Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Texas Real Estate SAE Exam with our educational quiz. Study using flashcards and multiple choice questions, each with detailed explanations to ensure you're ready to pass your exam!

Practice this question and more.


Which bureau of the U.S. Treasury is responsible for passing regulations banning redlining?

  1. Federal Reserve System

  2. Office of Thrift Supervision

  3. Office of the Controller of the Currency

  4. Financial Crimes Enforcement Network

The correct answer is: Office of Thrift Supervision

The Office of Thrift Supervision played a significant role in overseeing savings associations and ensuring they complied with various regulations, including those aimed at preventing discriminatory practices such as redlining. This bureau was responsible for enforcing regulations that aligned with the objectives of the Home Mortgage Disclosure Act (HMDA) and the Community Reinvestment Act (CRA), which were designed to eliminate redlining by requiring lending institutions to provide equal access to credit regardless of the geographic area or demographic composition. While other bureaus have important roles in the regulation of financial institutions, the Office of Thrift Supervision specifically focused on thrifts and closely monitored their lending practices, thereby addressing issues related to redlining directly. The Federal Reserve System, for instance, mainly influences monetary policy and oversees banks, rather than directly regulating housing finance practices. The Office of the Controller of the Currency has a similar focus but primarily oversees national banks rather than thrift institutions exclusively. The Financial Crimes Enforcement Network typically deals with financial crimes, such as money laundering, and does not directly address lending practices such as redlining. Thus, the Office of Thrift Supervision is the most relevant agency in the context of banning redlining.