Fair Housing
A New Mexico lender charges a Hispanic borrower a higher interest rate than a similarly qualified White borrower. This is an example of:
ALegal risk-based pricing
BIllegal discrimination based on national origin or race under the Fair Housing Act and Equal Credit Opportunity Act✓ Correct
CStandard underwriting variation
DRedlining
Explanation
Charging different rates based on race or national origin — rather than creditworthiness — is illegal reverse redlining (predatory lending targeting protected classes). It violates both ECOA and the Fair Housing Act.
Related New Mexico Fair Housing Questions
- The federal Fair Housing Act prohibits discrimination based on which classes?
- The HUD Fair Housing Poster must be displayed by:
- New Mexico's Mortgage Lending Act regulates which of the following?
- In New Mexico, the concept of 'reasonable accommodation' in fair housing applies to:
- Under the Fair Housing Act, 'steering' is illegal. Steering occurs when a broker:
- A New Mexico apartment manager who charges a higher security deposit to families with children than to childless adults is:
- A New Mexico landlord advertises 'ideal for professional couple without children.' This advertisement is:
- A New Mexico property manager advertises an apartment with the phrase 'perfect for young professionals.' This could be considered:
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