Congress has enacted a number of regulations that have established criteria for
evaluating home loan applicants and mandating disclosures in the origination of home
loans. Which of the following congressional acts requires important disclosures
concerning the cost of consumer credit, including the computation of the annual
percentage rate (APR)?
A. Equal Credit Opportunity Act (ECOA)
B. Truth-in-Lending Act (TILA)
C. Real Estate Settlement Procedures Act (RESPA)
D. Home Ownership and Equity Protection Act (HOEPA)
The presence of real estate cycles presents a major challenge when forecasting real
estate market parameters. If the market value of a residential developer's project
exceeds its construction costs, an increase in the supply of units will occur. As the
market becomes oversupplied, we would expect which of the following to occur?
A. an increase in occupancy levels
B. an increase in market values
C. a decrease in real rental rates
D. a decrease in construction costs