Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What type of financial standing question may a lender legally ask a loan applicant?

1. Are you divorced?

2. How much is your current income?

3. What is your rental history?

4. Do you pay alimony?

The correct answer is: Do you pay alimony?

The question regarding whether a lender may legally ask about the payment of alimony relates to the lender's assessment of the applicant's financial obligations and stability. Alimony payments are considered a financial liability and affect the applicant's ability to qualify for a loan. Lenders are allowed to inquire about obligations that might impact an individual's debt-to-income ratio, which is a critical factor in determining lending risk. Questions about alimony specifically address the financial commitments the applicant has, which can play a significant role in calculating how much debt the applicant can responsibly manage. Understanding one's financial obligations helps lenders evaluate whether the applicant will be able to make timely mortgage payments. While inquiries about marital status, such as divorce, may provide some relevant context to a borrower’s financial situation, they can lead to discriminatory practices if used improperly. Income and rental history questions are standard in loan applications, but specific legalities exist surrounding how that information is gathered and used, especially in relation to protected classes.