Fair Housing
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:
AA. Standard risk management
BB. Reverse redlining — predatory lending targeting minority neighborhoods with worse terms✓ Correct
CC. Acceptable underwriting variation
DD. Legally required geographic risk assessment
Explanation
Requiring worse loan terms (higher down payments, rates, or fees) in predominantly minority neighborhoods — not based on individual borrower risk but on the neighborhood's racial composition — is a form of reverse redlining or discriminatory pricing. It violates the Fair Housing Act and the Equal Credit Opportunity Act even when all applicants formally 'qualify.'
Related Colorado Fair Housing Questions
- HUD's Affirmatively Furthering Fair Housing (AFFH) rule requires communities receiving HUD funding to:
- A Colorado apartment complex owner who allows a white tenant's unauthorized pet to stay while evicting a Black tenant for the same violation is engaged in:
- A Colorado real estate broker shows buyers only homes in certain neighborhoods based on their race. This practice is called:
- A Colorado housing provider asks an applicant 'Are you planning to have children?' during a rental screening. This question:
- A Colorado landlord adds a clause to all leases stating 'no children under 12 allowed.' This violates which protected class under the Fair Housing Act?
- A Colorado landlord can legally discriminate against a rental applicant based on their:
- Under the Fair Housing Act, which of the following is a protected class?
- A Colorado broker found guilty of a Fair Housing violation may face:
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