Fair Housing

A Missouri lender who charges higher interest rates to minority borrowers in similar financial situations as non-minority borrowers is engaged in:

ALegal differential pricing
BPredatory lending and illegal discrimination under ECOA and the Fair Housing Act✓ Correct
CRedlining
DStandard risk-based pricing

Explanation

Charging minorities higher rates than equally qualified non-minorities violates ECOA (Equal Credit Opportunity Act) and the Fair Housing Act. This is a form of predatory lending and discriminatory credit practices.

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