1. Financial Agencies and Lending
Programs
Chapter 6
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2. Agricultural Lending
• Need for flexibility
• Open-end mortgages
• Moratorium on payments
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3. The Farm Credit System (FCS)
• Farm Credit Administration (FCA)
• Federal Agriculture Mortgage Corporation (Farmer Mac)
• The U.S. Department of Agricultural Rural Development
Program (USDA Rural Development)
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4. U.S. Department of Housing and Urban Development
(HUD)
• Supervises the Federal Housing Administration (FHA)
• Directs Ginnie Mae
• Directs development block grants
• Enforces fair housing and RESPA regulations
• Manages the Housing Choice Voucher Program
• Regulates interstate land sales registration, urban
renewal, and rehabilitation programs
• Stabilization Project
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5. HUD Strategic Plan
• Increase home ownership opportunities
• Promote decent affordable housing
• Strengthen communities
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6. HUD: Other Program
• Urban renewal
• Subsidized housing
• Community Development Block Grants (CDBG)
• Public Housing
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7. The Real Estate Settlement Procedures Act (RESPA)
• Protects participants in a real estate
transaction by providing closing cost
information so they better understand the
settlement procedures
• Disclosures
– At time of loan application
– Before settlement closing
– At settlement
– After settlement
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8. The Federal Equal Credit
Opportunity Act (ECOA)
• Prohibits lenders from discriminating against
credit applicants on the basis of
race, color, religion, national
origin, sex, marital status, age, or dependency
on public assistance.
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9. Interstate Land Sales
• Established criteria for the dissemination of
vital information to potential buyers of
residential land.
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10. Federal Legislation
• Fair Housing Act
• Uhruh Civil Rights Act (Civil Code Section 51)
• Community Reinvestment Act
• The Home Mortgage Disclosure Act
• Truth-in-Lending (Regulation Z)
– Advertising
– Right of rescission
• Usury Laws
– Federal
– California
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11. State Financing Agencies
• Industrial Development Agency
• Community Redevelopment Agency (CRA)
– Tax-increment financing
– Mortgage revenue bonds
– Special assessments
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12. California Housing Finance Agency
(CALHFA)
• Affordable housing bank to make low interest
rate loans through the sale of tax-exempt
bonds for eligible first-time homebuyers
– Not a direct lender
– Works through approved lenders
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13. City Of Los Angeles Home
Mortgage Program
• Provides mortgage loans to low-income and
moderate-income first-time homebuyers who
wish to purchase from selected new homes
and condominiums.
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14. The Housing Financial Discrimination Act of 1977
(Holden Act)
• Offsets illegal practice of redlining
• Prohibits discrimination
• Encourages increased lending in areas where
financing has been unavailable
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