Fair Housing
A lender who charges higher interest rates to borrowers from a specific ethnic neighborhood, regardless of their creditworthiness, is engaging in:
APredatory lending only, which is a separate violation from fair housing
BReverse redlining (a form of discriminatory lending that targets protected classes with unfavorable loan terms)✓ Correct
CLegitimate risk-based pricing
DSubprime lending, which is legal and not a fair housing violation
Explanation
Reverse redlining (also called 'reverse discrimination' in lending) involves targeting minority communities or protected class members with predatory or unfavorable loan terms rather than denying them credit. It violates the Fair Housing Act and Equal Credit Opportunity Act as much as traditional redlining.
Related Arizona Fair Housing Questions
- Under the Fair Housing Act, 'steering' is an illegal practice in which a real estate agent:
- A real estate agent who tells prospective buyers that a neighborhood is 'changing' in a way that implies racial or ethnic composition as a reason to buy or sell is engaging in:
- Which of the following is considered disparate impact discrimination?
- An Arizona landlord tells a prospective tenant 'we don't rent to people like you.' If the prospective tenant is a member of a protected class, this statement may constitute:
- Under the federal Fair Housing Act, an exemption may apply when:
- Redlining is the illegal practice of:
- An Arizona property owner refuses to rent to a family with children under 18, claiming 'adults only.' This is:
- Under the Fair Housing Act's disability provisions, a tenant with a disability has the right to:
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