Question 83

Broker A's suggestion for the new Hispanic buyer client is allowed under the Federal Fair Housing law.

Broker A's suggestion is permissible as it does not discriminate against the buyer based on race or national origin; rather, it recognizes the buyer's potential comfort level in a neighborhood with similar demographics.

A) A broker informs a potential seller that there is an influx of immigrants snatching up rentals in the neighborhood, so it would be a good time to sell.

This option is incorrect because it implies a negative connotation about immigrants and suggests that their presence will affect property values. Such statements can be viewed as discriminatory and promote a biased perspective about neighborhoods, which is not compliant with the Fair Housing law.

B) Broker A meets a new Hispanic buyer client. Broker B just sold a handful of condos to other Hispanic buyers in the Kentwood neighborhood, so a broker A suggests the new buyer might be comfortable in that neighborhood.

This option is correct as it focuses on the buyer's potential comfort without implying any exclusionary practices. Broker A's suggestion is based on a shared cultural background, which does not violate Fair Housing regulations.

C) A lender receives notice that a loan application submitted on behalf of a client has been denied. The lender knew the borrower was well qualified, but is told that area is off limits for new loans because of its crime rate.

This option is incorrect as it reflects a discriminatory practice where the denial is based on the crime rate of an area rather than the individual's qualifications. Such practices can disproportionately affect certain groups and violate Fair Housing laws.

D) A landlord receives a rental application from a prospective tenant, who came from Russia a few years ago to attend the local university. The lender denies the rental application after asking for the prospective tenant's visa and determines that it expires in 3 months.

This option is incorrect because it suggests that the landlord is making a decision based on the tenant's immigration status, which is discriminatory. The Fair Housing law prohibits discrimination based on national origin, and denying a rental application based solely on the expiration of a visa is not compliant.

Conclusion

Broker A's action in suggesting a neighborhood to the new Hispanic buyer is permissible under Fair Housing law as it promotes inclusivity and comfort without implying discrimination. In contrast, the other options reflect discriminatory practices or implications that violate the principles established by the Federal Fair Housing law, reinforcing the importance of treating all clients equitably regardless of their background.