An MLO receives a loan application from a borrower whose name suggests they may be of Middle Eastern origin. The MLO decides to require additional documentation beyond standard requirements because 'these types of applications often have complications.' This practice violates the Fair Housing Act under which protected class?
Correct Answer
C) National origin
The Fair Housing Act prohibits discrimination based on national origin, which includes treating applicants differently based on their perceived ancestry, country of origin, or ethnicity. Making assumptions about documentation needs based on a name that suggests national origin 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 their perceived ancestry, country of origin, or ethnicity. Making assumptions about documentation needs based on a name that suggests national origin constitutes prohibited discrimination.
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A lender's HMDA data analysis reveals a pattern where minority applicants are more frequently required to provide additional documentation compared to similarly situated non-minority applicants. This pattern would most likely indicate:
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