Redlining
. refusal to lend in certain areas, usually inner-city; the illegal practice of a lending institution’s denying loans or restricting their number for certain areas of a community.
What is the term for a lender refusing to lend in a specific area?
redlining
. The practice of a lender to refuse to lend in a specific area, often based on the minority makeup of the area.
What is redlining and blockbusting?
There are various controversial acts related to real estate practices that often infringe upon rights and quickly become illegal. Explore the practices of redlining (discrimination), blockbusting (
pressuring to sell cheap
), and steering (pushing for race-specific neighborhoods).
What is an example of redlining?
Indeed, in the 1930s the federal government began redlining real estate, marking “risky” neighborhoods for federal mortgage loans on the basis of race. … Examples of redlining can be found in a variety of financial services, including not only mortgages but also
student loans, credit cards, and insurance
.
What is the best definition of redlining?
Redlining is
the illegal practice of refusing to provide financial services to consumers based on the area where they live
.
What is the Holden act?
The Act
governs the provision of loans to purchase, construct, rehabilitate or refinance one-to-four-unit residences occupied by the owner and to make home improvements to
any one- to four-unit family residence. … Lenders had to identify and itemize by census tract loan transactions within only those 37 counties.
What is blockbusting in sociology?
Blockbusting refers to
the practice of introducing African American homeowners into previously all white neighborhoods in order to spark rapid white flight and housing price decline
. Real estate speculators have historically used this technique to profit from prejudice-driven market instability.
Where did blockbusting happen?
The term blockbusting might have originated in
Chicago, Illinois
, where real estate companies and building developers used agents provocateurs. These were non-white people hired to deceive the white residents of a neighborhood into believing that black people were moving into their neighborhood.
What does blockbusting mean in geography?
Learn about our Editorial Process. Updated on October 28, 2019. Blockbusting is
the practice of real estate brokers convincing homeowners to sell their houses for low prices for fear that a neighborhood’s socioeconomic demographics are changing and will decrease home values
.
What is another name for blockbusting in real estate?
First and foremost, blockbusting, also sometimes referred to as “
panic selling
,” is a discriminatory and illegal real estate practice. It involves convincing property owners to sell their homes based on the assumption that a new neighbor will change the socio-economic makeup of the neighborhood.
What is redlining in fair lending?
The term “redlining” is defined according to the Interagency Fair Lending Examination Procedures as when “[a]
n institution provides unequal access to credit, or unequal terms of credit
, because of the race, color, national origin, or other prohibited characteristic(s) of the residents of the area in which the credit …
What is steering in fair lending?
Steering is simply
a loan applicant being guided into a particular loan product that may have less favorable terms or conditions than an alternative product
.
What is de facto segregation?
During racial integration efforts in schools during the 1960’s, “de facto segregation” was a term used to
describe a situation in which legislation did not overtly segregate students by race
, but nevertheless school segregation continued.
What is the difference between steering and redlining?
Steering is the
illegal practice
of channeling home seekers to particular areas, either to maintain the homogeneity of an area or to change the character of an area, which limits their choices of where they can live. It is a form of redlining.
What is redlining AP Gov?
Redlining. a practice in which banks refuse to make loans to people living in certain geographic locations. “
separate but equal” rule
.
doctrine that public accommodations could be segregated by race but still be equal
.
What does the Unruh Act apply to?
The Unruh Act applies to all businesses in California including:
hotels and motels, restaurants, theaters, hospitals, barber and beauty shops, housing accommodations, and retail establishments
. The law was enacted in 1959 and was named for its author, Jesse M. Unruh.
What is the California Unruh Civil Rights Act?
The unruh civil rights act
provides protection from discrimination by all business establishments in California
, including housing and public accommodations.
What is the use of a property’s location to deny financing?
Real Estate Transfer Disclosure Statement
The Real Estate Transfer Disclosure Statement (TDS) describes the condition of a property and, in the case of a sale, must be given to a prospective buyer as soon as practicable and before transfer of title.
What is Easton vs Strassburger?
Strassburger.
2 7
In Easton, the court held that a real estate broker has a duty to diligently inspect a listed property and to disclose to prospective purchasers of that property all facts materially affecting the property that such an inspection would reveal.
When did blockbusting take place?
Blockbusting was a real estate practice that took place in the US during
the late 20th century
, particularly after the end of World War II. This practice was triggered first by the 1917 Supreme Court decision in Buchanan vs. Warley, which made racially segregating residential laws illegal.
What is blockbusting example?
Examples of blockbusting include:
When real estate agents alert the members of a neighborhood that it is “changing”
and that they should sell their property. Making house-by-house telephone calls urging member of a neighborhood that they should sell before their property values decrease.
