A loan officer routinely schedules appointments with female applicants during evening hours but meets male applicants during regular business hours, claiming 'women prefer flexible scheduling.' Several female applicants have complained about feeling uncomfortable with evening appointments. This practice constitutes:
Correct Answer
C) Disparate treatment because men and women are treated differently based on gender stereotypes
This represents disparate treatment under ECOA because the loan officer is intentionally treating applicants differently based on gender stereotypes. Even if the loan officer believes this is helpful, treating people differently based on assumptions about their gender preferences constitutes intentional discrimination. The discomfort expressed by female applicants further demonstrates the discriminatory nature of this practice.
Why This Is the Correct Answer
This represents disparate treatment under ECOA because the loan officer is intentionally treating applicants differently based on gender stereotypes. Even if the loan officer believes this is helpful, treating people differently based on assumptions about their gender preferences constitutes intentional discrimination. The discomfort expressed by female applicants further demonstrates the discriminatory nature of this practice.
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A loan officer consistently requires additional income documentation from Hispanic applicants that is not required from non-Hispanic white applicants with similar financial profiles. This practice would most likely constitute:
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