An MLO consistently offers higher interest rates to borrowers with Spanish surnames, even when they have identical credit profiles to other borrowers who receive better rates. The MLO claims this is based on 'market conditions in certain neighborhoods.' This practice constitutes:
Correct Answer
C) Disparate treatment because it involves intentional discrimination based on national origin
This is disparate treatment under the Fair Housing Act and ECOA because the MLO is intentionally treating borrowers differently based on their perceived national origin (Spanish surnames). The excuse about 'market conditions' does not justify treating similarly qualified borrowers differently based on their ethnicity or national origin.
Why This Is the Correct Answer
This is disparate treatment under the Fair Housing Act and ECOA because the MLO is intentionally treating borrowers differently based on their perceived national origin (Spanish surnames). The excuse about 'market conditions' does not justify treating similarly qualified borrowers differently based on their ethnicity or national origin.
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An investor purchases a property using a straw buyer, then immediately sells it to another straw buyer at an inflated price, with plans to rent it back to the original seller. The original seller will live in the property. This scheme primarily constitutes:
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An MLO's company requires all borrowers to use a specific attorney for closings, and the MLO later learns this attorney provides the company with monthly marketing payments. The MLO was unaware of this arrangement when hired. What should the MLO do?