NMLS SAFE MLO — Mortgage Loan Originator — All Questions

A borrower's back-end debt-to-income ratio is 52%, above program guidelines. Which action could most directly help the borrower qualify?

• a.Order a second appraisal
• b.Change the property address
• c.Increase the loan amount requested
• d.Pay off or pay down a car loan and credit cards to lower monthly debt✓

The back-end ratio includes all monthly debts. Paying off or paying down installment and revolving debts lowers the numerator and reduces the ratio, improving qualification. A second appraisal or a larger loan does not lower the debt-to-income ratio.

An FHA loan is run through an automated underwriting system. Which scorecard evaluates the credit risk for FHA loans?

• a.TOTAL Scorecard✓
• b.Desktop Underwriter Scorecard
• c.Closing Disclosure Scorecard
• d.Loan Prospector Scorecard

FHA uses the TOTAL (Technology Open To Approved Lenders) Scorecard, which runs through DU or LPA to assess credit risk on FHA-insured loans. DU and LPA are the underlying systems, and there is no Closing Disclosure scorecard.

During post-closing, a lender reviews the completed file before selling the loan to an investor. What is the main purpose of this post-closing review?

• a.To reset the borrower's interest rate
• b.To confirm the file is complete, accurate, and compliant so the loan is saleable✓
• c.To re-order the appraisal for the buyer's records
• d.To collect the borrower's first payment in person

Post-closing review (quality control and file assembly) confirms that documents are complete, accurate, and compliant with investor and regulatory requirements so the loan can be delivered or sold in the secondary market. It does not change the rate or collect payments.

A borrower wants to use a $10,000 gift from a parent for the down payment. What documentation does an underwriter typically require?

• a.The parent's tax return only
• b.A promissory note showing the gift must be repaid
• c.A gift letter stating no repayment is expected, plus evidence of transfer and, often, donor ability✓
• d.Nothing; gifts never need documentation

Gift funds require a gift letter confirming the money is a true gift with no expectation of repayment, along with documentation of the transfer of funds and sometimes the donor's ability to give. If repayment were required, it would be a loan, not a gift, and would count as debt.

A lender's title insurance policy (loan policy) primarily protects:

• a.The seller against buyer default
• b.The borrower against declining property values
• c.The lender against loss from covered title defects up to the loan amount✓
• d.The appraiser against valuation errors

A loan (lender's) title policy protects the lender's lien position against covered defects in title, such as undisclosed liens or ownership claims, up to the loan amount. An owner's policy protects the buyer. It does not insure against market declines or default.

An underwriter reviews a borrower's employment stability. A borrower who changed jobs within the same field for higher pay is generally viewed how, compared with one who has frequent gaps and unrelated job changes?

• a.Automatically disqualified for changing jobs
• b.Less favorably, because any job change is a red flag
• c.More favorably, because advancement within a field supports income stability✓
• d.Identically, because job history is never considered

Underwriters assess the likelihood that income will continue. A job change within the same field for career advancement generally supports stability, while frequent employment gaps or unrelated changes raise concerns. Job changes alone do not disqualify a borrower.

A borrower is quoted a 'float-down' option on their rate lock. What does a float-down provision allow?

• a.The borrower to obtain a lower rate if market rates fall during the lock period, usually for a fee✓
• b.The borrower to skip the appraisal
• c.The borrower to switch to an adjustable-rate loan for free
• d.The lender to raise the rate anytime before closing

A float-down option lets the borrower take advantage of a lower rate if market rates decline during the lock period, while still being protected if rates rise. It typically involves a fee and specific terms, and it is unrelated to appraisals or loan type changes.

An appraisal report notes the subject property's highest and best use differs from its current use. Why does 'highest and best use' matter in valuation?

• a.It fixes the loan term
• b.It sets the interest rate
• c.It reflects the legally permissible, physically possible, and financially feasible use that supports maximum value✓
• d.It determines the borrower's credit score

Highest and best use is the reasonably probable use of a property that is legally permissible, physically possible, financially feasible, and maximally productive, and it underpins the appraiser's value conclusion. It does not set rates, credit scores, or loan terms.

In qualifying an applicant end-to-end, a lender evaluates the 'four Cs.' Which set correctly lists them?

