Question

Whitney conducted three loan interviews and for each interview she considered the age of the applicant. Based on your understanding of Regulation B, which option correctly lists two instances of age consideration that were legal?
A. Whitney considered the applicant's age to determine if the applicant can legally enter into a contract and to determine the applicant's life expectancy
B. Whitney considered the applicant's age to determine the applicant's life expectancy and if the applicant is planning to retire during the life of the loan
C. Whitney considered the applicant's age to determine if the applicant is planning to retire during the life of the loan and if the applicant can legally enter into a contract
D. Whitney considered the applicant's relative health and if the applicant is planning to retire during the life of the loan

Answer 1

Answer: C. Whitney considered the applicant's age to determine if the applicant is planning to retire during the life of the loan and if the applicant can legally enter into a contract.

Explanation: When conducting loan interviews in other to ascertain if the applicant is eligible or not. The individual's age is considered in other to determine the time of retirement of the applicant so as to know if the applicant will retire during the loan period ends. Age is also required in other to deduce if the applicant can legally enter into a contract. An applicants relative health or life expectancy isn't required in other to determine loan eligibility.

Answer 2

Answer:

C.Whitney considered the applicant's age to determine if the applicant is planning to retire during the life of the loan and if the applicant can legally enter into a contract

Explanation:

Whitney conducted three loan interviews and for each interview she considered the age of the applicant. Based on your understanding of Regulation B, which option correctly lists two instances of age consideration that were legal?

The correct answer is C. Regulation B is a regulation intended to prevent applicants from being discriminated against in any aspect of a credit transaction and prohibits creditors from discriminated against in any aspect of a credit transaction with regard to their race, color, religion, national origin, sex, marital status, or age.Regulation B sometimes referred to by bankers as B Fair because it covers fair treatment for all loan applicants.

Option A and B are incorrect because life expectancy is not a factor a bank may consider in determining creditworthiness.Likewise option D is incorrect because the applicant's relative health is not a factor a bank may consider in determining creditworthiness.