Which scenario would most likely trigger a fair lending investigation based on HMDA data analysis?
Correct Answer
C) Consistently higher denial rates for minority applicants across all income levels
Consistently higher denial rates for minority applicants across all income levels suggests potential disparate treatment discrimination. This pattern cannot be easily explained by legitimate business factors and would likely trigger regulatory investigation under fair lending laws.
Why This Is the Correct Answer
Consistently higher denial rates for minority applicants across all income levels suggests potential disparate treatment discrimination. This pattern cannot be easily explained by legitimate business factors and would likely trigger regulatory investigation under fair lending laws.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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