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?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which information is NOT required to be included in an AfBA disclosure?
A lender quotes an APR of 4.25% on a mortgage loan, but the actual APR calculation results in 4.28%. Under TILA's APR accuracy tolerance, is this disclosure compliant?
Which of the following fees would NOT be included in the finance charge calculation under TILA?
For a purchase money mortgage with a loan amount of $400,000, which of the following represents the correct method for calculating the APR?
A servicer receives a borrower's written request for payoff information on Monday. The borrower needs the information for a refinance closing scheduled for the following Friday. When must the servicer provide an accurate payoff statement?
A lender provides a borrower with initial TILA disclosures showing an APR of 4.5%. Due to market changes, the final APR at closing is 4.625%. What disclosure requirement applies?
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A lender discovers that the property taxes were significantly underestimated on the original Loan Estimate, resulting in a $150 monthly payment increase. What action must the lender take?
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When collecting ethnicity information under HMDA, what should a loan officer do if an applicant refuses to provide the information?