Joanne lives in the Hill district of Pittsburgh, Pennsylvania. She has applied for a mortgage loan for purposes of buying a larger home there. The supervising one officer at the bank explained to the bank employee who took the application that the bank would be making no loan to people in Hill district.

The loan officer explained, are you aware of how many people in the Hill district fail to make their payments? That's a bottomless pit out there. No one out there is getting any credit from this Bank. Even insurance companies don't right policies out there. Basing a decision to extend credit based on residence is:

A. An example of permissible criteria for screening credit applications

B. a violation of Title VII of the Civil Rights Act

C. a violation of Regulation Q

D. none of the above

E. a violation of TILA

2. Mortgage rates have been increasingly sharp in the US recently, due in part to actions of the Federal Reserve. What are the policy actions of the Fed or the US Treasury that have led to such sharp increases in interest rates?

A. An increase and required Reserve ratio

B. an increase in 30 year treasury bond yields engineered by the Fed

C. increase printing of money by the FED to pay for various programs

D. an increase in discount rates which affect the inter-bank borrowing rate known as federal funds rate

E. none of the above

3. Suppose that Tommy purchased Zack's home at a foreclosure sale. Tommy paid $220,000. Suppose Tommy moves into Zack's house and begins getting notices from Paddock and Wells Fargo about amounts due from Zack's period of ownership.

A. Tommy is not liable to these creditors for what's owed

B. Tommy is required to pay those amounts because what he paid for the house did not satisfy what was due to all the creditors

C. Paddock and Wells Fargo now have their right to foreclose on the property

D. Tommy needs to sign a mortgage with these creditors to renew their mortgages on the property

4. Which of the following homeowners would you identify as a good candidate for a reverse mortgage?

A. Jay and Cindy, both 65, I want a large home and hope to transfer the wealth of their estate to their children

B. Louis is a 70 year old Widow who needs extra income to maintain her standard of living into her old age as she has no children or family to assist her.

C. Ron who is 55 years old and working and has never been on a trip around the world and would like to do that while he still has his health.

D. Karen is 60 years old and desperate to extract some of the equity from her home into cash so she can use it for living expenses.

E. Oprah hears an infomercial About home equity conversion mortgages and is interested in applying for one to apply to her small 5 unit apartment building.