FinanceIntermediateAlaska Exam

Under the Equal Credit Opportunity Act (ECOA), a lender may NOT deny credit based on:

ADebt-to-income ratio exceeding guidelines
BThe applicant's race, color, religion, national origin, sex, marital status, or ageCorrect
CCredit score below the lender's minimum threshold
DInsufficient income to support the requested loan, as is typical in most transactions

Why The applicant's race, color, religion, national origin, sex, marital status, or age Is Correct

Answer B: The applicant's race, color, religion, national origin, sex, marital status, or age

ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance. Lenders may still consider creditworthiness factors such as income, DTI, and credit score, as these are legitimate lending criteria.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

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