Finance
In Kansas, what is the purpose of the Community Reinvestment Act (CRA)?
ATo regulate appraisal standards in minority communities
BTo encourage banks and savings institutions to meet the credit needs of their entire communities, including low-to-moderate income areas✓ Correct
CTo provide direct housing loans to low-income buyers
DTo establish community land trusts in underserved areas
Explanation
The CRA requires banks and savings institutions to help meet the credit needs of all communities in which they operate, particularly low-to-moderate income communities, and is evaluated by federal regulators.
Related Kansas Finance Questions
- A Kansas borrower with significant student loan debt is applying for a mortgage. How does the lender treat student loan debt in the DTI calculation?
- What is the loan-to-value (LTV) ratio of a property appraised at $200,000 with a $160,000 mortgage?
- In Kansas, a 'short sale' occurs when:
- Fannie Mae (FNMA) and Freddie Mac (FHLMC) are important to Kansas real estate because they:
- What is the difference between 'discount points' and 'origination fees' in a Kansas mortgage?
- In Kansas, the 'right of rescission' under the Truth in Lending Act allows a borrower to cancel a refinance transaction within:
- Which Kansas borrower would most benefit from an FHA 203(k) rehabilitation loan?
- What is a 'home equity line of credit' (HELOC) and how might Kansas homeowners use it?
Practice More Kansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kansas Quiz →