Which of the following is not a legal theory used by federal regulators to identify illegal discrimination in mortgage lending?

Disparate Impact is a legal theory that analyzes the effects of a policy or practice that may appear neutral but disproportionately affects a protected group. It focuses on the consequences of an action rather than the intent behind it. Disparate Treatment, on the other hand, involves direct discrimination where individuals are treated differently based on characteristics like race, color, religion, sex, or national origin.

The choice labeled "Disparate Choices" is not recognized as a legal theory in the context of identifying discrimination in mortgage lending or any other context. Similarly, "Controlled Choices" does not pertain to established theories used by regulators to assess discrimination. These concepts may not have a foundation in the legal scrutiny that federal regulators apply when identifying discriminatory practices in lending.

In summary, while disparate impact and disparate treatment are key frameworks in understanding how discrimination can occur in mortgage lending, the concepts of “Disparate Choices” and “Controlled Choices” do not relate to recognized legal theories in this field.