• a.Charge, Cushion, Cap, and Carryback
• b.Capacity, Credit, Capital, and Collateral✓
• c.Cash, Coverage, Compliance, and Contingency
• d.Cost, Closing, Contract, and Commission

Traditional underwriting evaluates the four Cs: Capacity (ability to repay), Credit (history), Capital (assets/reserves), and Collateral (the property). The other lists are not the recognized underwriting framework.

A processor orders a verification of employment (VOE) but the borrower started a new job last week. What additional step is most appropriate?

• a.Require the borrower to quit and return to the old job
• b.Ignore the new job entirely
• c.Cancel the loan because the borrower is newly employed
• d.Document the prior two-year employment history and, if needed, verify the offer/start of new employment✓

Underwriting evaluates a two-year employment history to gauge stability. A recent job change is acceptable when the prior history is documented and the new employment is verified, often via an offer letter and a verbal or written VOE. New employment alone does not require denial.

A borrower must receive the Closing Disclosure at least how many business days before consummation of the loan?

• a.Two business days
• b.Three business days✓
• c.Seven business days
• d.One business day

Under TRID, the creditor must ensure the borrower receives the Closing Disclosure at least three business days before consummation. Certain changes (like an APR increase beyond tolerance) can trigger a new three-day waiting period. The seven-day rule applies to the Loan Estimate before consummation.TILA-RESPA Integrated Disclosure (TRID)

During underwriting, an appraiser identifies functional obsolescence in the subject home. What does functional obsolescence refer to?

• a.Physical wear from age and use
• b.A loss in value from outdated design or features that reduce usefulness✓
• c.A decline in the overall neighborhood economy
• d.A lien recorded against the property

Functional obsolescence is a loss in value caused by outdated or poorly designed features, such as an awkward floor plan or too few bathrooms. Physical deterioration is wear and tear, and external obsolescence comes from outside factors like a declining neighborhood.

A borrower with strong income but only 90 days of seasoning on a large deposit asks why 'reserves' matter. What are reserves in underwriting?

• a.The amount of the seller's concession
• b.The appraiser's contingency fee
• c.Liquid assets remaining after closing that could cover several months of mortgage payments✓
• d.The lender's profit on the loan

Reserves are the borrower's liquid assets remaining after down payment and closing costs, often measured in months of PITI. They cushion against payment disruption and strengthen the file. They are not lender profit, seller concessions, or appraiser fees.

A settlement agent prepares to record the deed and mortgage after funding. Recording these documents primarily serves to:

• a.Give public notice of the ownership transfer and the lender's lien✓
• b.Cancel the title insurance policy
• c.Set the borrower's interest rate
• d.Waive the borrower's right of rescission

Recording the deed and mortgage/deed of trust in the public land records gives constructive notice of the change in ownership and the lender's lien position, protecting priority. Recording does not set rates, waive rescission, or cancel title insurance.

An underwriter needs to confirm a borrower's outstanding debts and payment history. Which document is the primary source?

• a.The tri-merge credit report✓
• b.The appraisal report
• c.The flood determination certificate
• d.The purchase contract

A tri-merge credit report combines data from the three major bureaus and is the primary source for a borrower's outstanding debts, balances, and payment history used to calculate ratios and assess credit. The contract, appraisal, and flood certificate serve other purposes.

A borrower is buying a condominium. In addition to the standard file, what does the lender typically require during underwriting?

• a.A commercial appraisal
• b.Only a driver's license
• c.A condo project review, including the HOA's budget, insurance, and owner-occupancy details✓
• d.Nothing extra beyond a house purchase

Condo financing requires a project review to confirm the homeowners association is financially sound, adequately insured, and meets investor requirements for owner-occupancy and litigation. This is in addition to the borrower's standard qualifying documents.

A borrower's application shows income from child support they wish to use to qualify. How may this income be treated?

• a.It only counts as an asset
• b.It counts double because it is tax-free
• c.It can never be used to qualify
• d.It may count if documented, likely to continue for a defined period (often at least three years), and received consistently✓

Child support, alimony, or maintenance may be used as qualifying income if it is documented, has been received consistently, and is likely to continue for at least a defined period (commonly three years). A borrower is not required to disclose it, but if used, it must be supported.

A closing is scheduled, but the underwriter adds a 'prior-to-funding' condition. How does this differ from a 'prior-to-doc' condition?

