EthicsQuestion 331 of 400
An agent tells homeowners 'you should sell now before more minority families move in and prices drop,' hoping to profit from panic sales. This illegal practice is:
a.Redlining
b.Blockbusting
c.Steering
d.Disparate impact
Explanation
Inducing owners to sell by exploiting fears about the entry of a protected class into the neighborhood is blockbusting. Redlining denies credit by area, steering directs buyers based on protected traits, and disparate impact concerns neutral policies with unequal effects, none of which describes panic-selling inducement.
Law Reference: Fair Housing Act / blockbustingPractice all 400 questions free — no signup required.
Related questions on this topic
- An affiliated business arrangement (where a broker refers borrowers to a title company it partly owns) can be permissible under RESPA only if:
- Which combination on a purchase file is the STRONGEST red flag for occupancy fraud?
- The core purpose of consumer protection laws like UDAAP in mortgage lending is to:
- An originator wants to email a borrower's full loan file, including SSN and bank data, over an unsecured public connection. The best practice under GLBA safeguards is to:
- Under RESPA, a mortgage broker takes a real estate agent to an expensive dinner every time the agent sends a referral. This is most likely:
- A lender refuses to count a borrower's part-time income solely because the borrower is a woman on maternity leave, assuming she 'won't return to work.' This assumption most likely violates ECOA on the basis of:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review