Targeted marketing of optional products or services on the basis of race may indicate an increased risk of potential ________ violations.

Targeted marketing of optional products or services based on race can create significant compliance concerns, particularly in relation to the Equal Credit Opportunity Act (ECOA). ECOA is designed to ensure that all individuals have equal access to credit without discrimination based on race, color, religion, national origin, sex, marital status, or age. When marketing is directed disproportionately towards or away from racial categories, it suggests a possibility of discriminatory practices in lending.

This type of targeted marketing can lead to violations because it implies that certain racial groups are being treated differently, which could result in unequal access to mortgage products and services. Such behavior could undermine the foundational goal of ECOA to promote equal treatment in financial services.

In contrast, the other options relate to different aspects of consumer finance regulation. The Real Estate Settlement Procedures Act (RESPA) primarily governs disclosures and practices in real estate settlement processes. The Truth in Lending Act (TILA) deals with the disclosure of credit terms and costs, while the Fair Credit Reporting Act (FCRA) regulates the collection and use of consumer credit information. While all these acts play critical roles in consumer protection, they do not address discrimination based on race in the same way that ECOA does. Thus, the identified risk from targeted