• a.There is no difference; both are optional
• b.Both must be satisfied only after recording
• c.A prior-to-doc condition must be met before closing documents are drawn, while a prior-to-funding condition must be met before loan proceeds are released✓
• d.A prior-to-funding condition is met after the loan closes

Conditions are sequenced: prior-to-document (PTD) conditions must be satisfied before closing documents are prepared, and prior-to-funding (PTF) conditions must be cleared before loan proceeds are disbursed. Neither is optional, and both precede funding/recording.

After closing, a lender compiles loan-level data such as loan purpose, applicant demographics, and action taken for annual reporting. Which law drives this data collection?

• a.The Fair Credit Reporting Act
• b.The Fair Housing Act
• c.The Home Mortgage Disclosure Act✓
• d.The Truth in Lending Act

The Home Mortgage Disclosure Act (HMDA) requires covered lenders to collect and report loan-level data, including loan purpose, applicant demographic information, and the action taken, to help identify lending patterns. It is a post-origination reporting obligation distinct from FCRA, TILA, or the Fair Housing Act.Home Mortgage Disclosure Act (HMDA)

An appraisal uses the cost approach on a newer, unique home with few comparable sales. The cost approach estimates value by:

• a.Averaging the last three listing prices
• b.Capitalizing the property's rental income
• c.Adding land value to the replacement cost of improvements, less depreciation✓
• d.Using only the borrower's opinion of value

The cost approach estimates value as the land value plus the current cost to replace the improvements, minus accrued depreciation. It is most useful for new or special-purpose properties with limited comparable sales. It is not based on listings, income capitalization, or borrower opinion.

A borrower makes a 20% down payment on a conventional loan. What is one common effect on the loan structure?

• a.An escrow account is prohibited
• b.The interest rate must be adjustable
• c.Private mortgage insurance is generally not required at 80% LTV or below✓
• d.The appraisal is waived automatically

On a conventional loan, a 20% down payment puts the loan at 80% loan-to-value, which typically eliminates the requirement for private mortgage insurance (PMI). The down payment does not force an adjustable rate, prohibit escrow, or automatically waive the appraisal.

An appraiser adjusts a comparable that has an extra bathroom compared to the subject property. In the sales comparison approach, adjustments are made to the:

• a.Subject property, to match each comparable
• b.Borrower's income, to match the value
• c.Comparable properties, to make them reflect the subject✓
• d.Loan amount, to match the appraisal

In the sales comparison approach, adjustments are applied to the comparable sales, not the subject, to account for differences so each comp reflects what the subject would sell for. If a comp is superior (extra bath), its price is adjusted downward. The subject is never adjusted.

At settlement on a purchase, property taxes are 'prorated' between buyer and seller. What does proration accomplish?

• a.It doubles the tax bill at closing
• b.It allocates taxes so each party pays for the portion of the period they owned the property✓
• c.It transfers the taxes to the lender permanently
• d.It waives the taxes for the year

Proration divides recurring costs like property taxes between buyer and seller based on the portion of the tax period each owns the property. This ensures each party pays their fair share as of the closing date. It does not waive, double, or permanently transfer the taxes.

A borrower's DU findings return 'Refer/Eligible.' What does this typically mean for the file?

• a.The rate is automatically reduced
• b.The loan is denied and cannot proceed
• c.The file requires manual underwriting because the automated system did not issue an approve recommendation✓
• d.The loan is automatically approved with no review

A 'Refer' recommendation means the automated system could not render an approval and the file must be manually underwritten by a person, who evaluates compensating factors. 'Eligible' indicates the loan meets program parameters. Refer is not an automatic approval or denial.

During processing, the borrower opens a new credit card and finances furniture before closing. Why can this jeopardize the loan?

• a.It guarantees a faster closing
• b.It automatically lowers the interest rate
• c.It has no effect once the application is submitted
• d.New debt can raise the debt-to-income ratio and change the approval, especially if a soft re-pull occurs before closing✓

New debt taken on during processing increases monthly obligations and the debt-to-income ratio. Lenders often re-verify credit shortly before closing, and new accounts can invalidate the approval or delay closing. Borrowers are typically advised to avoid new credit until after closing.

A title commitment lists Schedule B exceptions. What are these exceptions?

• a.Matters the title policy will NOT insure against, such as certain easements or restrictions✓
• b.The borrower's monthly payment breakdown
• c.Amounts the lender must pay the appraiser
• d.The lock expiration dates

Schedule B of a title commitment lists exceptions, meaning specific matters like easements, covenants, or restrictions that the title policy will not cover. Reviewing these helps determine whether title is acceptable. They are unrelated to appraiser fees, payments, or lock dates.

An underwriter must calculate qualifying income for a borrower paid $22/hour working a standard 40-hour week. What is the correct gross monthly income (using 2,080 hours annually)?

• a.$2,933
• b.$5,280
• c.$3,813✓
• d.$1,760

Annual income is $22 times 2,080 hours, or $45,760, and gross monthly income is $45,760 divided by 12, which equals about $3,813. Multiplying hourly pay by 40 gives only a weekly figure, so the annual-then-divide method yields the correct monthly income.

A lender orders a 'desktop' or 'hybrid' appraisal instead of a full appraisal on an eligible loan. What distinguishes these from a traditional appraisal?

• a.They set the interest rate directly
• b.They are only used after closing
• c.They eliminate the need to determine value
• d.They rely on data and, for hybrids, third-party property inspections rather than a full appraiser interior visit✓

Desktop appraisals use property data and public records without an appraiser's on-site visit, while hybrid appraisals pair a third-party inspection with an appraiser's analysis. Both still produce a value opinion, but reduce the traditional full interior/exterior appraiser inspection.

A borrower's assets include stocks in a brokerage account they plan to use for closing. How does an underwriter typically treat these funds?

• a.They may be counted, often at a discounted value, once liquidation or accessibility is documented✓
• b.They must be sold to the lender directly
• c.They are never usable because they are not cash
• d.They count at triple their market value

Marketable securities such as stocks can be used for down payment and reserves, but underwriters may apply a discount to account for market volatility and require documentation of value and, if being used at closing, evidence of liquidation. They are not tripled or excluded outright.

Between the Loan Estimate and Closing Disclosure, the recording fee (a zero-tolerance/limited-tolerance item) increases beyond the allowed tolerance. What must the lender generally do?

• a.Cure the tolerance violation, typically by refunding the borrower the excess amount✓
• b.Nothing; all fees can change freely
• c.Re-order the appraisal
• d.Cancel the loan

Under TRID tolerance rules, certain fees may not increase from the Loan Estimate beyond set limits. If they do, the lender must cure the violation, generally by refunding the excess to the borrower, usually within 60 days of consummation. It does not require canceling the loan.TILA-RESPA Integrated Disclosure (TRID)

A borrower assumes their monthly payment on a loan with an escrow account is fixed forever. Why might the escrow portion change over time?

• a.Because the lender adds new discount points annually
• b.Because property taxes and insurance premiums can rise or fall, changing the required escrow amount✓
• c.Because the interest rate on a fixed loan changes yearly
• d.Because the loan principal is recalculated monthly

Even on a fixed-rate loan, the escrow portion of the payment can change because property taxes and insurance premiums vary over time. Lenders perform an annual escrow analysis and adjust the monthly escrow to cover the new amounts, which changes the total payment.

A borrower qualifies with a co-signer (non-occupant co-borrower). How does the co-borrower generally affect qualifying?

• a.The co-borrower cannot be held liable for the debt
• b.The co-borrower's income and debts are included, and they share legal liability for repayment✓
• c.The co-borrower's income is ignored entirely
• d.Only the co-borrower's assets count, not the primary borrower's

A non-occupant co-borrower's income and debts are considered in qualifying, which can help the primary borrower's ratios, and the co-borrower is legally liable for repaying the loan. Their contribution is not ignored, and they do share responsibility for the debt.

After the borrower reviews the initial Closing Disclosure, the seller agrees to pay an additional closing cost credit at the table. How should this be handled?

• a.Skip disclosing the credit since it helps the borrower
• b.Cancel the closing entirely
• c.Update the Closing Disclosure to reflect the seller credit before consummation✓
• d.Leave the disclosure unchanged and record it later informally

Changes to the terms or costs, such as an added seller credit, must be reflected accurately on the Closing Disclosure so the figures match the actual transaction at consummation. Some changes require a corrected CD, but the transaction must be documented accurately, not left unchanged or undisclosed.

A borrower is purchasing a home appraised at $300,000 with a sale price of $290,000 and wants a 90% loan. On what value is the maximum loan calculated, and what is it?

