Fair Housing

What is 'predatory lending' and how does it relate to fair housing?

AAny high-interest loan product
BDeceptive or abusive lending practices that target vulnerable borrowers, often with protected class characteristics✓ Correct
CStrict underwriting standards
DSub-prime mortgage lending generally

Explanation

Predatory lending involves deceptive, abusive, or exploitative lending practices that strip borrowers of equity, impose excessive fees, or trap them in unaffordable loans. It disproportionately affects minority and elderly borrowers, potentially constituting fair lending violations.

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