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
A) 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.
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?
A lender quotes an APR of 4.25% on a mortgage loan, but the actual APR calculation results in 4.28%. Under TILA's APR accuracy tolerance, is this disclosure compliant?
Which of the following fees would NOT be included in the finance charge calculation under TILA?
For a purchase money mortgage with a loan amount of $400,000, which of the following represents the correct method for calculating the APR?
A servicer receives a borrower's written request for payoff information on Monday. The borrower needs the information for a refinance closing scheduled for the following Friday. When must the servicer provide an accurate payoff statement?
A lender provides a borrower with initial TILA disclosures showing an APR of 4.5%. Due to market changes, the final APR at closing is 4.625%. What disclosure requirement applies?
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