Fair Housing

An Indiana lender who requires a higher down payment from minority applicants than from similarly qualified non-minority applicants is engaging in:

ASound risk management
BIllegal discrimination under ECOA and the Fair Housing Act✓ Correct
CPermitted underwriting discretion
DRequired fair lending practices

Explanation

Requiring different down payments based on race or national origin violates ECOA (which prohibits discrimination in credit) and the Fair Housing Act (which prohibits discrimination in the financing of housing).

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