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.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which information is NOT required to be included in an AfBA disclosure?
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