A Colorado lender who denies loans in certain minority-majority neighborhoods, regardless of the creditworthiness of individual applicants, is engaging in:
Why B. Redlining Is Correct
Answer B: B. Redlining
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
Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.
SteeringAn illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
RedliningAn illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.
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Related Colorado Questions
- A Colorado real estate broker shows buyers only homes in certain neighborhoods based on their race. This practice is called:Fair Housing
- A lender in Colorado refuses to make mortgage loans on properties located in a predominantly minority neighborhood regardless of the individual applicant's creditworthiness. This is called:Fair Housing
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating against credit applicants on the basis of:Finance
- Under the Fair Housing Act, a buyer's broker who advises a minority client to look for homes only in certain neighborhoods based on race is violating the law through:Fair Housing
- Under the 'Equal Credit Opportunity Act' (ECOA), a Colorado lender may NOT deny a mortgage application based on:Finance
- A Colorado buyer who is rejected for a mortgage loan is entitled under the Equal Credit Opportunity Act (ECOA) to receive:Finance
- Under the Fair Housing Act, a lender who requires a higher down payment from buyers purchasing in predominantly minority neighborhoods compared to other neighborhoods is engaging in:Fair Housing
- An individual licensed as a Colorado real estate broker wishes to practice under a team name. What is required?Colorado License Law
Key Terms to Know
An illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.
RedliningAn illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.
Fair Housing ActFederal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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