Finance

A Wyoming lender 'redlines' a neighborhood by refusing to make loans there regardless of individual creditworthiness. This practice:

AIs permissible as a sound risk management strategy
BViolates the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act✓ Correct
CIs regulated only by state banking law
DIs permissible in rural areas with limited appraisal data

Explanation

Redlining violates both ECOA (which prohibits discriminatory lending based on race, color, religion, national origin, sex, marital status, or age) and the Fair Housing Act. It is illegal regardless of stated risk rationale.

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