Fair Housing

In Indiana, a lender who requires minority borrowers to provide more documentation than non-minority applicants with identical credit profiles is engaged in:

AStandard underwriting procedures
BDiscriminatory lending practices violating the Fair Housing Act and ECOA✓ Correct
CPrudent risk management
DA permitted exception for first-time buyers

Explanation

Requiring more documentation from minority applicants than from similarly qualified non-minority applicants constitutes discriminatory lending, violating both the Fair Housing Act and the Equal Credit Opportunity Act (ECOA).

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