• a.On the lower of price or value ($290,000); $261,000✓
• b.On the appraised value; $270,000
• c.On the down payment; $29,000
• d.On the higher of price or value ($300,000); $270,000

Loan-to-value uses the lesser of the purchase price or appraised value, which is $290,000 here. At 90% LTV, the maximum loan is 0.90 times $290,000, or $261,000. Using the higher figure would overstate the allowable loan, so the lower value governs.

A borrower buying a second home tells the loan officer she will live in it as her primary residence to obtain a lower rate, though she plans to rent it out. This is an example of what type of mortgage fraud?

• a.Identity theft
• b.Straw buyer fraud
• c.Occupancy fraud✓
• d.Appraisal fraud

Misrepresenting how a property will be used (owner-occupied vs. investment) to obtain better loan terms is occupancy fraud, because occupancy status affects pricing and eligibility. Appraisal fraud involves inflating value, straw buyer fraud uses another person's name to hide the true buyer, and identity theft uses another person's information without consent.Mortgage fraud (occupancy fraud)

An applicant submits altered pay stubs showing $8,000 monthly income when he actually earns $4,000. What type of fraud is this?

• a.Equity skimming
• b.Income (misrepresentation) fraud✓
• c.Occupancy fraud
• d.Appraisal fraud

Falsifying or inflating income documents to qualify for a loan is income fraud, a form of misrepresentation of borrower qualifications. Occupancy fraud concerns residence use, appraisal fraud concerns property value, and equity skimming diverts a property's equity or rents from the true owner.Mortgage fraud (income fraud)

An investor with poor credit pays his cousin, who has good credit, to apply for a mortgage and take title, though the investor will make payments and control the property. The cousin is acting as a:

• a.Guarantor
• b.Cosigner
• c.Straw buyer✓
• d.Qualified co-borrower

A straw buyer lends their name and credit to obtain a loan for someone else who is the true beneficiary, concealing the real borrower from the lender. A cosigner and guarantor are disclosed parties who genuinely share liability, and a qualified co-borrower actually intends to use and pay for the property jointly and openly.Mortgage fraud (straw buyer)

A loan officer pressures an appraiser to 'hit' a value $40,000 higher than comparable sales support, so the loan will close. This is best described as:

• a.A permissible reconsideration of value
• b.Occupancy fraud
• c.Appraisal fraud / undue influence on the appraiser✓
• d.A legitimate quality-control review

Coercing or pressuring an appraiser to reach a predetermined value undermines an independent valuation and is appraisal fraud, prohibited under appraiser-independence rules. A permissible reconsideration presents new comparable data without dictating a target, and neither occupancy fraud nor a routine QC review involves pressuring the value.Mortgage fraud (appraisal fraud)

A fraudster uses a stolen Social Security number and driver's license to apply for a mortgage in someone else's name without their knowledge. This type of fraud is:

• a.Straw buyer fraud
• b.Occupancy fraud
• c.Income fraud
• d.Identity theft✓

Using another real person's identifying information without their knowledge or consent to obtain a loan is identity theft. A straw buyer knowingly participates, occupancy fraud concerns residence misrepresentation, and income fraud concerns falsified earnings.Mortgage fraud (identity theft)

In a fraud-for-profit scheme involving inflated appraisals and quick resales (flipping), who is typically harmed?

• a.Lenders, legitimate borrowers, and surrounding property owners✓
• b.Only the appraiser
• c.Only the fraudsters who organize the scheme
• d.No one, if the loan is repaid on time

Fraud-for-profit schemes harm lenders (losses on overstated loans), honest borrowers and communities (distorted values, foreclosures), and neighbors (depressed comps). It is false that no one is harmed or that only a single party bears the cost; the organizers are the perpetrators, not the victims.Mortgage fraud (who is harmed)

A family exaggerates their income slightly so they can qualify to buy a home they intend to live in. This is generally categorized as:

• a.Not fraud at all, since they will live there
• b.Predatory lending
• c.Fraud for profit
• d.Fraud for housing (property)✓

Fraud committed by borrowers to obtain a home they intend to occupy is 'fraud for housing (property).' Fraud for profit is committed by insiders/rings to extract money, it remains fraud even if they occupy the home, and predatory lending is misconduct by a lender, not a borrower misrepresentation.Mortgage fraud (fraud for property vs. profit)

Which of the following is a classic red flag for possible mortgage fraud on an application?

