What is anti steering disclosure of loan options?

An Anti-Steering Loan Options Disclosure is required for all transactions where a Wholesale Mortgage Loan Originator is compensated by someone other than the borrower (i.e. when borrower is selecting the lender-paid option).

Which type of project cost estimate is the most accurate?

During the planning phase of the project, one need the most accurate estimates known as Definitive estimates whose expected accuracy level is between -5 to +5 percentage. Definitive estimates are based on detailed Work Breakdown Structures (WBS).

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. Mortgage brokers who had previously served as the gatekeepers of racial segregation became profiteering agents of racial transition.

How do you avoid steering in real estate?

How to Avoid Steering

  1. HAVE GOOD COMMUNICATION. It all starts with having good communication with your client.
  2. ASK SPECIFIC QUESTIONS. Ask questions that are specific when it comes to where they want to live.

What are the cost estimation techniques?

4 Project Cost Estimation Techniques

  • Analogous Estimating. Through analogous estimating, a project manager calculates the expected costs of a project-based upon the known costs associated with a similar project that was completed in the past.
  • Parametric Estimating.
  • Bottom-Up Estimating.
  • Three-Point Estimating.

How does redlining violate FHA?

Redlining refers to the illegal practice of refusing to make residential loans or imposing more onerous terms on any loans made because of the predominant race, national origin, etc., of the residents of the neighborhood in which the property is located. Redlining violates both the FH Act and the ECOA.

What is the purpose of redlining?

The term refers to the presumed practice of mortgage lenders of drawing red lines around portions of a map to indicate areas or neighborhoods in which they do not want to make loans. Redlining on a racial basis has been held by the courts to be an illegal practice.

What is the definition of redlining?

Redlining, illegal discriminatory practice in which a mortgage lender denies loans or an insurance provider restricts services to certain areas of a community, often because of the racial characteristics of the applicant’s neighbourhood.

What does Steering mean in real estate?

“Steering” is the practice of influencing a buyer’s choice of communities based upon one of the protected characteristics under the Fair Housing Act, which are race, color, religion, gender, disability, familial status, or national origin.

Can you sue for redlining?

Legislative action. In the United States, the Fair Housing Act of 1968 was passed to fight the practice. Anyone who suspects that their neighborhood has been redlined is able to file a housing discrimination complaint. The Equal Credit Opportunity Act (ECOA) is a United States law (codified at 15 U.S.C.

What is steering and blockbusting?

An illegal practice in which licensees or others encourage homeowners to sell because of an influx or expected influx of minorities into the area. redlining. The practice of a lender to refuse to lend in a specific area, often based on the minority makeup of the area. You just studied 3 terms!

Is steering a predatory lending practice?

This payment makes the loan more costly to the borrower. Steering and Targeting: Predatory lenders may steer borrowers into subprime mortgages, even when the borrowers could qualify for a less expensive, typical loan. Vulnerable borrowers may face aggressive sales tactics and sometimes outright fraud.

What is reverse redlining in mortgage?

Reverse redlining is the practice of targeting neighborhoods (mostly non-White) for higher prices or lending on unfair terms such as predatory lending of subprime mortgages.

Which cost estimation is the best one?

The most important estimate methodologies are factor estimating, parametric estimating and detailed estimating:

  • Factor estimating. Factor estimating, also known as top-down estimating, is based on limited project scope.
  • Parametric estimating.
  • Detail Estimating.

Is padding costs and fees a predatory lending practice?

Tactics that Predatory Lenders Use these tactics are high interest rates and high points. Also, there are balloon payments and negative amortization; packing or padding costs and fees; flipping; high LTV loans, and locking borrowers in.

What is phased estimating?

Hence, in these projects, estimating by project and product phases is used to forecast costs and duration more accurately. Phase estimating is typically used when high fluctuations surround a project and it is impractical at the start to forecast costs and duration for the entire project.

What are fees?

A fee is a fixed price charged for a specific service. Fees are applied in a variety of ways such as costs, charges, commissions, and penalties. Fees are most commonly found in heavily transactional services and are paid in lieu of a wage or salary.

What is the opposite of redlining?

Redlining was the practice of the Federal government, private banks, and other institutions to deny credit to neighborhoods based on race. Reverse redlining is marketing inferior credit and other products to those same neighborhoods. Greenlining is incenting investment in previously redlined neighborhoods.

What is steering in mortgage lending?

Steering refers to the illegal practice of directing a prospective homebuyer to or away from a neighborhood based on the presence or absence of protected classes.

What is definition of estimation?

Estimation (or estimating) is the process of finding an estimate, or approximation, which is a value that is usable for some purpose even if input data may be incomplete, uncertain, or unstable. The value is nonetheless usable because it is derived from the best information available.

What is insurance redlining?

Redlining — an underwriting practice involving the rejection of a risk based solely on geographical location. This practice is prohibited under the laws of most states as it tends to be discriminatory to minorities.

What are the implications of providing a less detailed estimate to the project manager and the project plan?

If Total Project Cost is not estimated precisely, the project will have to face serious consequences. It will have a direct impact on the project schedule, quality, and scope. This will lead to cost overrun.

Who is responsible for preparing estimate?

Other professionals such as quantity surveyors and cost engineers may also prepare cost estimates or contribute to cost estimates. In the US, according to the Bureau of Labor Statistics, there were 185,400 cost estimators in 2010. There are around 75,000 professional quantity surveyors working in the UK.

What is padding estimates in project management?

A pad is an extra time and cost added to an estimate because the estimator does not have enough information. If any of the estimates are padded, the project will have an extravagant schedule. In this case, there is no need of creating a schedule or a budget.

What are some common problems with project cost estimation?

Top 5 challenges to cost estimating

  • CHALLENGE #1: Quantifying cost impacts. An engineer may need to reduce the cost of a component by 20% through design modifications.
  • CHALLENGE #2: Resource constraints. Cost estimates must be timely!
  • CHALLENGE #3: Quality of available data.
  • CHALLENGE #4: Large number of organizations involved.
  • CHALLENGE #5: Consistency.

What is padding costs and fees?

Padded costs, the difference between real and observed costs, are a post-contractual hidden action, chosen by the firm to increase its cost reimbursement. In contrast, the pre-contractual investment in cost reduction is the hidden information of the firm at the contracting stage.

What is a blockbuster in real estate?

Blockbusting is a business process in which U.S. real estate agents and building developers convince white property owners to sell their houses at low prices, which they do by telling house owners that racial minorities will soon move into their neighborhoods in order to instill fear in them.