Finance

Which federal act prohibits lenders from discriminating in mortgage lending based on the racial composition of a neighborhood?

ACommunity Reinvestment Act
BEqual Credit Opportunity Act
CHome Mortgage Disclosure Act
DFair Housing Act✓ Correct

Explanation

The Fair Housing Act (Title VIII of the Civil Rights Act of 1968) prohibits discrimination in mortgage lending based on the racial, ethnic, or other protected class composition of a neighborhood — a practice historically known as redlining. HMDA and CRA work together to monitor and address such practices.

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