Fair Housing
A North Dakota mortgage lender requires a property to be in a 'desirable neighborhood' as determined by its internal criteria. If these criteria result in fewer loans in minority neighborhoods, this is a potential:
ALegitimate underwriting decision
BRedlining violation under the Fair Housing Act and Community Reinvestment Act✓ Correct
CRESPA violation only
DPermissible use of neighborhood analysis
Explanation
Lender policies that effectively deny credit in neighborhoods based on their racial or ethnic composition—regardless of individual borrower qualifications—constitute redlining in violation of the Fair Housing Act and the Equal Credit Opportunity Act.
Related North Dakota Fair Housing Questions
- Under the Fair Housing Act, 'reasonable accommodation' refers to:
- A North Dakota housing development advertises exclusively in English-language newspapers. If this results in fewer minority applicants due to language barriers, it may create a claim of:
- Steering a Native American family away from a predominantly white neighborhood in Bismarck violates:
- In North Dakota, which of the following best describes the duty of a real estate agent to avoid 'steering'?
- Which federal agency administers fair housing enforcement and investigates complaints?
- A North Dakota property manager refuses to process a rental application from a qualified applicant because the applicant has a physical disability that is visible. This is:
- Under North Dakota fair housing law, which of the following is a protected class related to family composition?
- Under the federal Fair Housing Act, which of the following is a permitted practice for a religious organization owning non-commercial housing?
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