Question 83

Broker A's suggestion for the new buyer to consider the Kentwood neighborhood is allowed under Federal Fair Housing law.

This action is permissible because it does not involve discrimination based on race or ethnicity. Broker A is merely suggesting a neighborhood where other Hispanic buyers have found comfort, which can be considered a neutral recommendation rather than one based on exclusionary practices.

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 action is not allowed under the Federal Fair Housing law as it implies a discriminatory view of immigrants and could be seen as steering potential sellers based on demographic changes. The focus on "immigrants" could suggest a bias against certain groups, potentially violating fair housing protections.

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 action is allowed under the Federal Fair Housing law because it highlights a neighborhood where the buyer may find a sense of community among peers, without suggesting exclusion or discrimination against other groups. This type of suggestion can be beneficial and does not violate fair housing principles.

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 scenario raises concerns regarding discrimination based on the area’s demographics or perceived risk. Denying loans based on crime rates could disproportionately affect certain groups and is therefore inconsistent with the equitable guidelines established by the Federal Fair Housing law.

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 action is not compliant with the Federal Fair Housing law as it involves discrimination based on the tenant's national origin and immigration status. Denying a rental application solely based on visa status can lead to unfair treatment of individuals from certain countries.

Conclusion

Broker A's suggestion to the new Hispanic buyer is the only action that aligns with the principles of the Federal Fair Housing law, as it promotes inclusivity without discrimination. The other options either reflect biased practices or discriminatory behaviors that contravene fair housing regulations, highlighting the importance of equitable treatment in housing-related decisions.