Which of the following is not typically used for qualifying mortgages as prime or subprime?
A) The borrower's income
B) The borrower's credit score
C) The borrower's ethnicity
D) The loan to value ratio

Question

Quizplus · Accepted Answer

The borrower's ethnicity cannot be used to qualify mortgages as prime or subprime as it is considered discriminatory and is illegal under fair lending laws such as the Equal Credit Opportunity Act (ECOA) and Fair Housing Act (FHA). The other options, such as the borrower's income, credit score, and loan to value ratio, are commonly used to determine the creditworthiness of a borrower and to classify mortgages as either prime or subprime.

Which of the Following Is Not Typically Used for Qualifying