The primary difference between disparate treatment and disparate impact discrimination is:
Correct Answer
B) Disparate treatment requires intent while disparate impact focuses on effects
The key distinction is that disparate treatment requires proof of intentional discrimination based on protected class membership, while disparate impact focuses on whether a facially neutral practice has a discriminatory effect on protected classes, regardless of intent. Both theories apply to all protected classes under fair lending laws.
Why This Is the Correct Answer
The key distinction is that disparate treatment requires proof of intentional discrimination based on protected class membership, while disparate impact focuses on whether a facially neutral practice has a discriminatory effect on protected classes, regardless of intent. Both theories apply to all protected classes under fair lending laws.
More Ethics & Fraud Questions
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An MLO discovers that multiple loan applications from different borrowers contain identical handwriting in the signature sections, despite different purported signers. The applications were submitted by different real estate agents. What is the most appropriate immediate action?
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Which of the following scenarios would allow an MLO to call a consumer whose number is on the National Do-Not-Call Registry?
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A borrower's employment verification shows they started a new job three weeks ago with a $95,000 annual salary, but their previous tax returns show unemployment benefits for the past 18 months. The employer is a recently formed LLC with the same address as the borrower's residence. What is the primary concern?