terminate all efforts to obtain voluntary compliance.
If within 180 days after a complaint is filed with the Secretary, the latter
has been unable to obtain voluntary compliance, the person aggrieved may, within
180 days thereafter, commence a civil action against the respondent.

It is not necessary for the aggrieved party to enter his complaint to the
Secretary in writing.