A mortgage company systematically charges higher fees to borrowers in zip codes with predominantly minority populations, even when the borrowers have similar credit profiles to those in other areas. This practice is:
Correct Answer
B) A form of redlining that violates fair housing laws
Charging different fees based on geographic areas that correlate with race or ethnicity constitutes redlining and violates the Fair Housing Act. This is true even if there are claimed business justifications, when the practice has a disparate impact on protected classes.
Why This Is the Correct Answer
Charging different fees based on geographic areas that correlate with race or ethnicity constitutes redlining and violates the Fair Housing Act. This is true even if there are claimed business justifications, when the practice has a disparate impact on protected classes.
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A lender's print advertisement includes the statement 'Closing costs as low as $2,500.' Under TILA advertising requirements, this statement:
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A married couple jointly owns their primary residence. The husband signs a refinance loan alone without his wife's knowledge or consent. What are the wife's rescission rights?