Elena is pre-approved for a share loan but the co-op board rejects her application despite her strong finances. What recourse does Elena have under New York law?
Correct Answer
B) She can sue for damages if she can prove the rejection was based on discrimination
While co-op boards have broad discretion, they cannot discriminate based on protected characteristics under Fair Housing laws. If Elena can prove the rejection was based on race, religion, national origin, or other protected status, she may have grounds for a discrimination lawsuit.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
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