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1. Name one practice that is prohibited under Section 8 of RESPA.

2. List at least three categories under ECOA on which creditors may not base credit decisions.

3. Define rescission as it relates to a mortgage loan transaction.

4. List at least two practices that are not prohibited with regard to appraisers.

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Answer:

The answer is below



Explanation:

1. Pactice that is prohibited under Section 8 of RESPA includes the following:

i.  Payment or Receive of "things of value" for business referrals

ii.  Fee splitting when the job or work is yet to be done, to earn a part of the fee

iii. Excessive charges such as mark-ups, double billing, etc.

iv. Void agreement or understanding with regard to referrals and settlement services

2.  Categories under ECOA on which creditors may not base credit decisions are:

Race, Color, Religion, Nationality, Sex, Marital status, Age, Receipt of public assistance and Exercise of rights under the Consumer Credit Protection Act

3.  Rescission is a term that describes a form of legal remedy that voids an agreement between two parties and take back both parties to the initial state before the transaction.

Recission right is however applicable to specific loan transactions, for example refinances and home equity lines of credit.

4.  Practices that are not prohibited with regard to appraisers.

i.  Payment or Receive of "things of value" for business referrals

ii.  Fee splitting when the job or work is yet to be done, to earn a part of the fee

iii. Excessive charges such as mark-ups, double billing, etc.

iv. Void agreement or understanding with regard to referrals and settlement services.

chilljain33

The answer to the queries given above are stated as follows:-

1.  Cash or other 'things of value' as defined under section 8 of the Act are stated to be not to be used by any such firm for the purpose of business referrals.

2. A banking or financial institutions providing credit facilities may not base their credit decisions on factors like race, sex, religion, nationality, beliefs, etc which are irrelevant to the credibility of a borrower in the market.

3. Rescission relates to the revoking, calling back, reversing the judgement passed by the law and make necessary amendments to the law as may be deemed fit.

4. An appraiser may not try to influence the property through the way of wrongful behavior like fraud,coercion or impersonation. And any other such act which relates to criminal conduct must be avoided by the appraiser.

  • Things of value refer to such assets or class of assets that are easily liquidated and their values are easily realizable due their liquidity and acceptability in the market.

  • There shall be no discrimination for providing credit facilities on the bases of unrelated phenomenon such as sex, religion, race, castes of a person and shall be purely based on credibility of such person.

  • Rescission relates to the mortgage loan transaction in a way that it is available to the parties of such transaction in cases where there is refinancing or a home mortgage against finance facility.

  • Any such agreements which are void ab initio, void during the contract or voidable at the end of any party are not allowed for appraisers so it can be concluded that only legally bound contracts are allowed.

  • There shall be no acts of impersonation, frauds leading to coercion are also prohibited in case of appraisers of a property so only genuine appraisal of a property is allowed.

Hence, the correct statements are mentioned above for all the queries as asked under the headings of 1, 2, 3 and 4 and hold true.

To know more about lawful acts, click the link below.

https://brainly.com/question/25403846

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