Regulatory Environment Case Study Scenario: A husband who works at a restaurant making $15 an hour and the wife working at a resort making $16 an hour are interested in purchasing a home. They visit with a loan officer who informs them they are approved to buy a $150,000 home at a 30-year fixed interest rate of 4.5%, meaning their payment will remain the same over the term of the loan. In addition, the loan officer explains to them that they qualify for a $300,000 home at a variable rate of 2.5% the first year, with the interest going up to 8% over the next 5 years. This meaning their payment would be a low rate for the first year but will increase over time with the potential to refinance after a year to a more favorable rate. Keep in mind the loan officer's commission is based on the loan amount.

The scenario above includes a client's pertinent background information related to a real estate transaction:

1. Summarize the main issue of the scenario, including a brief description of the key elements that are in direct violation of federal real estate law, regulation, or the real estate code of ethics.
2. Identify and discuss the specific federal regulations and laws that are being violated in the scenario. In your discussion, include a definition, of the law or regulation and provide an example of how it is impacting the real estate industry. Your example must differ from the situation presented in your assigned case study scenario.
3. Identify and analyze the decisions in the scenario that violate the real estate agent code of ethics froma Christian worldview perspective. In your analysis, be sure to discuss the responsibility a real estate agent has in promoting justice and concern for the common good. Considering that the work carried out in the public arena matters to God and our neighbors, indicate the course of action you would take if you were performing the real estate transaction described in the scenario.