Fair Housing
A South Carolina lender requires additional documentation from loan applicants based on their national origin. This likely violates:
ARESPA
BThe Equal Credit Opportunity Act and the Fair Housing Act✓ Correct
CTILA
DThe Community Reinvestment Act
Explanation
Requiring additional documentation based on national origin constitutes discrimination in lending, violating both ECOA (which prohibits credit discrimination based on national origin) and the Fair Housing Act.
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Key Terms to Know
Fair Housing Act
Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
SteeringAn illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
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