Fair Housing
Which federal law prohibits lending discrimination based on a neighborhood's racial or ethnic composition?
ATruth in Lending Act
BCommunity Reinvestment Act
CFair Housing Act✓ Correct
DEqual Credit Opportunity Act
Explanation
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.
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