Finance
Under the Fair Housing Act, 'blockbusting' by a lender would include:
AOffering competitive interest rates in diverse neighborhoods
BExploiting racial change to make mortgage loans on unfavorable terms to homeowners panicking to sell✓ Correct
CRefusing all loans in a specific zip code
DRequiring additional documentation for all applicants
Explanation
Blockbusting by a lender could involve using racial fears to induce quick sales or to make predatory loans to panicking homeowners at exploitative terms. This violates both the Fair Housing Act and ECOA.
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