Fair Housing
Under Washington law, a lender that requires a higher down payment from minority applicants than from similarly qualified non-minority applicants is:
AExercising legitimate risk management
BCommitting illegal disparate treatment in violation of ECOA and the Fair Housing Act✓ Correct
CComplying with investor guidelines
DPermitted if disclosed in the loan offer
Explanation
Requiring different down payments based on race or national origin is illegal disparate treatment under both ECOA (Equal Credit Opportunity Act) and the Fair Housing Act. All applicants must be evaluated on the same financial criteria.
Related Washington Fair Housing Questions
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