Fair HousingIntermediateArizona Exam

Under Arizona fair housing law, which of the following would constitute discrimination in lending?

ARequiring a minimum credit score for all applicants
BCharging higher interest rates to applicants based on their raceCorrect
CRequiring income documentation from all borrowers
DRefusing loans on investment properties in any market

Why Charging higher interest rates to applicants based on their race Is Correct

Answer B: Charging higher interest rates to applicants based on their race

Charging different interest rates, terms, or conditions based on a borrower's race (or other protected class) is discriminatory lending—a violation of both the Fair Housing Act and the Equal Credit Opportunity Act.

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

People Also Study

Math Concepts

Study This Topic

Practice More Arizona Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Arizona Quiz →