Fair Housing and Consumer Protection
This domain tests federal and state fair-housing rules and consumer-protection statutes that govern advertising, lending, escrow, and disclosures.
Fair housing
The federal Fair Housing Act prohibits discrimination in sale, rental, financing, and advertising based on race, color, religion, sex, national origin, familial status, and disability. Prohibited practices include steering, blockbusting, redlining, discriminatory terms, and refusing reasonable accommodations or modifications for disability. HOPA permits qualified housing for older persons, but the exemption does not authorize discriminatory advertising. State and local laws may add protected classes.
Consumer protection
RESPA prohibits Section 8 kickbacks and unearned referral fees for federally related mortgage loans; it also regulates affiliated business arrangements and escrow. TILA requires APR and other credit disclosures and gives a right of rescission for certain refinances and home-equity lines, not most purchase loans. ECOA requires adverse-action notices. UDAAP prohibits unfair, deceptive, or abusive acts. Sellers and agents must follow disclosure rules for known material defects.
Worked example
A landlord advertises 'No children; quiet adult building.' Familial status is a federal protected class. Unless the property qualifies under HOPA and follows its rules, the ad is discriminatory on its face. If a tenant with a disability asks for an assigned parking space near the unit, the landlord must consider it as a reasonable accommodation; the landlord may deny only if the request is unreasonable or an undue burden, not merely because it is inconvenient.
Traps
'Adults only' is not automatically lawful. A neutral rule can be discriminatory in effect. Steering includes guiding buyers to neighborhoods by race. RESPA violations can occur even if the referral fee is called marketing. Do not confuse TILA rescission with a general buyer's remorse right.