Fair Housing

A Florida mortgage lender requires a property in a minority neighborhood to have a higher appraisal relative to loan amount compared to similar properties in white neighborhoods. This is called:

ASteering
BRedlining
CDiscriminatory underwriting✓ Correct
DPuffing

Explanation

Discriminatory underwriting involves applying more stringent loan conditions to minority applicants or properties in minority areas. This practice violates both the Fair Housing Act and ECOA, even if the applicant's credit is identical to a non-minority applicant.

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