Fair Housing
A Texas mortgage company's policy of requiring a higher credit score for loans in minority neighborhoods than in comparable predominantly white neighborhoods would be an example of:
ASound risk management
BRedlining and potential ECOA/FHA violation✓ Correct
CA permissible HMDA reporting adjustment
DA TREC advertising violation
Explanation
Applying different underwriting standards based on the racial composition of a neighborhood (redlining) violates the Fair Housing Act and potentially ECOA. Lending criteria must be applied consistently regardless of the neighborhood's demographic characteristics.
Related Texas Fair Housing Questions
- The Texas Fair Housing Act provides protections that are at least equivalent to federal law. Texas cities may also enact local fair housing ordinances that:
- Which federal agency administers and enforces the Fair Housing Act?
- The Fair Housing Act prohibits which of the following advertising practices?
- Under the Fair Housing Act, a complaint must be filed with HUD within:
- The Fair Housing Act's prohibition on discrimination extends to which of the following actions by a real estate agent?
- A Texas property management company refuses to accept housing vouchers (Section 8) as a form of rent payment. Under federal Fair Housing Act, this policy:
- A Texas real estate agent who uses different contract terms for clients of different national origins is engaging in:
- A Texas real estate company's training materials state that agents should 'read' clients and only show them properties in neighborhoods that match their background. This policy:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →