Ivan Is Applying for a Mortgage to Purchase His First

Multiple Choice

Ivan is applying for a mortgage to purchase his first home. His credit rating is poor due to several late payments on his credit cards and car loan. He is upset because his friend Jerry-who has excellent credit-was approved for a loan, whereas Ivan was rejected. Which of the following best describes the mortgage company's actions?

A) unethical-both Ivan and Jerry should have received credit regardless of their credit histories
B) ethical-because credit history is an important factor in credit decisions
C) illegal-all consumers are entitled by law to credit approval
D) unethical-if Jerry is employed and Ivan is not