A NH lender refuses to offer mortgage loans in certain neighborhoods based on the racial composition of those areas. This practice is known as redlining and is:
Correct Answer
B) Illegal under both federal and NH state law as a form of discriminatory lending
Redlining is the illegal practice of denying or limiting financial services, such as mortgage loans or insurance, to residents of certain areas based on the racial or ethnic composition of those neighborhoods. It is prohibited under the federal Fair Housing Act of 1968, the Equal Credit Opportunity Act, and the Community Reinvestment Act, as well as NH's Law Against Discrimination (RSA 354-A). No actuarial or risk-based justification permits discrimination based on neighborhood demographics.
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Related Topics & Key Terms
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Related Concepts
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
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