Nationwide Mortgage Licensing System (NMLS) Practice Exam

What is one stipulation of the Fair Housing Act?

1. Protection against age discrimination

2. Protection from discrimination based on marital status

3. Protection against discrimination based on race, color, religion, sex, or national origin

4. Protection from discrimination in mortgage insurance rates

The correct answer is: Protection against discrimination based on race, color, religion, sex, or national origin

The Fair Housing Act is a critical piece of legislation that was established to prevent discrimination in housing practices. One of its key stipulations is the protection against discrimination based on race, color, religion, sex, or national origin. This means that individuals cannot be denied housing opportunities, treated unfairly in the rental or purchase process, or subjected to discriminatory practices based on these characteristics. The protections outlined in the Fair Housing Act are designed to encourage equitable access to housing for all individuals, irrespective of their background. This legislative framework promotes diversity and inclusion by prohibiting the consideration of these factors in housing decisions. In contrast, age discrimination and marital status are not covered under the Fair Housing Act, which is focused specifically on the aforementioned categories. Additionally, while there are laws addressing discrimination in financial services, such as mortgage insurance rates, that issue is typically governed by different regulations, and not all forms of discrimination in that context are covered by the Fair Housing Act itself. The emphasis on race, color, religion, sex, or national origin highlights the Act's foundational intent to combat systemic inequities in housing.