Question 4

Beth is a 75-year-old widow that decided to sell her large house and move into a smaller, more manageable apartment. After several months of searching, Beth decided to purchase a twobedroom apartment in a mostly immigrant neighborhood with a bohemian vibe. Despite having excellent credit and more than enough money for the down payment, Beths loan application was denied. The reason given by the bank was that Beths loan would have been too risky given that Beth was over 65 years old and had not held a job in over twenty years.

Knowing that other people in her age-range had obtained loans from this same bank, Beth pressed the loan officer for further details about why her application was denied. After some back and forth, the loan officer finally admitted that the bank charged substantially higher interest rates for people purchasing homes in that immigrant neighborhood, and that the bank did not want to make an old lady pay these high rates. Enraged by what she had just heard, Beth immediately contacted her lawyer.

1. Can Beth sue the bank claiming that she is the victim of discriminatory practices under the Fair Housing Act (or FHA) of 1968? Why or why not? (3 points)

2. If the FHA is not applicable, what other type of laws can Beth try to use in order to sue the bank? (3 points)

3. If Beth is unable to find a lawyer capable of representing her in a lawsuit, is there some other way Beth can try to seek justice under the FHA? (3 points)

4. Aside from allegedly discriminating against Beth, what other illegal activity is this bank possibly engaged in? (3 points)