A Florida real estate licensee learns that a lender is offering different interest rates to similarly qualified borrowers based on race. What action should the licensee take?
Correct Answer
B) Report the discriminatory practices to appropriate authorities
Correct: Licensees must report discriminatory lending practices to protect fair housing rights. Why not A: Continuing as usual enables discrimination. Why not C: Individual negotiation doesn't address the systemic discrimination. Why not D: Ignoring discrimination violates professional and legal duties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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