FinancingLending_discriminationEASY
A lender's underwriting guideline requires all applications to meet a minimum loan amount of $100,000. Data shows this policy disproportionately excludes applicants in predominantly minority neighborhoods where home prices are lower. No business justification supports the minimum. What type of discrimination does this represent?
Correct Answer
D) Disparate impact
A facially neutral policy (minimum loan amount) that disproportionately excludes a protected group without sufficient business justification is disparate impact discrimination.
Answer Options
A
Disparate treatmentB
RedliningC
Reverse redliningD
Disparate impactWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Financing Question
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Background Knowledge for Financing
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Real World Application in Financing
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Related Topics & Key Terms
Key Terms:
lending_discriminationfinancingdisparate_impactpolicy
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