Fair Housing

A Wisconsin mortgage lender who denies a loan based on the property's location in a minority neighborhood (not based on the borrower's creditworthiness) is engaging in:

APermissible risk-based underwriting
BGeographic redlining, which violates the Fair Housing Act and ECOA✓ Correct
CAppropriate market analysis
DCRA compliance activity

Explanation

Denying loans based on the racial or ethnic composition of a neighborhood — rather than the individual borrower's creditworthiness — is redlining, illegal under both the Fair Housing Act and ECOA.

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