Fair Housing
Which of the following represents a fair housing issue in mortgage lending?
AApproving loans based on creditworthiness and debt-to-income ratio
BRequiring a higher down payment from applicants of a specific national origin with otherwise identical qualifications✓ Correct
CCharging origination fees based on loan amount
DSetting a minimum income requirement for loan approval
Explanation
Requiring different down payments based on national origin (a protected class) when all other qualifications are equal constitutes lending discrimination under the Equal Credit Opportunity Act and the Fair Housing Act.
Related Arkansas Fair Housing Questions
- An agent is asked by a buyer to provide demographic information about the racial composition of a neighborhood. The agent should:
- The term 'protected class' under fair housing law refers to:
- The penalty for a real estate licensee found in violation of the Arkansas fair housing laws by AREC may include:
- The intent element in a fair housing discrimination claim:
- A complaint under the Federal Fair Housing Act must generally be filed with HUD within:
- A real estate agent is showing properties to a buyer who is a veteran. The agent avoids showing homes in neighborhoods with few veterans. This is:
- A multiple listing service (MLS) that restricts access to membership based on race is:
- A landlord who charges a higher security deposit to tenants of one race is guilty of:
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