Fair Housing
What is 'discriminatory financing' (reverse redlining) and how does it violate fair housing law?
ACharging higher-income borrowers premium interest rates because they can afford them
BTargeting protected classes with predatory, high-cost loan products that strip equity and carry excessive fees — the opposite of traditional redlining (denying loans) but equally discriminatory✓ Correct
CA lender's policy of reducing rates for buyers in designated revitalization areas
DA fair housing violation occurring only when a lender explicitly states a discriminatory intent
Explanation
Reverse redlining (discriminatory pricing) occurs when lenders target protected class communities with predatory loan products — high-cost subprime mortgages, balloon loans, excessive fees — rather than denying credit outright. Pre-2008, many Pennsylvania minority communities were targeted with predatory lending. The Equal Credit Opportunity Act (ECOA) and Fair Housing Act prohibit both denial and predatory targeting based on protected characteristics. Disparate impact claims analyze whether pricing disparities have discriminatory effects.
Related Pennsylvania Fair Housing Questions
- The Pennsylvania Human Relations Act (PHRA) prohibits discrimination in housing based on which protected class NOT covered by the federal Fair Housing Act?
- A Pennsylvania developer's new condominium development markets exclusively to adults 55 and older. Under the Fair Housing Act, this is:
- An advertisement for a Pennsylvania rental that states 'No Section 8' may constitute:
- Which of the following is considered a reasonable accommodation under the Fair Housing Act for a disabled resident?
- A Pennsylvania landlord can legally inquire about whether a service animal has been trained if:
- Under Pennsylvania law, can a landlord refuse to rent to someone based on a prior eviction record?
- Redlining is the illegal practice of:
- Steering violates fair housing laws by:
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