Final answer:
A lender should not consider the borrower's race when reviewing their loan application. This is in accordance with the Equal Credit Opportunity Act, which prohibits discrimination on the basis of race, gender, ethnicity, and age in credit decisions. Objective criteria such as credit history, income, and employment status should be used to make lending decisions.
Step-by-step explanation:
When a lender is reviewing a borrower's loan application, the lender should NOT refuse to consider the borrower's D. Race. This is under the provisions of the Equal Credit Opportunity Act, a federal law that prevents discrimination on the basis of gender, race, ethnicity, and, in certain circumstances, age in making credit decisions. The law was specifically designed to abolish discriminatory practices that were once common, such as refusing to lend to married women without their husband's consent or considering only a husband's income for credit purposes.
Lenders are required to make credit decisions based on objective criteria, such as an individual's credit history, income, and employment status. These factors are considered fair ways to make credit decisions because they reflect the borrower's ability to repay the loan. Discriminatory factors like race and gender, however, are not related to financial reliability and are therefore prohibited considerations in the lending process.