An MLO notices that a borrower has an accent and asks additional questions about their immigration status and length of time in the United States, even though the borrower provided standard documentation of legal residence. This questioning:
Correct Answer
B) Violates fair housing protections against national origin discrimination
The Fair Housing Act prohibits discrimination based on national origin, which includes treating applicants differently based on accent, perceived foreign birth, or assumptions about immigration status. If standard documentation has been provided, additional questioning based solely on accent constitutes prohibited discrimination.
Why This Is the Correct Answer
The Fair Housing Act prohibits discrimination based on national origin, which includes treating applicants differently based on accent, perceived foreign birth, or assumptions about immigration status. If standard documentation has been provided, additional questioning based solely on accent constitutes prohibited discrimination.
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A mortgage advertisement states 'Payments as low as $950 for qualified borrowers.' What must be disclosed if this triggers additional requirements?
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A borrower's loan application includes a request for a specific loan amount, but during underwriting, the lender determines they qualify for a higher amount and wants to offer it. The loan terms remain the same except for the loan amount. What action is required?