EthicsQuestion 301 of 400
A loan officer only shows loan programs in predominantly minority neighborhoods to minority applicants and never mentions those areas to white applicants. This is an example of:
a.Redlining
b.Blockbusting
c.Disparate impact only
d.Steering
Explanation
Directing applicants toward or away from particular neighborhoods based on a protected characteristic is steering. Redlining denies credit to whole areas, blockbusting exploits fears to induce sales, and this is intentional disparate treatment, not merely a neutral policy with disparate impact.
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Related questions on this topic
- Which characteristic is a protected class under the federal Fair Housing Act that is NOT expressly listed in ECOA?
- 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:
- 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 neutral-looking lending policy that unintentionally causes a significantly worse outcome for a protected class, without business justification, may still be illegal under the theory of:
- Under the prohibition on unfair, deceptive, or abusive acts or practices (UDAAP), a practice is 'deceptive' when it:
- Which agency has primary federal authority to enforce the prohibition on unfair, deceptive, or abusive acts or practices in consumer mortgage lending?
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