• a.The appraisal is supported by three recent comparable sales
• b.The borrower provides a clear, verifiable two-year employment history
• c.The borrower's stated income matches verified W-2s
• d.A large, unexplained deposit appears in the borrower's account just before closing✓

An undocumented, unexplained large deposit right before closing is a red flag because it may indicate an undisclosed loan or a gifted down payment being hidden. Verifiable employment, well-supported appraisals, and income that matches W-2s are signs of a clean file, not red flags.Mortgage fraud red flags

A file shows the same phone number for the borrower, the seller, and the appraiser, and the sale price is far above the neighborhood. These facts most likely indicate:

• a.A well-documented gift of equity
• b.A normal purchase transaction
• c.A required government subsidy
• d.Possible collusion / fraud for profit✓

Shared contact information among supposedly independent parties plus an inflated price suggests collusion, a hallmark of fraud-for-profit rings. It is not a normal arm's-length transaction, a documented gift of equity is disclosed and legitimate, and no government subsidy explains matching phone numbers across parties.Mortgage fraud red flags

Which of the following is NOT a prohibited basis for discrimination under the Equal Credit Opportunity Act (ECOA)?

• a.The applicant's credit score✓
• b.The applicant's religion
• c.Receipt of public assistance income
• d.The applicant's marital status

Credit score is a legitimate, non-prohibited factor lenders may use to assess creditworthiness. ECOA prohibits discrimination based on race, color, religion, national origin, sex, marital status, age, and receipt of public assistance income, so religion, marital status, and public-assistance income are all protected bases.ECOA / Regulation B

A creditworthy single woman is told she must have a male cosigner even though her income and credit qualify her on her own. This most likely violates ECOA on the basis of:

• a.Age
• b.National origin
• c.Sex and marital status✓
• d.Receipt of public assistance

Requiring a cosigner from a qualified applicant because she is an unmarried woman discriminates on the basis of sex and marital status, both prohibited by ECOA. Age, national origin, and public-assistance status are also protected but are not the basis implicated by demanding a male cosigner.ECOA / Regulation B

Under ECOA, when a lender takes adverse action on an application, the applicant is generally entitled to:

• a.Nothing, unless the applicant asks in writing
• b.An automatic second review by a federal regulator
• c.A refund of the application fee
• d.A notice stating the specific reasons for the denial (or how to obtain them)✓

ECOA/Regulation B requires an adverse-action notice giving the specific principal reasons for denial or telling the applicant how to request them. There is no requirement to refund fees, no automatic federal re-review, and the notice is owed without the applicant having to request it first.ECOA / Regulation B

A loan officer discourages a qualified applicant from applying after learning the applicant is 68 years old, saying 'a loan probably isn't right for someone your age.' This is:

• a.Permissible, if the officer is polite
• b.Prohibited discouragement on the basis of age under ECOA✓
• c.Only a customer-service issue, not a legal one
• d.Permissible, because age affects repayment risk

Actively discouraging a qualified applicant from applying because of age is prohibited discrimination under ECOA, which forbids discouragement on any prohibited basis. Age may not be used to deter a qualified applicant, courtesy does not cure the violation, and it is a legal violation, not merely a service lapse.ECOA / Regulation B

Which characteristic is a protected class under the federal Fair Housing Act that is NOT expressly listed in ECOA?

• a.Sex
• b.Disability (handicap)✓
• c.National origin
• d.Race

Disability (handicap) and familial status are Fair Housing Act protected classes not expressly named in ECOA's list. Race, national origin, and sex are protected under both statutes, so they do not distinguish the two laws.Fair Housing Act

A family with three young children is told an apartment complex is 'really better suited for adults.' This most likely violates the Fair Housing Act's protection for:

• a.Familial status✓
• b.Religion
• c.Color
• d.Disability

Steering a family away from housing because they have children implicates familial status, a Fair Housing Act protected class. Disability, religion, and color are also protected but are not the basis at issue when the concern is the presence of children.Fair Housing Act

The practice of denying or restricting mortgage credit to entire neighborhoods based on their racial or ethnic composition, regardless of individual applicants' qualifications, is called:

• a.Disparate treatment of a single applicant
• b.Blockbusting
• c.Steering
• d.Redlining✓

Redlining is refusing or restricting credit to whole geographic areas because of their racial or ethnic makeup. Steering directs individuals toward or away from areas, blockbusting induces panic selling by exploiting fears of neighborhood change, and disparate treatment of one applicant addresses a single person rather than an entire neighborhood.Fair Housing Act