What must a mortgage lender do under the Fair Housing Act?

Under the Fair Housing Act, a mortgage lender is required to prevent discrimination in housing transactions. This act is designed to ensure that individuals have equal access to housing opportunities regardless of certain protected characteristics, such as race, color, religion, sex, national origin, familial status, and disability.

By preventing discrimination in housing transactions, lenders must ensure that all potential borrowers are treated fairly and equally in the lending process, from the advertising of loans to the approval of mortgage applications. This includes adhering to nondiscriminatory practices and ensuring that all clients, regardless of their background or personal characteristics, are afforded the same opportunity to buy or rent homes.

The other choices do not accurately reflect the primary responsibility set forth by the Fair Housing Act. For instance, preventing discrimination based on income is not a requirement of the Act, nor is adjusting mortgage rates based on perceived risk a direct mandate related to fair housing practices. Providing financial counseling is also not a stipulated requirement under the Act, even though it can be a beneficial service.