Fair Housing

A Montana lender who charges a higher interest rate to a minority borrower compared to a similarly qualified white borrower is committing:

ALegal risk-based pricing
BDisparate treatment discrimination, violating the Fair Housing Act and ECOA✓ Correct
CA violation of TILA only
DA violation of RESPA only

Explanation

Charging different loan terms based on race or other protected characteristics—regardless of similar creditworthiness—is illegal disparate treatment under both the Fair Housing Act (for mortgage lending) and the Equal Credit Opportunity Act.

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