An MLO learns that a borrower is purchasing a home to live with their same-sex partner. The MLO processes the application normally but mentions that 'some neighborhoods might be more accepting than others.' This statement:
Correct Answer
B) Constitutes prohibited steering based on perceived sexual orientation
While sexual orientation is not explicitly listed in the federal Fair Housing Act, many courts have found that discrimination based on sexual orientation constitutes sex discrimination. Additionally, steering comments about neighborhood 'acceptance' based on the borrower's relationship status violate fair housing principles by directing them toward or away from certain areas.
Why This Is the Correct Answer
While sexual orientation is not explicitly listed in the federal Fair Housing Act, many courts have found that discrimination based on sexual orientation constitutes sex discrimination. Additionally, steering comments about neighborhood 'acceptance' based on the borrower's relationship status violate fair housing principles by directing them toward or away from certain areas.
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