Fair Housing

A Wisconsin lender who requires a larger down payment from buyers in certain neighborhoods based on race is engaging in:

ARisk-based underwriting
BRedlining and discriminatory lending✓ Correct
CRESPA compliance
DPermissible market differentiation

Explanation

Requiring larger down payments based on the racial composition of the neighborhood is a form of redlining — discriminatory lending that violates the Fair Housing Act and ECOA.

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