A receptionist has been told to ask callers with accents whether they hold a valid visa before booking an appointment with an originator. A supervisor is asked to review the script.
Correct Answer
C) Apply neutral standards without protected-class discrimination
Why this is correct: The Fair Housing Act prohibits discrimination in housing-related transactions, including mortgage lending, based on protected characteristics (race, color, religion, sex, national origin, familial status, disability). Lenders must apply neutral, objective standards equally to all applicants. "Apply neutral standards without protected-class discrimination" directly states this core anti-discrimination principle. Why the other choices are wrong: "Use an internal exception instead of the required federal disclosure or timing rule" is wrong because fair housing is civil rights law; internal policies cannot create exceptions to non-discrimination. "Treat the Fair Housing Act review as complete because the file contains a related reverse-mortgage occupancy note" is wrong because a note on a different topic (occupancy) does not demonstrate compliance with non-discrimination standards. "Rely on oral agreement when the rule requires documented compliance" is wrong because fair housing compliance requires documented, consistent application of standards; oral agreements are insufficient evidence. Exam tip: For Fair Housing Act questions, the answer always involves applying neutral, objective standards without regard to protected classes.
Why This Is the Correct Answer
The correct response is "Apply neutral standards without protected-class discrimination" because Mortgage terms and treatment cannot discriminate or redline on protected-class grounds.
Why the Other Options Are Wrong
Option A: Use an internal exception instead of the required federal disclosure or timing rule.
Use an internal exception instead of the required federal disclosure or timing rule. is not correct because it does not apply the rule tested by this file scenario.
Option B: Treat the Fair Housing Act review as complete because the file contains a related reverse-mortgage occupancy note.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Option D: Rely on oral agreement when the rule requires documented compliance.
Rely on oral agreement when the rule requires documented compliance. is not correct because it does not apply the rule tested by this file scenario.
Memory Technique
Fair Housing Act compliance: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
Match the file facts to Fair Housing Act compliance; do not choose an exception or shortcut that skips the required rule.
Common Mistakes to Avoid
- -Choosing an internal exception instead of the governing rule
- -Treating preliminary or informal facts as a substitute for required documentation
- -Answering from a familiar but unrelated mortgage topic
More Federal Laws Questions
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