Fair Housing

Under the Fair Housing Act, a lender who charges higher interest rates to minority borrowers than to equally qualified white borrowers is engaging in:

ALegal risk-based pricing
BDiscriminatory lending (predatory lending/reverse redlining), which violates both the Fair Housing Act and the Equal Credit Opportunity Act✓ Correct
CStandard adjustable rate mortgage pricing
DAcceptable credit scoring practices

Explanation

Charging higher rates to minority borrowers who are equally qualified as white borrowers constitutes racial discrimination in lending, violating the Fair Housing Act and ECOA. This practice, known as reverse redlining or predatory lending targeting minorities, is illegal.

Related Oklahoma Fair Housing Questions

Practice More Oklahoma Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Oklahoma Quiz →