AO-16 indicates that conclusions about characteristics such as race or gender cannot be used because they are ______.

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Prepare for the McKissock Fair Housing, Fair Lending Test. Utilize flashcards and multiple-choice questions with detailed hints and explanations to ace your exam!

Multiple Choice

AO-16 indicates that conclusions about characteristics such as race or gender cannot be used because they are ______.

Explanation:
Protected characteristics cannot be used in lending decisions because law prohibits it. This is why the statement says those conclusions are precluded by applicable law—the Fair Housing Act and related laws bar decisions based on race, gender, and other protected traits. While bias describes the harmful effect, the legal rule is the explicit prohibition. Calling them irrelevant isn’t precise, since these traits are protected by law and their consideration is not allowed. They aren’t outdated either, as protections remain in force. So the best answer is that they are precluded by applicable law.

Protected characteristics cannot be used in lending decisions because law prohibits it. This is why the statement says those conclusions are precluded by applicable law—the Fair Housing Act and related laws bar decisions based on race, gender, and other protected traits. While bias describes the harmful effect, the legal rule is the explicit prohibition. Calling them irrelevant isn’t precise, since these traits are protected by law and their consideration is not allowed. They aren’t outdated either, as protections remain in force. So the best answer is that they are precluded by applicable law.

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