FinancingLending_discriminationHARD
A mortgage company aggressively markets adjustable-rate mortgages with high initial fees to elderly homeowners in a predominantly African-American neighborhood, even though these borrowers would qualify for better fixed-rate products. This practice combines elements of which TWO discriminatory lending concepts?
Correct Answer
B) Reverse redlining and illegal steering in lending
Targeting residents of a protected area for unfavorable terms is reverse redlining. Directing qualified borrowers toward inferior products for discriminatory reasons is illegal steering in lending. Both are present here.
Answer Options
A
Redlining and disparate treatmentB
Reverse redlining and illegal steering in lendingC
Disparate impact and adverse actionD
Community reinvestment and HMDA reportingWhy This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
lending_discriminationfinancingreverse_redliningsteering
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