Question

Requiring a spouse to serve as a co-signer on a loan is not a discriminatory practice when:

a: The primary borrower is a women
b: The signature is required by law in a community property state
c: The couple plans to reside together in the home securing the loan
d: The couple resides a neighborhood populated by borrowers perceived to be higher credit risks

Answer 1

A co-signer may be required by law for loans in community property states, in line with the Equal Credit Opportunity Act which prohibits discrimination in lending.

Step-by-step explanation:

Requiring a spouse to serve as a co-signer on a loan is not a discriminatory practice when b: The signature is required by law in a community property state. In community property states, both spouses may be required to consent to significant financial transactions affecting marital property, which includes taking out loans that are secured by property owned by the couple. This is in accordance with the Equal Credit Opportunity Act which prohibits lenders from using discriminatory factors such as gender, race, or ethnicity in making credit-related decisions. Therefore, legislation mandates that both spouses may need to co-sign when the loan involves joint property.