Fair Housing
A NC lender who offers a minority borrower a subprime loan with higher fees when the borrower qualifies for a prime loan has engaged in:
AAcceptable risk-based pricing
BReverse redlining — targeting protected class borrowers with predatory loan products✓ Correct
CStandard underwriting practice
DA TILA violation only
Explanation
Targeting minority borrowers with high-cost or predatory loan products when they would qualify for better terms is reverse redlining — a form of lending discrimination violating ECOA and the FHA.
Related North Carolina Fair Housing Questions
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- Which of the following is an example of reasonable accommodation under the Fair Housing Act?
- Under the ADA and Fair Housing Act, a residential building with four or more units built for first occupancy after March 13, 1991 must meet which design requirements?
- A broker who shows minority buyers homes only in minority-concentrated neighborhoods is engaging in:
- Which of the following advertising statements violates the Fair Housing Act?
- The federal Fair Housing Act of 1968 prohibits discrimination based on all of the following EXCEPT:
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