Fair HousingIntermediateAlaska Exam

Which federal law prohibits lending discrimination based on a neighborhood's racial or ethnic composition?

ATruth in Lending Act
BCommunity Reinvestment Act
CFair Housing ActCorrect
DEqual Credit Opportunity Act

Why Fair Housing Act Is Correct

Answer C: Fair Housing Act

The Fair Housing Act prohibits mortgage lending discrimination based on the racial, ethnic, religious, or other protected class composition of a neighborhood — this is the illegal practice of redlining. The CRA affirmatively requires reinvestment in underserved communities.

Exam Tip: Fair Housing

Fair Housing questions test both federal (Fair Housing Act of 1968) and state-level protected classes. The federal protected classes are race, color, religion, national origin, sex, familial status, and disability. Many states add additional protections.

Key Fair Housing Terms in This Question

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