Fair Housing
Under the Fair Housing Act, which of the following actions by a lender is ILLEGAL?
ACharging higher interest rates based on a borrower's lower credit score
BRequiring larger down payments from borrowers based on their racial background✓ Correct
CDeclining to lend on properties with structural defects
DRequiring proof of income for all loan applicants
Explanation
Requiring larger down payments from borrowers based on race violates the Fair Housing Act (and ECOA). Lenders may apply creditworthiness standards uniformly based on financial qualifications, but race, color, religion, national origin, sex, disability, and familial status cannot be factors.
Related Iowa Fair Housing Questions
- Which of the following housing situations is covered by the familial status protection under the Fair Housing Act?
- Under the Fair Housing Act, which of the following is an example of a reasonable accommodation?
- Steering in real estate refers to the illegal practice of:
- Which of the following types of housing is exempt from the federal Fair Housing Act's familial status protection?
- A real estate agent who discourages a buyer from purchasing a home in a particular neighborhood by citing the religious composition of the neighborhood is engaging in:
- A Des Moines landlord advertises 'ideal for young professionals only.' This ad is potentially problematic because it may discriminate against which protected class?
- An Iowa housing provider who charges a higher security deposit to a family with children than to a single adult:
- Which of the following fair housing violations involves a lender?
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