Sally applied for a real estate loan. The lender can lawfully require her to answer questions in regards to her:
Correct Answer
D) income.
Wait — the correct answer is D (income), not C (gender). Income is a legitimate, legally required factor in underwriting because it directly measures a borrower's capacity to repay the loan. Under ECOA (15 U.S.C. § 1691) and Regulation B, lenders must evaluate financial factors like income, employment history, and credit score, and are explicitly permitted — indeed expected — to ask about these. The question's stated correct answer of 'C: gender' appears to be a keying error in the source data; gender is a protected class under ECOA and the Fair Housing Act and may NOT be asked about, while income is always lawfully required.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Financing Question
Background Knowledge for Financing
Real World Application in Financing
Common Mistakes to Avoid on Financing Questions
Related Topics & Key Terms
Related Topics:
Key Terms:
More Financing Questions
West Virginia redemption period is:
A cooperative in Manhattan is converting to a condominium. How does this conversion affect existing shareholders with share loans?
The loan-to-value ratio (LTV) is calculated as:
Compliance case Cedar Docket frames the issue this way. A Florida buyer borrows $272,000 on a purchase price of $320,000. What is the loan-to-value ratio?
Which of these activities can the owner of a life estate NOT do?
- → Which of the following is a key benefit of a VA loan for eligible veterans?
- → In Delaware financing, which theory is practiced?
- → Audit memo Cedar Case highlights this Florida rule. The purchase price is $360,000, and the lender will lend 90% of the price. How much cash down payment must the buyer bring?
- → Kevin is told that his co-op purchase will require board approval even though he has financing pre-approval. Why is board approval necessary for cooperative purchases in New York?
- → Tennessee has which redemption period after foreclosure?
- → Foreclosure in Vermont is typically:
- → Mississippi uses which security instrument?
- → Which of the following is NOT required for a valid bill of sale?
- → Deficiency judgments in Alabama are:
- → Sarah Martinez is purchasing a co-op apartment in Manhattan for $750,000. Her lender explains the financing structure for cooperative units. What type of loan will Sarah receive for this co-op purchase?