Fair Housing

A Georgia lender who charges higher fees to buyers of properties in certain zip codes — without regard to borrower creditworthiness — may be engaging in:

AA. Sound geographic risk management
BB. Redlining or discriminatory lending based on neighborhood demographics✓ Correct
CC. Acceptable pricing based on property location factors
DD. Compliance with Community Reinvestment Act requirements

Explanation

Charging higher fees based solely on geographic location without creditworthiness justification — particularly if those neighborhoods are predominantly minority — is a form of redlining. This violates the Fair Housing Act and ECOA.

Related Georgia Fair Housing Questions

Practice More Georgia Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Georgia Quiz →