Fair Housing
Under the Fair Housing Act, a lender who charges higher fees or interest rates to minority borrowers with similar qualifications compared to white borrowers is engaged in:
APredatory lending only
BDisparate treatment discrimination✓ Correct
CAcceptable risk-based pricing
DReverse redlining
Explanation
Charging different rates or fees to similarly qualified borrowers based on race or another protected class is disparate treatment (intentional) discrimination, violating the Fair Housing Act and ECOA.
Related North Carolina Fair Housing Questions
- Under the Federal Fair Housing Act, which of the following is NOT a protected class?
- The NC Real Estate Commission's 'Implicit Bias' training component emphasizes that brokers should be aware of:
- Which NC state law mirrors and expands upon the Federal Fair Housing Act to prohibit housing discrimination?
- Steering in real estate refers to:
- A NC landlord who refuses to rent to a family because they have three children (and a policy limits occupancy to 'two persons per bedroom') should be aware that:
- A lender in NC refuses to make mortgage loans in predominantly minority neighborhoods regardless of individual applicants' creditworthiness. This practice is called:
- NC's Fair Housing Act (G.S. 41A) is administered by which agency?
- A NC broker who intentionally violated the Fair Housing Act may face which of the following consequences?
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