A borrower who uses a wheelchair asks about accessible properties during the loan process. The MLO responds that 'there aren't many suitable properties in the better neighborhoods' and suggests looking in a specific area known for having more disabled residents. This response:
Correct Answer
B) Constitutes steering based on disability status
Under the Fair Housing Act, disability is a protected class. The MLO's response steers the borrower toward a specific area based on disability status and makes assumptions about which neighborhoods are 'suitable' for disabled individuals. This constitutes prohibited steering based on disability.
Why This Is the Correct Answer
Under the Fair Housing Act, disability is a protected class. The MLO's response steers the borrower toward a specific area based on disability status and makes assumptions about which neighborhoods are 'suitable' for disabled individuals. This constitutes prohibited steering based on disability.
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