Fair Housing

Which of the following activities by a lender violates the Fair Housing Act?

AA. Requiring a minimum credit score of 620
BB. Offering more favorable interest rates to borrowers of certain races✓ Correct
CC. Requiring income verification
DD. Charging higher rates in high-risk flood zones

Explanation

Offering different loan terms (including interest rates) based on race is illegal under the Fair Housing Act and the Equal Credit Opportunity Act. All applicants must be evaluated on the same underwriting criteria.

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