Fair Housing

A lender who charges a higher interest rate to a minority borrower than to a similarly qualified white borrower with no business justification is engaging in:

ABlockbusting
BPredatory lending and potential fair lending violations✓ Correct
CSteering
DRedlining

Explanation

Charging higher rates to minority borrowers without business justification is a form of predatory lending and constitutes illegal discrimination under ECOA and the Fair Housing Act, particularly the disparate treatment doctrine.

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