According to fair lending laws, which of the following can be asked of loan applicants?

The correct choice highlights a misconception about what can be asked during the loan application process under fair lending laws. In reality, fair lending laws prohibit lenders from gathering information about an applicant's race, color, religion, sex, national origin, familial status, or disability in a way that could lead to discrimination. Instead, lenders are encouraged to focus on objective financial criteria such as employment history, annual income, and credit score, which are essential for assessing a borrower's ability to repay the loan.

Information regarding employment history provides insight into the stability and reliability of an applicant's income. Annual income is crucial for determining whether the applicant can afford mortgage payments. A credit score reflects the individual's creditworthiness and is a significant factor in lending decisions. By focusing on these aspects, lenders ensure they are treating all applicants fairly and equitably as required by law.