During a loan interview, a borrower mentions they are recently divorced and will be receiving alimony payments. The MLO asks detailed questions about the borrower's ex-spouse's employment stability and suggests the borrower might want to consider a less expensive home 'until things settle down.' This response:
Correct Answer
B) Violates fair housing laws regarding familial status
The Fair Housing Act's familial status protection includes discrimination based on marital status changes. The MLO's suggestion that the borrower consider a less expensive home based on divorce status, rather than objective financial analysis, constitutes prohibited discrimination based on familial status.
Why This Is the Correct Answer
The Fair Housing Act's familial status protection includes discrimination based on marital status changes. The MLO's suggestion that the borrower consider a less expensive home based on divorce status, rather than objective financial analysis, constitutes prohibited discrimination based on familial status.
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