Fair Housing

A Wisconsin mortgage lender who charges higher interest rates to minority borrowers than to equally qualified white borrowers is engaging in:

ARisk-based pricing
BPredatory lending and reverse redlining✓ Correct
CPermissible market differentiation
DRate shopping

Explanation

Charging minority borrowers higher rates than equally qualified white borrowers is a form of reverse redlining (predatory lending) that violates the Fair Housing Act and ECOA.

Related Wisconsin Fair Housing Questions

Practice More Wisconsin Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Wisconsin Quiz →