Fair Housing

A Nebraska lender denies a mortgage to an applicant because the property is located in a predominantly minority neighborhood, not because of the applicant's creditworthiness. This is:

ALegal if the neighborhood has higher default rates
BRedlining — an illegal discriminatory lending practice✓ Correct
CPermissible risk-based lending
DA fair housing violation only if the applicant is a minority

Explanation

Redlining — denying loans based on the racial or ethnic composition of a neighborhood — is illegal regardless of the applicant's race. This practice violates the Fair Housing Act and the Equal Credit Opportunity Act.

Related Nebraska Fair Housing Questions

Practice More Nebraska Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Nebraska Quiz →