What is 'predatory lending' and how does it relate to fair housing in Delaware?
Why Abusive lending practices that target vulnerable populations (often minorities) with high-cost, exploitative loan terms, violating both HOEPA and potentially fair housing laws Is Correct
Answer B: Abusive lending practices that target vulnerable populations (often minorities) with high-cost, exploitative loan terms, violating both HOEPA and potentially fair housing laws
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.
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Key Terms to Know
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
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.
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.
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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