Question

According to federal fair lending laws, which of the following facts cannot be considered when qualifying an applicant for a loan?

a: A disabled applicant's credit report shows several instances of 60- and - 90- day late credit payments
b: A female applicant is four months pregnant and might not continue working once her baby is born
c: A minority applicant doesn't not have sufficient funds for a down payment
d: A female applicant's credit report and application shows gaps of several months between jobs over the past two years.

Answer 1

Under federal fair lending laws, it is not permissible for lenders to consider a disabled applicant's credit history of late payments when qualifying them for a loan.

Step-by-step explanation:

According to the federal fair lending laws, it is illegal for lenders to consider certain factors when qualifying an applicant for a loan. One of these factors is the disability status of the applicant and their credit history, such as instances of late credit payments. This means that a disabled applicant's credit report showing several instances of late payments cannot be considered when making a loan decision. The purpose of these laws is to ensure equal credit opportunities for all individuals, regardless of their disability status or credit history.