Finance
A Utah mortgage lender who charges a higher interest rate to a borrower of a specific race, despite the borrower qualifying for a lower rate, is committing:
ALegal risk-based pricing
BPredatory lending and a violation of ECOA and the Fair Housing Act✓ Correct
CMarket-rate lending based on supply and demand
DA practice permitted if the borrower signs a disclosure
Explanation
Charging higher rates based on race violates both ECOA (which prohibits credit discrimination based on race) and the Fair Housing Act. This is also a form of predatory lending—exploiting borrowers from protected classes with unfair loan terms.
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