Finance
In Texas, the concept of 'lender liability' in real estate transactions includes scenarios where a lender may be liable for:
AOnly for loan defaults
BDiscriminatory lending practices, negligent appraisals, or failure to make required disclosures✓ Correct
CInterest rate fluctuations after closing
DProperty value declines after origination
Explanation
Lender liability in real estate can arise from discriminatory lending (ECOA, Fair Housing Act, HMDA violations), negligent or fraudulent appraisals, failure to make required TRID or TILA disclosures, and other statutory violations. Lenders who engage in redlining or reverse redlining face significant liability under federal and state law.
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