What is blockbusting Chicago?
“Blockbusting” refers to
the efforts of real-estate agents and real-estate speculators to trigger the turnover of white-owned property and homes to African Americans
.
Does blockbusting still exist?
“Blockbusting” has been illegal since the Fair Housing Act of 1968
. Yet racial segregation remains a “defining feature of American cities.” “Blockbusting” emerged as a result. … The practice of blockbusting has been illegal since the Fair Housing Act of 1968.
What is a panic peddling?
Panic peddling refers to
a profitable ploy by unscrupulous real estate agents who suggest to homeowners that they move before their property values decline
because the neighborhood`s racial composition is changing.
Which of the following is an example of blockbusting quizlet?
What is an example of blockbusting?
An agent persuades a family to put their house on the market because ethic minority families are beginning to move into the neighborhood
.
What is Mrs Murphy exemption?
“Mrs. Murphy’s exemption”:
If the dwelling has four or less units and the owner lives in one of the units
, it is exempt from the Fair Housing Act in most states – it does not apply in Ohio because the State of Ohio Fair Housing Act overrides federal law in this case and disallows the exemption.
Which of the following are considered non institutional lenders?
As a result, non-institutional lenders can be more creative to provide loan structures well suited for real estate investors. Examples of non-institutional lenders are
real estate investment trusts (REITS), insurance companies, pension funds, hard money lenders
, or even individual lenders.
What is de facto accessible?
Its meaning is ”
WHEN A KING IS THERE AND A BRITISH RESJDE
T IS THERE OF HE IS THE DE FACTO RULER IT MEANS HE IS THE ACTUAL RULER. HERE DE FACTO ACCESSIBLE MEANS ACTUALLY ACCESSIBLE. Smenevacuundacy and 10 more users found this answer helpful.
What is the difference between dejure and defacto segregation?
Something that is de jure is
in place because of laws
. When discussing a legal situation, de jure designates what the law says, while de facto designates what actually happens in practice. “De facto segregation,” wrote novelist James Baldwin, “means that Negroes are segregated but nobody did it.”
Which broker action is an example of blockbusting?
An example of blockbusting would be a
real estate agent hiring a Black woman to walk her dog in an all-White neighborhood
. They then place their real estate card in all the mailboxes on the block, offering to buy the house right away at a discounted price.
Who protects respa?
RESPA covers
loans secured with a mortgage placed on one-to-four family residential properties
. Originally enforced by the U.S. Department of Housing & Urban Development (HUD), RESPA enforcement responsibilities were assumed by the Consumer Financial Protection Bureau (CFPB) when it was created in 2011.
What is meant by de jure and de facto segregation?
In U.S. law, particularly after Brown v. Board of Education (1954), the difference between de facto segregation (segregation that existed because of the voluntary associations and neighborhoods) and de jure segregation (
segregation that existed because of local laws that mandated the segregation
) became important …
Where is Rema described?
REMA is defined as
the Reasonable Expected Market Area
, which is the geographical area the regulatory agency believes a bank can serve based on the bank’s distribution of applications and loan originations and its marketing and outreach efforts.
What are the 3 types of lending discrimination?
There are three types of lending discrimination:
overt, disparate treatment and disparate impact
.
Is HMDA a fair lending law?
The Home Mortgage Disclosure Act, or HMDA, is
a law that requires most mortgage lenders to provide detailed information about each loan they close
. Regulators and policymakers use the information to ensure that lenders follow fair lending laws and offer affordable housing finance options to aspiring homeowners.
What is Realtor steering?
Steering is
when a real estate agent influences a homebuyer to purchase in certain communities based on their race
, therefore limiting the buyer’s choices. … Agents direct clients to neighborhoods based on their race.
What is equity skimming?
Equity Skimming is
a Mortgage Fraud committed by skimming the equity from a property as part of subprime lending refinancing
. This fraud occurs when a homeowner who is in default on their real estate taxes or mortgage is offered a loan to prevent immediate foreclosure.
What is a conforming fixed loan mean?
A conforming loan is a mortgage that meets the requirements to be purchased by Fannie Mae or Freddie Mac. The main criterion is that the loan amount falls under the annual determined dollar cap for your county. Basically, a conforming loan is
a home loan whose amount doesn’t exceed a certain dollar amount
.
What is the difference between blockbusting and panic peddling?
Panic peddling is
an illegal practice in real estate
. Real estate agents make people believe that other individuals, who are members of a minority group, are likely going to buy real property near them. Blockbusting is another illegal real estate practice.
